Forex Loser’s Checklist, Do You Qualify?
No one likes to think of themselves as a loser. However admitting the reality can be a hard pill to swallow. I came up with this checklist to help you identify your true self. See if you qualify.
- Account Wipe-outs
- Keeping Poor Trading Records
- Urge to Trade
- Switch Trading Systems
- Buy new softwares /EAs
- Double Up Losing Trades
- Reverse and Trade in Opposite Direction
Account Wipe-outs
Did you ever wipe out a trading account? If not, then congratulations, but I hope you do so sooner than later. It sounds strange, however every successful trader at one stage have wiped himself off. Remember those sleepless nights and loss of appetite. Once you been through it, you promise yourself never to repeat it again and learn the most valuable lesson, “Use Stops and Get Stopped”, before a bad trade burns your account completely.
Keeping Poor Trading Records
What were your last ten trades? Do you know how much was the drawdown before they turned into profit? Did you remember how did the chart setup look like?
If you are not saving screenshots and maintaining a spreadsheets of trades then you are most likely to fail. I recommend using MS Office OneNote for keeping screenshots of every trade you take/miss/leave. Analyze every week or month depending on trading frequency and look for common mistakes and recurring patterns.
Urge to Trade
The “Need To Trade” is the biggest challenge for new traders. The constant desire to trade to either meet the goals or fulfill sense of excitement burns their account individually.
I recommend creating a trading plan. Every trade you take mark it down as “Impulse” if it didn’t meet your trading plan. At the end of the month look back and see how many were “Impulse” and their success rate. This will give you a better idea about your own mental process.
This is good, I hope some people will look at this post and see the light.
I agree with your thoughts……. I think that emotion is also somewhere hindrance in our business ….. and if it is related to forex then you have to be much strong where you have take your emotion out from your business…. as competition is very high so you have to give time to understand your business well as it is constantly changing and with change you also have to change your thoughts…….