This week’s Forex psychology article will be a short one while my family and I cope with the loss of a loved one, or should I say, loved thing. Last Thursday, we returned home from a trip that flew us across half of the U.S. and back. After getting settled and finally deciding to tackle the excitingly fun task of unpacking our bags, we were horrified to find, or rather, not find, one of our most prized possessions… our personal laptop!
We decided early on in the day that the darned thing was too heavy to lug around the airport for hours and hours. Not giving it a second thought, we threw it in our soon-to-be check-in luggage with the rest of our goodies. We had never had any problems with luggage before, so why should we worry.
It was nowhere to be found! Missing… nothing… lost!
We searched again.
Socks and undies…check.
Dirty socks and undies… double-check!
Laptop… no check.
We fell to our knees and began weeping in sadness, and then in anger… anger at ourselves, anger at the situation.
How does the story end? After countless phone calls to each airport we visited, their respective “Lost and Found” departments, and their TSA offices, we were reassured that someone would investigate. In the end, I took these conversations to mean that the laptop was long gone, and that it was time to go shopping. (Please email me if you know of any good laptop online bargains going on)
What can you, the Forex trader, take away from our nightmare (we’re still pinching each other to see if we’ll wake up)?
For one, plan on the fact that your plans will not always go as planned. And don’t assume that because something worked previously that it will have the same outcome. The markets are unpredictable, and you must be ready to move and then jump on opportunities that appear.
Also, accept that you will face loss one way or another. It’s always going to be there. Accept that it’s in the past, and that the past can’t be changed. Move on and learn from the lesson, and then apply it to a future trade or strategy. Don’t get discouraged. It’s the losses that you seem to gain just as much, if not more, knowledge from than as the winners.
Next, create a safe trading environment for yourself by using proper risk management and knowing when it’s time to get back to basics.
Finally, take responsibility for your actions and understand that it is you who creates your success or failure. Don’t blame others around you for your trading losses or failing strategies. Determine your weaknesses and make a true effort to turn those into strengths. Read and study, obtain a mentor or even go back to demo trading!
P.S. Take the bus…