You can back test a system as much as you want but when you start trading it the profitability will be determined by the market conditions not past price history. What looks great on paper can lose on a lot of consecutive trades right at the start.
Your stop can be hit and then the market go in the direction you were positioned for.
Sometimes that pullback that you are waiting for to buy never comes until the trend is over.
Sometimes every momentum signal you buy will be a loser for a long time.
Many times the market whipsaws you in a position for absolutely no reason you can understand.
Sometimes your biggest position sizes are losing trades and your smallest position sizes are the winners.
There is no ‘market’ you are trading against a herd of people all making decisions for many different reasons, and they are not predictable.
You can feel foolish under performing buy and holders during straight up bull markets when you’re trading in and out.
Some trading lessons can’t be learned they have to be experienced with real money.
Money is made and kept based on the math of probabilities, risk, and reward not because a trader is the smartest but because they are the most flexible and adaptable.
1.Study successful traders, try to understand the
reason behind their success, was it the innovative strategy gave them the
success or the mindset.
2.Get some books written by real traders, when I said
real traders I mean traders become writer not writer become trader.
3.Do some business management course, it will open
your eyes, you will know, what have you been doing wrong and how to become a
successful business manager.
4.Manage your time do something when you are not trading,
write a book, paint or teach someone how to trade or something that you like.
Don’t just sit in front of the screen; you need to manage your time properly
that you can handle the stress with logic.
5.Set an overall vision of your future, include
every in this vision. Make a set by step plan to implement the vision.
6.Start everything small and realistic so that you
become skilled risk manager when your capital grew to a sizable amount.
7.Enjoy the benefit of your work, like any other job,
you work, you get paid for that, your approach should be like this.
Over the period of twelve years, I was fortunate to get to
know many traders from different background. It is amazing, how common their approach
towards trading is. I am not an outsider; I had the same approach when I started
trading, I had no idea what trading was, but I started trading with big amount money.
It is somehow in people’s mind that trading is very easy and anyone can make
fortune in this business. But you know the truth; it is so difficult to make consistent
profit in this market, no matter what some people say. If you know it is
difficult then your will approach will be completely different, you will be spend more time to
learn the business and you will afraid to place your foot in to the market. It is
important to be afraid and keep on learning.
of price action, confluence with pattern analysis is the answer to success in the
Forex market. Unpredictability of market can never be overcome but if you contribute
to this chaos than there is no way you will survive in this market for long. I
was mentoring a traders last month, I was so surprised how random people can be,
there is no predictability in human behavior at all? I taught him importance of
capital management and preservation but when he started trading in demo, his
random behavior started show when there is a drawdown .Is it too tough to be
tough when comes to trading. My advice to traders how are still not profitable,
please drop your natural act (we are naturally random) be super discipline, you
will amazed how your trading improve