- Hunger for big time victory.
- Misinterpretation of market sentiment and indicators used.
- Living in the pass historical days of glory.
Hunger for big time victory
History had proven many times that some generals got themselves killed or surrendered when in pursue for a major victory rather than to retreat with a minor gain. There are nothing wrong about winning BIG! But there ain't always opportunity for being a BIG TIME WINNER!
In forex market, it works the same. A lot of traders may have experience this before. When they caught one time huge profit with one single entry, they'll look for the same opportunities everyday! They'll hold longer on their position in hope to generate the same
profits as they had before at that "LUCKY" moment which they had experience. It's had being an advised from my husband that there will be a lot of small victories awaits you rather than the major one in a day! If you are thinking of catching one big one so that you can call it a day, then it will be one whole day that you will need to spend just to catch that big one or sometime even NONE!
Do not underestimate the small amount of victory that you have achieve, when you added it up, the contribution can exceed what you are expecting from the BIG one. Not everyday is a holiday anyway!
Misinterpretation of market sentiment and indicators used
Not surprised if I hear you saying "Why the market do not respond to the news or reports that was released?" or "How come the indicators didn't works in the way that I had usually interpret?" Why! Why! Why!
In any war, there are always a combination of different factors that contributed to a victory! Depending on one single factor will not guarantee you success! Same thing like wise, market sentiment can be very different from data or news when it is release. Indicators can have a sudden change in direction that catch you off guard! Such factor is unpredictable, when traders are caught in such a situation, all you have to do is to get out of your position when your stop level is reach to avoid further damage. Do remember to get a rest or stop for a day or two, regroup yourself! Such incident do not occur everyday! Do not have the REVENGE trading attitude!
A minor defeat shouldn't destroy you! But if you believe that market sentiment are always going against you, then it may be you that are the problem! Beware!
Living in the past historical days of glory
How many times have we heard our elderly keep repeating their glory during their young days! Station our memory in those days have blind most of us in seeing what's happening now. Investors, traders or scalpers have different kind of game plan as compared to the previous day! If you are not in the same frequency with them, most likely you are on the wrong track today. It is not difficult to decode their behaviour in the way they play the game, but it will be difficult if you still live in the past and still believe that the old golden rules still apply in today's world.
If you happen that you get defeated by the market today, be a GRACIOUS loser! Admit the mistakes you had made and source for answer! You will be surprised by what you will find!
Like war, forex market is a high-risk venture if you do not keep yourself up to date. Most important of all, you need to have a complete peace of mind in order to perform well. With the support from your loves one may not guarantee you success, but hostility from the closest will definitely result in failure. Do comments if you have anything to share, I will be glad for your contribution! Do visit http://forexoceanview.blogspot.com/ if you wish to know more on technical trading.
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