It’s Not the Size of the Fish But… Oh, Wait

During my very early days of currency trading my mind was running wild with the ideas and dreams of what I was going to do with my soon-to-arrive riches. Sound familiar? But I wasn’t dreaming of a dollar here or a dollar there, but some serious cash money. I knew that I only needed a few monster winning trades to help me realize my then fantasies, and then the world was for my taking! Muuu-haha, muu-haha, muu-haha (imagine Dr.Evil/Austin Powers laughing).

Big trades weren’t going to be easy or commonplace, I knew this. If they were, then everybody and their mothers would be here trading right along side me. And they weren’t. So, I’d have to wait and be patient, and watch for the right signals and listen for that one hot tip. And then BAM! I’d get in low, wait for price to skyrocket, and then get out just before the masses new what hit them. SO EASY…

But did it happen that way? No.

And does it usually happen that way. Well, for a few, yes. But for the rest us (and the more common), of course not.

But who doesn’t dream of being in the right place at the right time? Who doesn’t dream of that rare elephant-sized gain? Again, it’s normal and wishful, but not always realistic. Sure, yearning for that winning opportunity will motivate a trader to build his skill in hopes of becoming a trading master. But it’s not going to be that rare trade that he waits forever for that transforms him into a profitable trader. For the most part, a trader’s success will be defined by the many smaller, almost “boring”, winning trades that are made and hopefully become regular. Although small profits, they are just as significant as the larger and more thrilling trades.

It’s often times never realized that the many smaller trades provide just as much if not more to a new trader than a big win that hits only once every third full moon. Many novice traders make the small trades one after another with no real gains to show.

One pip here, six pips there… and so on.

They feel they’ve hit a level of experience that just can’t be surpassed by making these small moves. But no matter how petite the trade, each trade provides another examination of the market and another test of the strategy and trader’s skill. These trades all provide a new insight that ultimately aids in gaining more market experience and adding to that bag of knowledge.

Whether it’s finally learning to identity a particular candlestick pattern and then better forecasting a price move to being risk-conscious by always placing a stop, the small experiences we have and learn along the way matter a great deal.

We all know that currency trading can be difficult, requiring various levels of commitment, whether financial, physical or mental. Many novice traders give up earlier after being smacked in face (figuratively), but there are those who make it. The surviving traders are still there because they have their systems in place; they’re cool, calm and collect when dealing with the market and its uncertainties. They stay focused on their plan or strategy and they stay away from the risky and unrealistic trades and profit goals. They understand the risks involved with each position they take, and that losses are inevitable, but they look for the high profitability trades with minimized risk. It’s always a calculated move, not driven my emotion. Now, it may not be World Cup type action, but the small profits are there. In the end, the many smalls add up to a very big.

Don’t get disheartened if you feel you aren’t progressing as you should be. Stay focused on making profits, no matter how small they are. You want to keep the capital on the positive side and continue to be able to make trades. That’s the important part. You add more to your bag of knowledge when you’re actually acting, and making a real trade. In the beginning, profits may not exist or may be small, but remember that a single pip gain is still a gain. And not a loss!

  • DMI

    Great post, should probably read this every day before trading.

  • DMI

    Great post, should probably read this every day before trading.

  • NEWMAN07

    Good write up, well don1!!!!.A ton thanks for your words of encouragement. I want to encourage you to keep up the good work and more pips to you pocket. one love!!!!!

  • NEWMAN07

    Good write up, well don1!!!!.A ton thanks for your words of encouragement. I want to encourage you to keep up the good work and more pips to you pocket. one love!!!!!

  • king

    Excellent words of encouragement. I dare to say that you do a whole lot of good than you are probably aware of. You are a builder, builders are great. Many thanks.

  • king

    Excellent words of encouragement. I dare to say that you do a whole lot of good than you are probably aware of. You are a builder, builders are great. Many thanks.

  • Elroch

    It might be worth mentioning that many professional traders also make a pip here and a few pips there and do all right (Paul Rotter springs to mind). But you certainly need a good edge to beat the cost of trading on that scale – most people would be simply bled dry by the spread.

  • Elroch

    It might be worth mentioning that many professional traders also make a pip here and a few pips there and do all right (Paul Rotter springs to mind). But you certainly need a good edge to beat the cost of trading on that scale – most people would be simply bled dry by the spread.

  • Mr-Pipa

    I was thinking on stop trading after at least getting back all the money lost during the past few days. All preparation and reading and successful practice rounds did not lead me to the expected easy richness. But now I know that experience comes from experiment. Thank you for making me remember that. I will be one of the survivors I just gotta keep working.

  • Mr-Pipa

    I was thinking on stop trading after at least getting back all the money lost during the past few days. All preparation and reading and successful practice rounds did not lead me to the expected easy richness. But now I know that experience comes from experiment. Thank you for making me remember that. I will be one of the survivors I just gotta keep working.

  • cdkifli

    YOU ARE RIGHT!!!!!!

  • cdkifli

    YOU ARE RIGHT!!!!!!

  • PipWolf

    Once again with the wisdom. Are you really Yoda in disguise?

  • PipWolf

    Once again with the wisdom. Are you really Yoda in disguise?

  • osbabafemi

    Great and encouraging piece especially for beginners

  • osbabafemi

    Great and encouraging piece especially for beginners

  • Inlike

    Very true and spot on.

  • Inlike

    Very true and spot on.

  • GBLilleyUSMC

    Absolutely, I think all of this can be summarized by saying that a batter makes his living on singles and doubles, not home runs.

  • GBLilleyUSMC

    Absolutely, I think all of this can be summarized by saying that a batter makes his living on singles and doubles, not home runs.

  • manjot_3119

    great post, very much what the professionals tell all the newbies to do and they find it boring but what we do understand from above is three most imp things.
    1. patience
    2. super money management
    3. please put the greedy tongue back in :):)

  • manjot_3119

    great post, very much what the professionals tell all the newbies to do and they find it boring but what we do understand from above is three most imp things.
    1. patience
    2. super money management
    3. please put the greedy tongue back in :):)

  • gerrydee

    Thank you for reminding me of the baby steps, fight on through adversity, be ready to be a loser. The next trade could be the turn-around.

  • gerrydee

    Thank you for reminding me of the baby steps, fight on through adversity, be ready to be a loser. The next trade could be the turn-around.

  • GREAT

    am a new trader, last week, i made 200pips from monday 2 wednesday than on thusday i lost all of them. which i became anoryed. so thanks 4 your encouragement. keep the the good work going.

  • GREAT

    am a new trader, last week, i made 200pips from monday 2 wednesday than on thusday i lost all of them. which i became anoryed. so thanks 4 your encouragement. keep the the good work going.