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!