Time and time again I see trading strategies that mention "control your emotions"..."trade what you see and not what you feel". I find this rule that was created long ago as totally pointless. For those of you who know me...you know by now psychology is the name of my game...analyzing market sentiment and price action psychology.
To further elaborate...we all have our indicators..we all have our strategies and methods for entering the market. If indicator X does this...i do this and so on...for those who trade with the naked eye like myself...if this support is broken...i do this...if that resistance is tapped...i do this. Whatever my eyes see. We all are the masters of our accounts and trade as we see fit.
Forex is NOT a mechanical system. If that was true...all EA would bring in millions to each individual trader. The markets are highly erratic and without logic at times...especially this past year. We all get emotional at such times.
The only intent of this post is to let others embrace the idea of listening to emotions.
Ask yourself...how many times have you placed an order because your strategy indicated you should even though you didnt "feel" it was right and that trade would later come back and turn into "stop loss hit". How many times have you left a position open and said "my take profit was twice what my stop loss is or whatever your strategy says" and yet you felt after only a small gain that you should shouldnt have been in that trade in the first place? And then later instead of closing position because you "felt" it... pa came back and did indeed hit your stop loss. How many times did your indicators say that no setup for a trade is appearing yet your gut feeling or observations "felt" like it was a good opportunity to enter a trade and when you didn't enter because your indicators did not give a signal you only regretted that you would have indeed made a profit later?
Emotions are what define us as humans. Our ability to feel is something that should be embraced not ignored. It is our perceptions that push us ahead in life, whether it's to take a career decision or pursue that one girl of your dreams. We all are emotional at all times and to deny this most basic of human characteristics is a big mistake. Instead learn to use it to your advantage.
If you are in a position and fear comes to mind...close your position. If you are in a profitable position that made a profit yet you feel are starting to get greedy...at least reduce the size of your position locking in some of the profit. If you feel that the setup your strategy has created for you will not turn into a profit...do not take that trade. If you are in a losing position yet you "feel" pa will go in your favor in the long run...stick to your position until you are absolutely proven wrong especially if you use wide stops (proper mm of course).
I may be only 22 but I have embraced the psychological side of life since an early age and fully employ my emotions. My drive is to become a profitable trader forever, to never hold a real job, to never worry about an insufferable boss, to not worry about the boundaries of countries or oceans or the limits set of not having money. I have had my down times in trading...there were times when I hit rock bottom..yet...never...have i ...said to myself....I quit. I know I am meant for this... I know I will succeed in Forex...no matter how long it takes. And now...lets use last month as an example...90% winning trades...3000pips gained...250% equity increase with proper mm. My drive to succeed which is the most powerful emotion for me got me to the endline. And this is only the beggining
I only hope that others embrace their emotions too..and break a ridiculous taboo. No emotions while trading?...to me its like going to a gunfight without the gun...reconsider this issue.
To further elaborate...we all have our indicators..we all have our strategies and methods for entering the market. If indicator X does this...i do this and so on...for those who trade with the naked eye like myself...if this support is broken...i do this...if that resistance is tapped...i do this. Whatever my eyes see. We all are the masters of our accounts and trade as we see fit.
Forex is NOT a mechanical system. If that was true...all EA would bring in millions to each individual trader. The markets are highly erratic and without logic at times...especially this past year. We all get emotional at such times.
The only intent of this post is to let others embrace the idea of listening to emotions.
Ask yourself...how many times have you placed an order because your strategy indicated you should even though you didnt "feel" it was right and that trade would later come back and turn into "stop loss hit". How many times have you left a position open and said "my take profit was twice what my stop loss is or whatever your strategy says" and yet you felt after only a small gain that you should shouldnt have been in that trade in the first place? And then later instead of closing position because you "felt" it... pa came back and did indeed hit your stop loss. How many times did your indicators say that no setup for a trade is appearing yet your gut feeling or observations "felt" like it was a good opportunity to enter a trade and when you didn't enter because your indicators did not give a signal you only regretted that you would have indeed made a profit later?
Emotions are what define us as humans. Our ability to feel is something that should be embraced not ignored. It is our perceptions that push us ahead in life, whether it's to take a career decision or pursue that one girl of your dreams. We all are emotional at all times and to deny this most basic of human characteristics is a big mistake. Instead learn to use it to your advantage.
If you are in a position and fear comes to mind...close your position. If you are in a profitable position that made a profit yet you feel are starting to get greedy...at least reduce the size of your position locking in some of the profit. If you feel that the setup your strategy has created for you will not turn into a profit...do not take that trade. If you are in a losing position yet you "feel" pa will go in your favor in the long run...stick to your position until you are absolutely proven wrong especially if you use wide stops (proper mm of course).
I may be only 22 but I have embraced the psychological side of life since an early age and fully employ my emotions. My drive is to become a profitable trader forever, to never hold a real job, to never worry about an insufferable boss, to not worry about the boundaries of countries or oceans or the limits set of not having money. I have had my down times in trading...there were times when I hit rock bottom..yet...never...have i ...said to myself....I quit. I know I am meant for this... I know I will succeed in Forex...no matter how long it takes. And now...lets use last month as an example...90% winning trades...3000pips gained...250% equity increase with proper mm. My drive to succeed which is the most powerful emotion for me got me to the endline. And this is only the beggining
I only hope that others embrace their emotions too..and break a ridiculous taboo. No emotions while trading?...to me its like going to a gunfight without the gun...reconsider this issue.
Different opinions highly valued, ignorant to slander.