The Authority’ on Price Action Trading. In 2016, Nial won the Million Dollar Trader Competition. Know what your trading strategy is and cd forex training it.
It’s always surprising to me how many people don’t actually even have a trading strategy but still try risking money in the market. If you do not have a strategy that you’re trading with, meaning a trading edge that gives you a better than random chance in the market, you are just gambling and may as well just go to the casino instead. Trading success is not the result of luck or an accident, it takes effort, dedication and passion. Furthermore, once you have actually mastered an effective trading strategy, like price action, you have to stick to it, you cannot waffle and jump between trading strategies as many traders do. Trading involves both losses and wins, and you’ve got to be able to have the fortitude to keep focused during the losses.
If you aren’t in a financial position to risk money in the market, you won’t be in a mental position to do so either. What I mean is, people who are trying to trade but who also can’t really afford to lose any money, are already approaching the market with the wrong trading mindset. You will never be able to let a trade play out or properly absorb losses if you are constantly worried about losing money. Once you learn a solid trading strategy, it’s time to block out the rest of the world.
I don’t know about you, but I trust my own opinion about whether to risk my money or not, more than anyone else’s. If you don’t yet trust yourself, you will eventually. You just need to get some training and screen time in the market, and over time you will gradually build your own trading skill and gut feel about the market. Don’t let the results of your last trade influence your next trade This one is big. Traders often become overly-influenced by their most recent trade. It’s these situations that make or break you, that separate the winners from the losers, the pros from the amateurs. A pro trader in this example, will not be affected by such a situation, whereas an amateur will be mad, angry and want revenge on the market.
It is true that you’ve got to have ice in your veins to trade successfully, because if you give in to every little feeling and emotion that the market stirs up in you, you will be an emotional wreck of a trader and quickly lose all your money. The main piece of logic or fact that will allow you to trade with ice in your veins, is that any one trade has a random distribution of being a winner or loser. What that means, is that your winners and losers are going to be randomly distributed across a series of trades, to learn more about this, check out the article I wrote on it here. Therefore, if you have 5 losers in a row, but you haven’t yet lost 20, it’s still within the natural statistical variance of your trading edge and so there’s absolutely no reason to become emotional or do anything stupid as a result of those 5 losing trades. Control losses, do not avoid them I get emails from traders every week who are clearly trying their hardest to avoid losses. So, learn to control them through risk reward and money management.