Today I made couple mistakes, Trades too soon without pivot confirmation. But even with bad trades because of diversification I can end up with slight profit. Without the mistakes I should made more profit though.
I believe maintaining mental health is very important for trading Forex. But if we keep losing trade every day, what will happen? There are few things that will happen:
1. We may miss great setup that can cover losses because losing can snap confidence.
2. We stop trading to tweak the system, While it is good, too many tweaking also can make us miss opportunity. What happen if the change is worse? More mental breakdown incoming. Over analyze also not good for brain health.
3. Rage trading, This is the most dangerous one. We add lots to recoup the losses and if this happen, sooner or later we will bust the account.
And more outcome will happen and mostly is not good for the trading job. So what we do is we have to keep the winner day in day out. We trade every pairs that trigger the signal. If you have 60% winning ratio system then every 10 pairs traded, 6 will become the winner. If we trade at least 5 pairs a day, then surely almost every day will become profitable. Although even Goldman Sachs have losing days, so expect there will be losing day. But if we can start strong, few losses won't affect our trading health.
Forex is unique. It is different with other instruments. If we trade index or stocks, most of the time market will have one direction only. But Forex is interconnected with each other. If we trade stocks or index, if the trigger is to buy while market is on a red day, that will be contradict with each other. A very strong bearish day for Stocks Market will actually drive some pairs up. If war happened, then JPY will go strong. Ii is called pairs for a reason. If we buy stocks then we hope the market index is green because high chance our stocks will in sync. But Forex is we can shot any signal we want and some of them should be profitable.
I believe maintaining mental health is very important for trading Forex. But if we keep losing trade every day, what will happen? There are few things that will happen:
1. We may miss great setup that can cover losses because losing can snap confidence.
2. We stop trading to tweak the system, While it is good, too many tweaking also can make us miss opportunity. What happen if the change is worse? More mental breakdown incoming. Over analyze also not good for brain health.
3. Rage trading, This is the most dangerous one. We add lots to recoup the losses and if this happen, sooner or later we will bust the account.
And more outcome will happen and mostly is not good for the trading job. So what we do is we have to keep the winner day in day out. We trade every pairs that trigger the signal. If you have 60% winning ratio system then every 10 pairs traded, 6 will become the winner. If we trade at least 5 pairs a day, then surely almost every day will become profitable. Although even Goldman Sachs have losing days, so expect there will be losing day. But if we can start strong, few losses won't affect our trading health.
Forex is unique. It is different with other instruments. If we trade index or stocks, most of the time market will have one direction only. But Forex is interconnected with each other. If we trade stocks or index, if the trigger is to buy while market is on a red day, that will be contradict with each other. A very strong bearish day for Stocks Market will actually drive some pairs up. If war happened, then JPY will go strong. Ii is called pairs for a reason. If we buy stocks then we hope the market index is green because high chance our stocks will in sync. But Forex is we can shot any signal we want and some of them should be profitable.
I am amaze of how you switch from scalp to swing without any problem, good read.
ReplyDeleteThanks Cory, how is it goin? I am done looking for the best trading system. I just look for the system that won't awake the demon inside me. Trading one instrument day in day out for me will bring old bad habit again. That is why same system will not suit every person. I have many more self discovery that soon be shared here. I hope it will inspired many people who read it. Hope u have a good life and trade and nice to see u again...
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