The absence of clearly defined trading plan, which includes the rules of entry and exit from the Forex market, almost guarantees you a failure, at least in the long run. New traders usually make the same common mistakes. They often succumb to the temptation to throw their plan under the influence of emotions when things do not go as expected.
The habit of re-use unreliable methods that do not bring income is compounding the situation. Many traders hold losing positions, convincing themselves that the situation is about to change in their favor, even though all the signals and recommendations indicate the opposite. In fact, they just can not stand the thought of a loss.
Why do they continue to torture themselves? Why not just figure out what's going wrong and make a change? There are people for whom it’s not difficult to recognize that the deal is unprofitable or the method chosen is not working properly. Recognizing the error, they change what is needed in their work and move on. But for many people it's hard. After all, they must admit their shortcomings and mistakes. And it's also hard, because it hurts our ego. It’s much simpler to continue self-deception than to be honest with yourself.
If you're just going with the flow, ignoring the problems and just wait for the run out of money in your trading account, then you should immediately stop trading in the Forex market.
Try to analyze the situation and understand what happened. Try to figure out what went wrong and identify the problem. If you reviewed the situation in detail, you will be able to recognize and see the pattern. That is why it is important to keep a record of each transaction as well as about all your trading activities. You need to be free of old patterns and see things in a new light.
You will never be able to become a successful trader if you continue to deny that it's time to change something. So, how to go back down to earth? There are some tips on the subject. First, make sure that you are not trading under the stress. Stress robs clear thinking, you lose flexibility and the ability to take an alternative point of view.
One of the easiest solutions to this problem is just trade less. Less deals - less stress, especially for a beginner. If you are an experienced trader who is faced with a prolonged period of failure, try to reduce the daily load. Sometimes you just need a break. Take a break, a break from trading.
Secondly, make sure that you have a personal life. Trading is addictive, especially when you are lucky. You should not put all your eggs in one basket. Your life will be filled with meaning, if you play different roles, not only as a trader. Developing your identity in different areas, you will not be given undue importance of trading events. This way you will be able to take trading more objectively.
Thirdly, many traders mistakenly believe that they can control the markets. Nobody can control the markets. You must learn to accept everything that comes your way and to trade in accordance with the circumstances. Treat your trading as a journey, going on that you will follow to where the market will lead you.
To a successful journey, you can not afford to incur too many losses. Manage risks, appreciate what you have and have fun. This will help you to operate freely and be creative. Not worth living with negation.
Take note of the existing restrictions and obstacles, learn to get around them and become a successful trader. Write your own trading plan with clearly defined entry and exit points of the market. The most important thing is to set stop losses/ take profits and firmly decide not to break them. Test your system in theory and in practice, in real time with the minimum amount of the contract. There will be bad deals on your way and you should go through them with a grace, and move to the next one.