True Forex Trader

I haven’t been trading for one week. I missed Forex

When I came back I was eager to start trading again. I was supposed  to calm my excitement down, but I didn’t. I started trading just because I wanted to, not because I saw very good opportunities to enter new trades. It is not difficult to predict what happened to me: I had a loser after loser… I couldn’t believe it, each time I opened a new position I thought: “ok, this time I’m definitely going to win…” It never(!) happen…

The lesson I learned then - Never trade when you simply want to trade. Stay aside and enjoy looking at your saved from trouble account balance. Don’t trade without a reason to trade, e.g. without your trading rules telling you to get in.

Another costly mistake I made - at one point I increased my position size… What I hoped for? I hoped to recover those silly losses I made. What happened? I was hit with even large losses…

You may be thinking now, that everything I’m telling you here you have read and learned times ago. I also knew that all my actions can lead to the disaster, nevertheless I pursued my goal to recover my money… I didn’t want to accept huge losses from my increased position sizes, so I started hedging… It put me in even more difficult position, in which I’m currently boiling… I left my trades over weekend and next week I will try to manage it all and begin my new trading: focused, max emotionless and Only according to my rules.

I’ve learned a costly lesson this week, but I still have my initial investment saved. I will never ever increase my trade size this way again, I will never try to revenge on the market to recover my losses, I will never trade because I want to trade, I should also review my hedging approach and manage it in such way that I’m not stuck with trades for several days or even a whole week paying interests each day and triple interest on Wednesday…

Good thing about all this is that I now have a plan to accurately close my hedging positions next week. I have about 95% chance of closing in with saving my initial capital of $250 alive and start my new trading career… or if the market allows me to, I may make some additional money on top as a reward for my change trading attitude, strict rules based trading and no more stupidness!

Overall I’m very happy that those Forex lessons I’ve learned this week didn’t cost me a lot, but taught me gold.

Filed under: First steps in Forex