Are you losing money trading Forex?
That’s ok. Understand it is part of your learning process and…
Stop wanting to be right!
You know the old adage:
Cut your loses short, let your profits run.
But you still screw it up most of the time…
Why is it that you often hold on to a loser, hoping for the best?
On the opposite, when you get a winner, why do you quickly cash it in?
Because YOU want to be right.
Because you are letting your fear and pride control your decisions rather than logic.
Sadly enough, at this stage, being right seems more important than making money…
What to do?
1. Recognize YOU are the problem
The problem is usually not about your system.
And if it is not about the system, it is about YOU.
YOU have got to acknowledge YOU are the problem.
YOU are the one that can’t logically follow what the market is saying because of emotions.
The very first step to change is to admit YOU have to change…
2. Work at it
Now that you have pinpointed the issue, you have got to fix it.
You have got to fight against your emotions and learn to only trade based on facts.
The secret is to hustle, hustle and hustle more:
-Only trade with a clear your mind. If your mind is not clear, stay away from the market and come back later;
-Learn to follow your system at ALL TIME. No matter what. If you can’t, stay away from the market and come back later;
-Maintain a trading journal and be true to yourself. Count the number of bad (emotional) trades you take every week and progressively decrease that number over time;
-Hustle even more.
3. Rejoice over your choices, not the results
If you did cut your loses short, you got to be happy. Even though you lost money.
If you did take your winners too early, you got to be disappointed. Even though you made money.
In fact, don’t bother about money right now. Really.
Just do the right things.
Because once you do the right things, leaving emotions out of the way and logically following the market, the rest will take care of itself…