CONFIDENCE !
Confidence, is a key ingredient in successful trading. What do you need confidence in????? You need confident in your ability, and you need confidence in your strategy.
But I have gotten it wrong so much.
So what I went broke, it is ok. You can do this!!!! (^_^)
How do I start to rebuild??????
You start by taking a deep breathe, taking a break and investing in more education.
I have already gotten education till my head is going to fall off, and I still can't get it right. I JUST WANT TO QUIT!
That is exactly why you need to take a break, if you quit now, you will miss out on how good it feels to win.
Let me explain something, the market will give you plenty of opportunities to make profit. Every trader has losing trades. The successful traders have more winning trades. You just have to learn to take trades that are going to put the odds in your favor. You only have to win most of the times. If you lose, the market is generous and will give you another chance to try again
Trust me, you can do this. Part of your biggest challenge is overcoming the feeling of hopelessness that comes from the idea that you have failed.
YOU HAVE NOT FAILED, you didn't meet your goal, but it is ok. You just discovered how not to do things, and now you are ready to learn a better way (SMILE). I know it is hard now, but if you hang in here with me, I assure you that it will be ok.
Do you still have money in your account?
Yes, but it is just a little.......
Great, leave it alone. I want you to open up a demo or practice account, and practice on it.
I already did that 2 months before I opened my real account.
I went broke two times and almost three, so trust me here. Even though I am very profitable now, I still open a practice account to practice new strategies.
I want you to go to your library and pick up Steve Nison's books:
Beyond Candlesticks and/or Japanese Candlestick Charting Techniques.
Either book is a good place to start.
If you can't find it yet, go to my youtube channel and look at my favorites. I have uploaded lessons there on candlestick trading, it is a good place to start, but the books are better.
http://www.youtube.com/user/TRADERSFRIEND
Do you have an understanding of a lot of your indicators?
I understand them pretty well. I know you don't really use them, do I need to stop using them?
No, they are important for giving you an idea where price might go. Just don't over do it.
I want you to start where most traders should start and that is with the basics, it is so critical for traders to understand where price might reverse on them.
Yes, I can see now that is how I ended up with losing trades, because I would start out good many times and ended up losing and it would make me madder than hell.
We don't want you to be madder than hell, we want you to win at this game. Forex is a zero sum game, it has no mercy, winner take all. YOU CAN BE THAT WINNER!
Once you learn your patterns and understand more of the market psychology, then I want you to practice only on your demo account until you build your confidence back. Forex is like Poker, in that, it is a game where the ones with the confidence will go home with the pot!!!!!!!
I also want you to remind yourself often that you are not that same losing trader, and that you have grown. You have got to tell yourself that or those ghost (of your losing days) in your head will scare you to death. Those past fears will keep you out of good profitable trades which you end up kicking yourself for later.
Listen to me. YOU CAN GO LONG, YOU CAN GO SHORT!!! YOU ARE NOT JUST A BULL OR A BEAR, YOU ARE A CHAMELEON AND CAN CHANGE WHEN THE MARKET CHANGES!
YOU ARE NOT THAT SAME TRADER. YOU ARE BETTER AND MORE INFORMED. YOU CAN DO THIS!!!!!!!
Once you understand your reversal patterns, then you can combine them with what you already know. The practice on your demo account will only lend to your confidence.
When you are ready, you can start back on your real account; but make small short trades. Since you don't have much money left, trade mini if you can.
I only have a mini account.
Great, then we are in business!
Take small trades on reversal signals, but only in the direction of your trend. This will help your confidence, and help you realize that this game is not rocket science, though it can be tricky. YOU CAN DO THIS!!!
Finally come to your platform well rested, if you are fighting with your love, don't trade because a more well rested focused trader is going to take your money.
In order to trade successfully you must identify your trend, be able to read your chart, wait for proper market set-ups, recognize reversal patterns, have confidence in your ability to trade successfully and be focus. My dear Friend, never stop learning and growing the market is always teaching a new lesson
You know where to reach my if you have any questions and I will help you all that I can, I promise (^_^). It will be ok, we can do this together.
HANG IN THERE!
This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.
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