Resolved Question
Confidence Shot - Need help
I've had a very good track record until I made some bad trades and my confidence was shot. Trading has never been the same. Any advice, insight on how to deal with bad trades is appreciated.
over 2 years ago
Best Answer - Chosen by Voters
Before i make my comment,one thing i'll let you know is that nobody can predict exactly where the market will go.we are all irrational traders.unfortunately there is no limit to how irrational traders can act.if someone tells you the market will hit a jackpot when it gets to a certain level,just treat that forcast as a massive grains of salt.because that person is telling you he knows exactly what is going on in the brains of different traders.your trading system might be bad today,that doesn't mean it is not the best.because you can't win all the time&you can't loss forever.many trading systems always fail after a major news announcement.sometimes a major news announcement will shot pass a strong technical level.that is why i don't trade right before schedule&unschedule major news announcement.wel,if your trading system works on only one currency pair with only one time frame am scared it may not work for long.but if it has an edge over very large sample of trades it will work for long.this is not a guaranty that what makes money will always make money but it is alot better than nothing.let me call your attention back again,your trading system will loss once it loss accept it bravely because it doesn't mean it is bad.try to develop the current trading system.dont aboundon it&set foundation for another system.
over 2 years ago
Answers (5)
This is a tough one, and you will get a lot of different answers... Try reducing risk exposure when you start losing. Just like in sports, when a player is "cold", the coach lets him sit on the bench for a while. If you risk 2% per trade, what you can do is cut down on your risk by 0.2% every time you lose a trade. Now, if you win, you increase your risk by 0.2% again but never ever go beyond your maximum 2% risk. I find this method a good way to get back my confidence and build up momentum when winning and cut down on losses when winning. I hope that helps.
over 2 years ago
* You must be logged in to add comments. Sign In or Join Askpips.com.
Sometimes, when a trader is in a slump, he tends to keep making mistakes without realizing it. This compounds the mistakes, which causes more stress and leaves you in a state of mind where you should not be trading since you aren't thinking and analyzing as you normally would. I suggest taking a step away from the charts and taking the time to relax and do something you enjoy. This can help clear your mind and help you refocus, allowing you to get back in sync with the markets. Hope this helps!
over 2 years ago
* You must be logged in to add comments. Sign In or Join Askpips.com.
Well, I gotta say I did experience losing my confidence for a long while and it affected my trades really bad. What helped me overcome that phase was a couple of good reads. I read some trading psychology books at that time, namely Brett Steenbarger's Enhancing Trader Performance and Mark Douglas' Trading in the Zone. The insights from those books were very motivating and they helped me get back on my feet and improve on my trading.
over 2 years ago
* You must be logged in to add comments. Sign In or Join Askpips.com.
It's doubtful that your problem is going to answered with a number of keystrokes and a few clicks of the mouse by a well meaning member of this forum. And I very much doubt that you understand how to read price, because if you did, these so called "bad trades" would not have occurred. If you're interested in learning how to read or understand price, let me know.
over 2 years ago
* You must be logged in to add comments. Sign In or Join Askpips.com.
Sometimes it also helps to have a break from forex trading! Do something fun, play basketball, watch a movie or whatever it is that you want to do to save yourself from the stress of forex trading. Once you're refreshed then you'll be in a better position to trade again.
over 2 years ago
* You must be logged in to add comments. Sign In or Join Askpips.com.
* You must be logged in to add comments. Sign In or Join Askpips.com.