Take a look at this equity curve from one of Apiary’s demo accounts:
What do you see?
I see someone with a mental block. However, I also see that they kept trying.
“Genius is one percent inspiration and ninety-nine percent perspiration.”
Perspiration (i.e. hard work) is the key to becoming “genius.” This definitely applies to trading. Apiary's demo accounts offer a chance to become a genius at Forex trading. It gives you the demands of live trading scenarios without any of the pressure of trading real money. This teaches you to think and develop strategy instead of relying on luck. Luck will run out eventually, and it will be your ability to think that's going to help you become successful in the markets.
If you haven’t guessed by now, this is one of my demo accounts. Personally, I like to use a consolidation breakout strategy; when I use it right I'm rewarded with a nice equity curve. Using this, or any strategy, requires discipline and hard work. Here are 7 steps to consider before placing any trade.
- Proper preparation
- Hard Work
- A detailed plan
- Replaying important trades
While each of these steps may mean something different to each of you, everyone could benefit by considering them before entering a trade. Each of my big losing trades are a result of missing at least one of these seven steps; on the other hand, my rebounding wins happened because I chose to follow these steps.
I can’t control what happens with a trade after I’ve placed it, but I can control what I do before placing it. My 6 biggest losing trades in this account are responsible for over half of the total equity lost - that’s out of 50 losing trades! Whether I wasn’t patient enough to wait for the right setup or lacked an exit plan, some step was overlooked. That is something I CAN fix. There is nothing wrong with losing a trade, that’s just part of the game. What’s important is that I follow my trading strategy and stick to it - no matter the temptation to jump into a trade without proper preparation. I can handle the other 44 losses. They wouldn’t amount to much because I followed an exit strategy in each of them.
I’ll end with one of my favorite quotes, and hopefully you can all apply it to your trading:
“Let me tell you something you already know. The world ain’t all sunshine and rainbows. It’s a very mean and nasty place, and I don’t care how tough you are, it will beat you to your knees and keep you there permanently if you let it. You, me, or nobody is gonna hit as hard as life. But it ain’t about how hard you hit. It’s about how hard you can get hit and keep moving forward; how much you can take and keep moving forward. That’s how winning is done! Now, if you know what you’re worth, then go out and get what you’re worth. But you gotta be willing to take the hits, and not pointing fingers saying you ain’t where you wanna be because of him, or her, or anybody. Cowards do that and that ain’t you. You’re better than that!” -Rocky Balboa