Your main enemy in Forex trading

Author：佚名 Source：none Hits：131 UpdateTime：2008-10-18 23:56:54


Have you ever experience that you always in the wrong position while trading Forex ? When you place SELL order the market goes BULL, and when you place BUY order the market goes BEARISH. You are not alone. One time or another we will experience such depressing instances. The thing is, we dont understand what really went wrong.

Main enemy for us, Forex trader, is ourselves. Believe it or not. You are the enemy. You are the one who make the wrong call. You are the one who make the wrong order.

Unfortunately most of us concentrate too much on technique. We spend countless hours doing research and back testing. We spend thousands of dollars for books, reference materials, program and system. But we forget about ourselves. We forget to teach and control our behavior while in front of the trading platform. The keep repeating the same mistake over and over again. We forget about our trading plan. We dont even remember our trading rules. What a pity.

Two main enemies inside us is greed and fear. All of us have this virus is us. We are "infected". One of the best way to control our greed and fear is to discipline ourselves, follow our trading plan and trading rules. Simply if the condition is not right, just shutdown our trading platform. If we meet our target, just shutdown our trading platform. Dont give a second though.

To simplify the process, our trading plan and trading rules need to be comprehensive. Everything must be very clear. Our trading plan for example must indicate on what condition we can enter our order. For example, our system clearly indicate that we shall only go for SELL on GBPUSD. That is our trading plan. So during actual trading hours we should stick to our trading plan. Only SELL for GPBUSD, never place order against that. If the market go BULL just call it a day.

In most cases trading against our trading plan will result in disaster. During trading period our mind are in a very stressful situation. Decision made during that period will simply be spontaneous. Meaning, we wont really aware what are we doing. We never put enough though in our decision. In simple term we never really use our brain for the decision. You can expect what will be the consequences.

So next time before your trading session get your trading plan and rules ready and stick to it. Never make a spontaneous decision in front of your trading platform.