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 Learn to like losses
As a trader you have to learn how to take losses. Period. Don't be a crybaby. Learn how to take losses.
Learning how to take losses is one of the most important lessons you must learn if you want to survive as a trader. Nobody is 100% right all the time. Losses are inevitable. Even Michael Jordan and Tiger Woods lose sometimes and they're considered the best in their field.
There will be trading streaks where you'll have a number of successful consecutive trades, but that will eventually come to an end you will take a loss.
As that point it's very important not to lose your head, you must remain in control of yourself. Don't have a cow man.
Take a break. Calm down and relax. Take a chill pill dude.
Until you've regained a clear mind and an ability to think logically again, stay out of the market.
Don't whine about your loss and never carry a prejudice against a loss.
The key to manage losses is to cut them quickly before a small loss becomes a large one.
I repeat. The key to manage losses is to cut them quickly before a small loss becomes a large one.
Never ever think that you will never lose. That's just ludicrous. Losses are just like profits, it's all part of the trader's universe.
Losses are unavoidable. Get over the loss and move on to the next trade.
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Forex Blog: Pipsychology
Funny this is published today after I suffered a 30 pip loss and was lying in bed very upset. :( Good article though.
Funny this is published today after I suffered a 30 pip loss and was lying in bed very upset. :( Good article though.
WHAT WOULD YOU KNOW ABOUT IT ?
I'm 78,000 shares down in Fannie Mae !!
Whaaaaa !!! Whaaaaa!!!
[Sob, Sob. ]
an... and... don't even ASK me about my shares of Freddie.
Not getting mad about losses has been the single most important lesson I've learned over the last year of trading forex. I'm naturally a very competitive person, and I don't take losses easily. As a result, I made some very stupid trades based on emotion immediately after suffering losses, and as a result threw good money after bad.
You'll never make money in ANY business if you lose your head over losses. People who excel don't like losses, but they do learn to accept them as inevitable experiences that they can learn from.
Why double your exposure to risk being long in both Fannie and Freddie??
If I had reversed my position instead of sitting in total consternation and paralysis I could have hit 100% instead of 75%. Stiff-necked and too proud to admit a mistake I let this go on for hours. I was fortunate to have the other three trades stay straight while in my mental coma over this bias.
Obsolutely very-very true. I have paid my due. I paid $2,000 fee in real trade 2 position without stop Loss. Then only I learn how to take loss and make Stop Loss as compulsory habit even before entry any position.
Actually this blog seems one of the blogs i like because i learned something from this blog. The thing that can be applied on each and everyone`s life.We should learned to loose someone because loosing somebody or something can make us freedom. I know and i do believe that it is hard to do but the fact is,we don`t have any choices but to loose or to dissolved them.Thanks for your blog.