What's your experience in the business?
What's your experience in the business?
Again I admire How Wise U are Master
The most important things U share it with other to let them not to do the same mistakes as U made, which just like we have a guidance book forex based on field experiences.. All traders had the experiences just like what U have described exactly..
I post one of my lost here, when I got too confident with my analysis, besides the market moves on the contra direction, emotional is the most difficult things to be managed
I think if traders acknowledge the fact that 90% of traders fail and take that seriously, they're less likely to be one of those who falls into the 90% as they will treat trading with the respect that it deserves.
Taking losses is part of trading, everybody HAS to take losses. But the question is, what do most people do with their loss? Not a lot, that's the answer.
I believe you should analyse each individual loss you have made; sit down and think about why it didn't go according to plan and analyse it to see if you made any mistakes, and how you can improve in future trades.
The goal of this exercise is to slowly but surely increase your trading ability and slowly but surely increase the probability of each and every trade you make.
When we have losses in our trading account, the pain we feel is almost passive compared to the pain we would feel if we were holding the cash in our hands and had to hand it out to random people, $10 at a time. Think about it; when you lose $600USD, it's the same as standing out in the street and having to give out 60 (sixty) $10 bills. Painful!
Then again, on the other side of the coin, some people have strategies where their stops are much larger than their wins, but the percentage of trades they win may be 9 out of 10.
That's what makes trading such a fantastic business; we can do it how we want, and use a strategy which suits us. What works for me may not work for you, and my way of analysis may not sit well with someone else.
I posted this in the GBP/USD thread but I thought it is useful enough to post in here:
Welcome to a new week of trading everybody! It's a big week this week with a few big events on the cards:
1. BOE Minutes
2. The FED has a two day meeting in which they'll discuss operation 'twist'
3. FED interest rates on Tues (which will be the same)
This will be a very important meeting in that decisions will be made on what the possibility of further Quantitative Easing in the UK will be. Further QE will obviously weaken the £ (More pounds in market means each pound is worth less).
Short term, the British economy has more tools at its disposal to inject fresh life into the economy - Therefore short and medium term the British pound is likely to be a solid currency to invest in. In that scenario, the price of GBP/USD will go up.
Long term, questions have to be asked about the sovereign debt which the UK has. Many economists believe that the only way out of this debt hole long term is a default; however this default could be done in many different ways including currency devaluation and inflation. Whatever the solution, long term the GBP looks like it will weaken across the board.
The FED's Two Day Meeting
This is also a very important meeting which will shine fresh light on the direction which the FED will take.
The FED has promised it will keep interest rates low; but with the volume of quantitative easing there is the problem of inflation. The obvious solution to lower inflation is to increase interest rates. This is where operation Twist comes in. Operation twist is based on buying a lot of long term bonds in an effort to keep interest rates low for a prolonged period of time. This could see a 50 year bond being made. The FED may buy up close to $500 million + which would push the 10 year yield to as low as 1.6%.
FED Interest Rates
This will be the kept same; so even though it's important move, don't expect any major price movements from it.
Week Ahead Outlook
Well, with all that being said, I think the GBP could strengthen this week up into the low 1.60's. If things don't pan out as I'm currently thinking, I'm definitely ready to alter my analysis.
There is a brilliant report from the Financial Times on the world economy which I suggest every who is serious in investing or trading has a read of. See the link below.
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