(level 5) Another 5 Ways to Avoid Losing Money Trading Forex
21. Interpreting forex news incorrectly Fact: is the press only has a very superficial understanding of the news they are reporting and tend to focus on one element and miss the point. Learn to read the source documents and understand it for real.
22. Lucky or Good : Your account balance changes don't tell you the whole story about your trading; fact is, if you are taking a lot of risk and making money you will eventually crash and burn. Look at the individual trade details; focus on your big losses and losing streaks. Ask yourself this - if I had a couple of consecutive losing streaks or a couple of consecutive big losses, how would my account balance look. Generally, traders making money without big daily losses have the best chance of sustaining positive performance. The others are accidents waiting to happen.
23. Too Many Charity Trades : When you make money on a well thought-out trade, don't give back half on a whim; invest your profits from good trades on the next good trade.
24. Courage Under Fire : When a policeman breaks down the door to a drug dealers apartment, he is scared but he does it anyway. When a fireman climbs onto the roof of a burning building, he is scared but does it anyway - and gets the job done. Its the same with trading – it's OK to be scared, but you have to pull the trigger; no trigger = no trades = no profits = no trader.
25. Quality Trading Time : I suggest 3 hours a day of quality, focused trading time; that's about all your brain allows. When you are trading, you must be 100% focused - half way is plain bullshit and does not work. Don't even think that time spent in front of the computer watching the rates has any correlation with profitability; it doesn't. Spend less time but when you are trading, be 100% focused.
22. Lucky or Good : Your account balance changes don't tell you the whole story about your trading; fact is, if you are taking a lot of risk and making money you will eventually crash and burn. Look at the individual trade details; focus on your big losses and losing streaks. Ask yourself this - if I had a couple of consecutive losing streaks or a couple of consecutive big losses, how would my account balance look. Generally, traders making money without big daily losses have the best chance of sustaining positive performance. The others are accidents waiting to happen.
23. Too Many Charity Trades : When you make money on a well thought-out trade, don't give back half on a whim; invest your profits from good trades on the next good trade.
24. Courage Under Fire : When a policeman breaks down the door to a drug dealers apartment, he is scared but he does it anyway. When a fireman climbs onto the roof of a burning building, he is scared but does it anyway - and gets the job done. Its the same with trading – it's OK to be scared, but you have to pull the trigger; no trigger = no trades = no profits = no trader.
25. Quality Trading Time : I suggest 3 hours a day of quality, focused trading time; that's about all your brain allows. When you are trading, you must be 100% focused - half way is plain bullshit and does not work. Don't even think that time spent in front of the computer watching the rates has any correlation with profitability; it doesn't. Spend less time but when you are trading, be 100% focused.
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