|
| |
 | |
|
|
Currency Trading Information Channel |
 |
|
|
| |
|
| |
|
|
Currency Trading Information Channel |
|
|
|
|
|
Stopping YourselfI read on a bulletin board a traders comment that on his first outing trading the E-Mini S&P 500 he lost on each of his trades. He noted though, that had he had a wider stop each of his trades would have been profitable and that therefore he would be trading with a wider stop in future. A wider stop on these particular trades may have worked, but this does not mean that a wider stop per se is the answer. In fact, everyday there is the possibility of any given trade going into profit if given enough room, but that does not a wise strategy make. This trader was a seller in a market that subsequently went down; hence he could see that had he given his position a bit more room he would have made a handsome profit. Unless this trader has the ability to always accurately predict the direction of the market he is going to experience days where he is wrong and the market goes against him, in which case his potential for loss with wider stops is greater. When deciding an appropriate amount to risk on any trade (i.e. size of stop) a trader has to consider more than the potential profit on a particular trade on a particular day. What this trader was saying to himself was 'If I had a 3 point stop instead of a 1 point stop, I could have made 15 points; therefore I will always use a 3 point stop!' Partly what he was saying to himself was 'I was right!' But he wasn't right; in the time frame of his trades and within the risk limit of those trades he was wrong, his timing was off and that is what he needs to work on. He is also making two assumptions: 1) That having a bigger stop and therefore bigger open losses will not affect his trading composure and performance (how do you feel if you are risking $10?? $100?? $1000?? $10,000?) 2) That he would have held on to his profitable trade until he gets an exit signal (it is easy to assume after the event that we would have got out at the very best moment) The truth is we are all much weaker than we would like to assume. The biggest challenge to profitable trading is sticking to our own self-imposed loss limits, be they on a per-day or a per-trade basis. What this trader did on this day was stick to his limits, which is highly commendable; he was just having difficulty accepting his results. No one likes losing money and no one like being wrong, but to be successful in trading we have to be accepting of both. Malcolm Robinson
 MORE RESOURCES updated Mon. August / 15 / 2022More super funds calling for speciality currency exchange services Investment Magazine Why currency trading involves major risks Nairametrics Crypto as retirement strategy talkbusiness.net Why so many Nigerians lose money in currency trading Nairametrics Standard Chartered banks on carbon trading amid muddy second-half outlook - South China Morning Post Standard Chartered banks on carbon trading amid muddy second-half outlook South China Morning Post AUD/USD: A fundamental story FXStreet Trading Support and Resistance – AUD/JPY, EUR/USD, GBP/USD DailyForex.com Websites close 12,000 accounts encouraging illicit virtual currency trading amid crackdown Global Times Wall Street headed for 4-week streak of gains Yakima Herald-Republic Cuba Increases Official Exchange Rate For U.S. Dollars Cigar Aficionado Do Good Traders Vary Bet Size? Forex Factory Hundreds of Pinoys learn new trading techniques The Manila Times 6 Forex trading myths | The Guardian Nigeria News - Nigeria and World News — Features Guardian Nigeria What is a Bitcoin Trading Bot? THISDAY Newspapers Hyundai ranks 3rd in global vehicle sales in 2022 1st half Investing.com India Rupee to stay the gaining course on IMF optimism The News International USD/CAD: Plenty of Punch and Choppy Results Testing Traders DailyForex.com Weekly Forex Forecast - EUR/USD, GBP/USD, AUD/USD, USD/JPY DailyForex.com Reliance Industries celebrates the joy of Independence Investing.com India 10 Best Forex Brokers in 2022: Top 10 FX Trading Platform Reviewed and Ranked ABC Action News Tampa Bay AUD/USD Forex Signal: New Falling Price Channel DailyForex.com Crypto Trading, Investing Illegal in Iran, Central Bank Governor Reiterates – Regulation Bitcoin News Bitcoin News What Is Forex Trading? Bankrate.com Basics of Forex Trading - Part 1 FX Empire USD/JPY Technical Analysis: Breaking Upward Trend DailyForex.com USD/JPY Forecast: USD Finds Buyers Against the Japanese Yen DailyForex.com BTC/USD Forecast: Bitcoin Gives Up Early Gains For the Day DailyForex.com Best Forex Trading Platforms: Most Famous Forex Brokers & Traders of 2021 Washington City Paper What are the Pros and Cons of Forex Trading? RealtyBizNews What is forex trading and how does it work? The European Sting 4 Ways COVID Boosted Currency Trading Yonkers Tribune. 10 Best Forex Brokers for August 2022 Business 2 Community Forex (Foreign Exchange) Explained | U.S. News U.S News & World Report Money How to Know Which Currency Pair to Trade Startup.info Changing the Top Global Currency Means Changing the Patterns of Global Trade Carnegie Endowment for International Peace Moscow Limits Foreign-Currency Trading to Shore Up Struggling Ruble The Wall Street Journal Bank of America Grows its Global Foreign Exchange and Emerging Markets Macro Trading Team Bank of America Newsroom Can You Make Money Trading Forex? Finance Monthly Foreign currency trading is substantially growing around the world - The Southern Maryland Chronicle Foreign currency trading is substantially growing around the world The Southern Maryland Chronicle Currency Definition | U.S. News U.S News & World Report Money Why forex trading is not gambling Nairametrics The 5 Best Forex Trading Platforms of 2021 D Magazine Best books to learn Forex Trading from scratch Free Press Journal Is forex trading a way to make a living? Nairametrics How to Trade Forex with $100 Yahoo Finance BC: Tips for Success in Forex Trading Punch Newspapers Forex Trading TD Ameritrade Currency trading in overdrive with dollar at highest level in two decades (NYSEARCA:UUP) Seeking Alpha How to Trade Forex TD Ameritrade Mastering Forex Trading Psychology Finance Magnates Trading Forex vs Futures: Key Differences IG International The 6 Best Online Forex Trading Classes of 2022 Investopedia Even the Foreign-Exchange Market Is Getting Kind of Crazy The Wall Street Journal
|
