The Emotional Roller Coaster Ride of Forex - Part 3/3

3. Cut Losses Short has become Let Losses Run..LOL

Well folks, this is what we are supposed to do, that is, for those who do not have stop loss better have one and for those who already have, the next step for us is to know when it is necessary to get out of the market early since the signs are pointing that our trade ideas are no longer valid.

When I first trade, thank GOD, I have read the right materials that is of reliable source like babypips, Dr Alexander Elder, Dr Van Tharp, just to name a few. Then I bought some EA and signals in hope to catch a trade, make profits, and be a millionaire overnight! lol Now that I know that there is so much hype out there and I thank GOD for leading me to ICT - Michael J. Huddleston and put the right perspective in my mind about currency trading.

I still remember how I ended up blewing my profitable account overnight. I took so large a position with my profits with no stop loss in the hope the market going to reverse. What I build over 80 days with 60 trades now going to drain in couple of days with only 4 trades. Nevertheless, thank GOD that I have withdrawn my initial capital before I commit my trader's suicide.. lol

You bet the feeling was like nothing as if the whole world is falling on you. That is why, the first step in our journey is to preserve capital because we are going to be in this business for the long haul. I recently realized the 1% to 2% risk per trade is simply logical because it is like how many times we give ourselves opportunities to succeed. At 1%, we give ourselves 100 trades opportunites and at 2% we give ourselves 50 trades opportunities to be successfull at initial risk capital.

I think it is just wise for new comers in this business to start with micro account to learn the trades. We all should have resonable expectation for ourselves. If we had not done this before, we should give ourselves ample of opportunities to succeed.

4. Let's Profits Run has become Cut Profit Short..UGH!

You betcha! there is nothing like missing the mega pips move boat! and this is exacly what happen to me today on my cable trade..instead of letting the profits run, I cut it short at 5550 and earn 30 pips instead the possible 110 pips. My limit entry at 5520 was triggered yesterday and today cable move up and I cut the profits short beacuse of fear.

Nevertheless, in everything that happen are lessosn for those who ponder and that is exactly what I did. I wonder why I cut my profits short? GOD wants to give me more and I reject..isn't that awful and I am the one who get emotionally hurt in the end.

So I ponder and finally come to my own conclusion that this is due to my background working for someone else in the corporate when opportunities seldom come twice. I have never been in business of my own and this is my first attempt. How often we heard that adage "opportunities seldom come twice?" Now this is not true in this forex business, because there will always be another day to trade. It really is up to us whether we want to be successful or not. We are our own enemy and this kind of thinking is self-sabotage in this business. It might be true when we work for someone else, but in business like forex, it is simply not.

So, the solutions for me is to learn effective trade management because I am sure this is not the first time I did this and now that I know in forex, opportunities always exist and more than once; indeed numerous and all we got to do is be patient, persist, and never quit for quitters never win and winners never quit.