If you can't keep your emotions in check when trading, you will lose money. Lots of it. Pipsychology was created to help minimize this from happening to you. The most significant action that you can do to improve trading profits is to work on yourself. Really knowing yourself and how you think can give you an edge that others in the market don't have. My goal is to share practical advice to Fail Forward
The difference between losers and winners is their perception of and response to failure.
You must learn from your own trading mistakes and from the mistakes made by other traders.
The biggest mistake you can make is when you can't admit you made a mistake, accept the consequences for making the mistake, and simply close your trade.
What do you do instead?
You let your pride take over and you hang on to the losing trade because you can't admit to yourself that you were wrong.
Pride will lead to huge losses, especially after you've had a nice string of wins and you feel like a trading god.
Swallow your pride and learn to admit when you're wrong and move on to the next trade.
Set your stop loss and never move it backward to give your losing trade "more room" to come back around.
Mistakes should be used a learning experience. Making mistakes is how you learn what works and what doesn't. Just don't make the same mistake twice.
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Archived Comments (1)
Forex Blog: Pipsychology
Thanks for the post. It's true. Nobody wants to lose his money, but if instead of focus in the learning process and as you said learning from mistakes too and accept when you were wrong, it is almost impossible to became successful. What I love the most from trading is that you must be always learning and fighting with your owns fears and bad qualities: pride, greed, impatience, lack of discipline, etc.