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Thread: Forex Trading Is Like stacking a Pack of Cards.

  1. #1
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    Forex Trading Is Like stacking a Pack of Cards.

    Forex Trading Is Like stacking a Pack of Cards.


    Have you ever tried stacking a pile of cards? If you haven’t perhaps you should try it now.
    Placing every piece of card, trying to find the precise angle, and with a calm collected touch is the key to building your stack of cards.
    First you must have a solid and stable ground
    Next you must have got the surroundings covered. No open windows – in case the wind blows, no direct fan blowing at you. etc
    Whilst placing that card, you must keep all distractions at bay.
    With a cool & calm collected mind, you will be playing it off better than someone who is anxious and excited.
    Now while you have built your first layer of cards, you begin to gain confidence. Confidence is good, it shows that whatever you have been doing all this while is working.
    However, confidence usually leads to being conceited. And that’s when the trouble begins.
    As you begin to feel conceited and feel that this is easy stuff. You tend not to disregard the basis you have put in at the start that had built your base (first layer).
    You begin placing the cards faster, with lesser precision and with a conceited heart. No longer calm & compose as you feel that this is a piece of cake and you are able to get the stack of cards growing faster than it should.
    You lose the consistency that brought you this far, and with one slight wrong movement.
    - Be it the lack of precision – placing it at the wrong angle.
    - The lack of planning, without looking at the overall stack to see if the fundamentals are firm enough.
    - The speed of the anxious & conceited hand that placed the card.
    You let distractions come to you because you thought you had it already.
    You let the wind in because you thought it wouldn’t matter.
    If either one of the above happens, with one wrong move. You would have caused your whole stack of cards to tumble and fall.
    Do the above scenarios sound familiar?
    This is the same thing that happens to most traders. Traders always forget what got them winning in the first place. They let the same things to happen to them which eventually caused them to lose it all. Even their initial capital.
    Here’s how it relates.
    Be it the lack of precision – placing it at the wrong angle.
    - In forex trading: It could be entering the trade just based on gut feel, no price action confirmation, trading against the main trend.
    The lack of planning – without looking at the overall stack to see if the fundamentals are firm enough.
    - In forex trading: Lack of planning would refer to not planning your stop loss, target profit, money management and risk reward ratio.
    The speed of the anxious & conceited hand that placed the card.
    - In forex trading: It refers to trading psychology and emotions. That’s the key component that caused majority of traders to fail. Greed, fear of loss, getting revenge on the market, afraid of missing a good trade. All this will blind the judgment of a proper trade least say a good trade.
    You let distractions come to you because you thought you had it already.
    - In forex trading: You let lose of your sight on goal, you bit the hand that had feed you. You begin concentrating on other things – other than forex. You begin boasting on how good you are. You watch the tv while placing a trade. Etc.
    Remember: Successful forex trading is mastering all of the above. Its about being consistent on all trades, and not to forget the fundamentals that got you going.
    Look forward to seeing you in our group,
    Ezekiel
    Asia #1 Forex Mentor


  2. #2
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    This analogy given with the Explanations is quite good enough.

    It helps us in understanding how the effects of the single mistake can be cascaded to give a big effect later on. All traders must know this fact that even 1 mistake is not to be done otherwise we will face many losses.


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    Quote Originally Posted by Dominator4fx View Post
    This analogy given with the Explanations is quite good enough.

    It helps us in understanding how the effects of the single mistake can be cascaded to give a big effect later on. All traders must know this fact that even 1 mistake is not to be done otherwise we will face many losses.
    Mistakes must be used as an opportunity for learning and self growth. Time is not far when with this approach you will be able to see which trades are worth doing and which trades we must not do.


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    Quote Originally Posted by UWCNeeraj View Post
    Mistakes must be used as an opportunity for learning and self growth. Time is not far when with this approach you will be able to see which trades are worth doing and which trades we must not do.
    Oh Absolutely. If we didn't learn from our mistakes, or if we quit when we make a mistake we would never ever succeed in the world of trading and in Forex. I think this also applies to anything else worth while in life: If it's valuable then success in it won't come easy.

    Example; a Doctor spends 8 years in education to earn 150,000 euros per year. We Forex traders think we'll be making similar amounts from small accounts with 6 months of training and experience: Highly unlikely!

    Spend time and effort investing into yourself and don't quit when you make a mistake. Don't turn into that house of cards.

    Apply wisdom. Trade with wisdom.

    Wisdom is key.

    I am The Money

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