At some point as a trader, you must have felt like the market is simply out to get you. Sometimes every trade you make goes against you and basically every time you place a trade, it immediately goes into a loss and then never recovers. You take your pain with your stop and then almost immediately after you are out it moves in your original direction and had you extended your stop, the trade would have come into profit. Basically, at times, nothing goes your way.
We have probably all been there in this position, I know that I have, what do I do?
- Firstly, I take a step back. I may take a few days break from trading to regain my focus.
- What I do NOT do is revenge trade.
If you revenge trade, you will more often than not be forcing trades.
Rules, TRADE PLANS, RISK MANAGEMENT which, are all crucial, critical success factors for trading go out of the window.
You have to remain calm, through the frustration. As I have already said, maybe a good time to take a break away from your computer.
It is all about MANAGING YOUR EMOTIONS. This is what separates consistent good profitable traders from the rest.
Here is my approach, and this will come as no surprise.
Examine your TRADING PLAN, entry and exit levels, styles of trades, times of trades, position sizes, stop placements and your overall risk parameters. Ask yourself – Did you adhere to your plan? Sometimes when you have unrealistic goals from the fx market it can really affect your trading mindset.
Were you chasing the market?
You have to let the market come to you. If you do not – you run the risk of placing your broker account under so much pressure that you run the risk of blowing your account.
Basically, as with all things related to Forex trading, it is boring repetitive actions and controlled emotions that give you the edge as a trader. Do not veer away from the tried and tested repetition. It works.
Use the Platinum Methodology and read this at least 2 times a month to refresh your focus.
If you veer way from the disciples you have set in place via your TRADING PLAN, you are asking for trouble.