Knowing the difference between a strategy that's not working for you and your style of trading, and one that has given you a few losing trades lately is a tricky concept for a lot of traders to grasp. I hear about traders that have a few losing trades and think it's solely the strategy they're using, and so they switch strategies and are still experiencing losing trades. These are common problems that a trader will face, and making the wrong assumptions can lead to disastrous decisions. It’s important for you as a trader to truly understand how common losing trades are so you know what to expect, and really familiarize yourself with statistics behind trading.
Not only does every trader typically possess bad habits, but every person in general usually has bad habits they wish they could correct. When it comes to trading, it's so important to exercise good habits rather than strengthening and further supporting your bad habits. By doing so, you will be leading yourself to profitable trading sessions and the development of your overall trading performance.
First, let me start this article by saying “an inspirational quote a day can keep the negativity away!” Reading inspirational quotes can help anyone having a down day and if you try to make reading inspirational quotes a daily habit, it's far easier to keep a positive frame of mind when something in life happens. And knowing how life is, a trial of some sort is bound to happen, often. It might be a case of road rage, (I suffer from road rage myself and completely understand!) someone shorted you the wrong amount of change, it could be a loss of your job, social media rage, a loss in the market, etc. Everyday annoyances and trials have a lessened negative pull if you instead focus on the positive inspirational message. If you have been trading the currency market, then you know it can be very fruitful, although traders that have been trading professionally for years have days in the market of total losses. So, it's natural to wonder how they can continue to keep not only making money but keep their spirits up when they have these losing days. As a trader myself, I keep quotes pinned to the wall that I can see when I’m trading.
Trading Forex has attracted many people with the idea that trading is exciting and exhilarating in many ways. Trading has many opportunities of the market being fast paced and volatile, but it also has times where it's slow and feels almost like it's dragging on. It’s hard to keep your motivation and excitement up when your not making money at times, and it feels boring to be honest. In order to be successful as a trader, you need to stay engaged. I've put together some things you can try to keep your motivation levels up and your excitement as even paced as you can when it comes to Forex trading.
Humans are creatures of habit, as the saying goes, and traders are no different. If anything, a trader is much more a creature of habit than anyone. Crossover, buy; breakout, sell; new crossover, sell; etc. We fall into the habit of looking at one thing to trigger a response for us to execute a trade or set one up for later. These habits can be good or bad depending on how out there they are. Apiary Fund reviews hundreds of trading accounts and sees good habits and bad habits alike all the time. Here are some of the trading habits Apiary Fund has seen that makes for a successful and lower risk trading account.
Sometimes it seems like the market is out to get you; every trade you make goes against you like some sniper waiting to shoot you down. Rest assured that you are not alone in feeling this way. In fact, it is a common feeling among both seasoned and novice traders.
8. “Adventure. Excitement. A Jedi craves not these things.” The Empire Strikes Back
Some might say that the word Investor replaces the word Jedi quite well in this sentence; for some reason, the glamorous life of investing just doesn’t pull to some people. However, being a boring investor can equal some exciting returns when it’s time to retire.
“Genius is one percent inspiration and ninety-nine percent perspiration.” -Thomas Edison
Take a look at this equity curve from one of Apiary’s demo accounts:
What do you see?
It is true when they say that most things in life follow patterns. However, sometimes it is hard for us to recognize these patterns. The markets are no exception. To be successful, a trader must train his or her eyes to recognize and predict upcoming patterns. See if you can guess the next shape in the pattern below: