100% Responsibility

As with any other endeavor in life, as a trader, you are the only one responsible for your decisions and actions. You’ll not only have to live with the consequences of the decisions that you made, but they may even affect others (e.g., family, friends, trading partners, etc.)

It doesn’t matter as much whether you end up being right or wrong (profitable or not), what matters is that you understand and accept the consequence of the decision, and how you react to it.

When I trade Forex, I know that there are only two outcomes: a gain or a loss. And I’m mentally prepared for both beforehand.

If you can’t accept the responsibility for your own actions then you should not be in the market to begin with. Trading isn’t for irresponsible boys and girls, but for disciplined men and women.

Put in the work, rely on your own effort and draw your own conclusions as to how you want to engage the market. There’s nothing wrong with listening to other peoples’ advice, but you–and only you–will make the final decision. Never let someone else make your decisions for you.

Now why do some traders instantly turn to someone else when their trades go bad?

It’s human nature to shift the blame to someone, or something, else to relieve some of the psychological pain caused by a mistake or loss. Don’t do it because pain is good. It lets you know when something is wrong, which will hopefully force you to adjust, adapt and avoid the mistake that caused the pain in the future. Surviving the pain will make you more focused and resilient.

So, don’t be afraid of your losses and mistakes–accept, own and learn from them. Review and reflect on your performance through the most important trading task of trade journaling. Through this process, you’ll make your own decisions and accept 100% responsibility for them. Only then will you become a real trader.

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  • ThePhoenix

    Excellent post. So many new traders over look this. They right away try to rely on trading from signals given out from a wannabe guru or try to use some EA that guaranteed to have X% win rate.

    A: decide the possible outcome (s).
    B: Accept the fact that you may be wrong as a very real probability.
    C: Accept the risk or don’t trade.
    D: If the trade does win, take profit early, don’t hold on for more than you planned. Don’t let euphoria make you greedy and turn a win into a loss, while holding on for more.

    I think a saying my kenpo karate master used to tell me about being in a fight:

    “If you get in a fist fight expect to be punched in the face. IF you get in a knife fight expect to be knifed. If you get a gun fight expect to be shot….

    Why? That way when it happens you are mentally prepared. You won’t roll up into a fetal position and cry. Even though you are wounded you can keep your wits about you and keep fighting for your life. You expected the worst to happen, so your little ego isn’t crushed.

    Or, another way of saying this from a samuraii battle mindset: “I am already dead, therefore in no danger of death, there is nothing to lose.”………..the risk of the battle is already assumed to have happened and been accepted unconditionally. The worry about the risk doesn’t interfere with performance.

  • gthedrum

    Awesome post and great comment by ThePhoenix. Love the samuraii comparison.

  • drpipslow

    Nice comment ThePhoenix. Obviously your kempo karate master isn’t Chuck Norris. When Chuck Norris gets in a fist fight, the only person who expects to get punched in the face is his opponent. Chuck Norris can delete the recycle bin. :)

  • ThePhoenix

    Excellent post. So many new traders over look this. They right away try to rely on trading from signals given out from a wannabe guru or try to use some EA that guaranteed to have X% win rate.

    A: decide the possible outcome (s).
    B: Accept the fact that you may be wrong as a very real probability.
    C: Accept the risk or don’t trade.
    D: If the trade does win, take profit early, don’t hold on for more than you planned. Don’t let euphoria make you greedy and turn a win into a loss, while holding on for more.

    I think a saying my kenpo karate master used to tell me about being in a fight:

    “If you get in a fist fight expect to be punched in the face. IF you get in a knife fight expect to be knifed. If you get a gun fight expect to be shot….

    Why? That way when it happens you are mentally prepared. You won’t roll up into a fetal position and cry. Even though you are wounded you can keep your wits about you and keep fighting for your life. You expected the worst to happen, so your little ego isn’t crushed.

    Or, another way of saying this from a samuraii battle mindset: “I am already dead, therefore in no danger of death, there is nothing to lose.”………..the risk of the battle is already assumed to have happened and been accepted unconditionally. The worry about the risk doesn’t interfere with performance.

  • gthedrum

    Awesome post and great comment by ThePhoenix. Love the samuraii comparison.

  • doggie01

    Thank you Dr. Pipslow

  • petaganayr

    Dugg for Chuck Norris.

  • drpipslow

    Nice comment ThePhoenix. Obviously your kempo karate master isn’t Chuck Norris. When Chuck Norris gets in a fist fight, the only person who expects to get punched in the face is his opponent. Chuck Norris can delete the recycle bin. :)

  • doggie01

    Thank you Dr. Pipslow

  • petaganayr

    Dugg for Chuck Norris.

  • Rawtid

    Thank you Dr. Pipslow thats some firm advice.

  • Rawtid

    Thank you Dr. Pipslow thats some firm advice.

  • macleod77

    Thanks, Dr. Pipslow!!
    learning the psychology of trading was the biggest hurdle to my success. Since we’re talking Chuck Norris, here are a few
    “Chuck Forex Facts”

    Risk Aversion has been officially changed to “Chuck Norris Aversion” since its impossible to trade against him….and live.

    Furthermore, Chuck Norris can Borrow Aussies & Lend Yen, and still make %100,000 profit annually.

    Lastly, the CHN/USD (Chuck Norris/US Dollar) is currently valued at 456,678,012.1154/1 with a spread of .00000001 pips.

    just so you know.

  • macleod77

    Thanks, Dr. Pipslow!!
    learning the psychology of trading was the biggest hurdle to my success. Since we’re talking Chuck Norris, here are a few
    “Chuck Forex Facts”

    Risk Aversion has been officially changed to “Chuck Norris Aversion” since its impossible to trade against him….and live.

    Furthermore, Chuck Norris can Borrow Aussies & Lend Yen, and still make %100,000 profit annually.

    Lastly, the CHN/USD (Chuck Norris/US Dollar) is currently valued at 456,678,012.1154/1 with a spread of .00000001 pips.

    just so you know.

  • drpipslow

    Hahaha! Nice ones macleod77. =D

  • drpipslow

    Hahaha! Nice ones macleod77. =D