I have learned the following in the past 2 - 3 weeks. I will share just 2 points for you to chew on.
- Money management was something I neglected in the past. Have you ever experienced making 3 consecutive winning trades, but giving it all back in 1 losing trade. Guess what? It happened to me ALL THE TIME! The loss weighs heavily on my mind - It affects my confidence. I start to doubt my trading strategies, and the next time I want to place a trade, I am afraid to pull the trigger. Now, I keep my lot size fixed for at least 1 month. I know that even if I lose 1 trade, my capital is still intact. Knowing that my capital is safe allows me to trade without much stress.
- Having a good trading Strategy is definitely one of the most important components in our journey to be consistent. Someone recently shared with me that in a range market, you buy low, sell high. And in a trending market, you buy high and sell low. It made a lot of sense. In the past, I am often afraid to buy high, and sell high, for fear that market will suddenly reverse against me. Instead of buying high, I would sell high in a trending market, making it effectively a counter-trend trade. You cannot imagine how many times I have bled money by trading counter-trend trades. So really, the smarter thing to do is to keep things simple in FX trading. Now, I am confident in my trading method because I know it works. Why? Because following the market always work. At the same time, though, I have room for improvement, and I strive to improve everyday.
2 comments:
I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading.
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