There’s one thing that few people will dispute: We’re all imperfect and therefore make mistakes and do things we come to regret.
I was away from the markets recently due to some transient technical problems. I nevertheless received phone calls from those who found the markets difficult. So I decided to write this small essay to encourage those who are facing tough times on the markets.
According to Paul Liburd, trading isn’t a win-win situation. Be prepared to lose on some trades as well… It isn’t really a question of whether you’re right or not, the fact is that markets move in an unexpected way and they have a knack for surprising people when they least expect it.
I’ll continue to emphasize that the markets aren’t predictable (yet we can make money from them). I’m a market speculator, but I don’t try to predict the markets. Speculation isn’t prediction. There are ways we can become better traders without predicting the markets. The overwhelming need to be right about open trades undermines most of us when we try to challenge the markets. 3 years ago, a trader was arguing with me that if the markets can’t be predicted, then trading is senseless because we need to predict the next markets directions and place trades accordingly. I told him to cut his losses and run his profits and then I walked away. Less than 6 months later, he called me and declared that the markets aren’t predictable indeed. He’s now making fine progress as a trader.
All skilled traders face occasional losses. Whether you buy resistance and sell support, whether you sell resistance and buy support, whether you know all the reasons behind price developments or not, whether you use a plain chart or you combine a million indicators on a chart – you’ll make both losses alongside profits. You need to accept this and stop looking for what doesn’t exit. You should also not be deluded by those who don’t mention their losses as their ‘holier-than-thou’ attitude can be misleading. If I were a private trader, I wouldn’t talk about losses. But since I’m an analyst, I mustn’t give my readers any impression that I’m perfect as a professional. If I couldn’t mention my losses, then I shouldn’t talk about my profits as well. To me, you know, concealing your losses and telling people only about your profits is a criminal behavior. The trading world would be much better if traders were honest.
Even if you suffered losses, tell yourself that it isn’t the end of your life. If you get whacked and humbled by the markets, your life goes on. All you can do is try your best, given the strategies that you’ve learned. Count your blessings – no matter how bad things are, they could be a lot worse. No matter how bad things are, they’ll get a lot better. If you don’t think you trading results can improve, they won’t
You losses oughtn’t to sound the death knell of your trading ambition. If a trader loses sight of the focal point and his goals ands stops pushing forward, it brings to nothing all the hard work she or he has already done. The results of success are so heartwarming that you shouldn’t contemplate going back. The past is unalterable; you can’t erase painful past experiences. But such experiences don’t doom you to failure. You can make trading choices in the present that can lead to a happy trading future.
I’m concluding this article with this quote:
“… Workplace studies have shown that extrinsic motivators, like money, do work some of the time, but not as well as intrinsic motivators like recognition, self-fulfillment, quality of experience and esteem. Now, let’s take this notion to the trading platform. One of the first things that traders put as a goal is to make a “lot of money.” It’s not that this extrinsic motivator is entirely ineffective, it is just not as powerful as trading for your family’s future, and your overall quality of life. See, when you identify a “compelling reason,” in other words, that what-matters-most part of your life to the trading process, you automatically invoke your passion. Passion, about any endeavor in life, is your most powerful energizer. It will get you up in the morning and attach you to a turbo-jet with a laser focus on keeping commitments and consistently doing what it takes to be successful.” – Dr. Woody Johnson
Your questions and opinions are highly welcome.
With best regards,
Forex Signals Strategist, Funds Manager &Coach
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