How To Bounce Back From Trading Losses

Trading is an interesting profession and has no peak as in other occupations. It is in fact an endless journey of discovery of oneself and trading itself. Trading for me at beginning was very tough not that I was not successful in other endeavours but i took it like every beginner thinking that it was easy. With this perception, i approached trading without a plan or proper trading education on how the market works. What do you expect? Your guess is as good as mind. It was a total disaster after taking many losses; i was almost psychologically blown a way. At this stage, two important things happened to me, my P&L was in the red and i was down emotionally.

 


My worst loss that stands out in all my losses was a trade i took (short EURUSD) in anticipation of French Referendum thinking that it would be in favour of the European Union but alas I got a margin call after the result was negative. Please do not ask me about a stop loss i did put a stop loss but i later removed it because i was so confident it was going to be a winning trade.Hey, can't you understand. I have been declaring losses so i thought this time around i would take a large position and cover all my losses. I was subsequently charged to court (trading), tried and found guilty (for losses).Punishment, six months without trading. While serving my term i embraced trading education especially technical analysis and trading psychology. So when I got a handle of certain strategies applying technical analysis and trading psychology i started trading again but not without losses but i followed my trading plan anyway and things improved especially when i became comfortable with losses as expenses in the business of trading.

Valuable Lessons/Tips
Never Trade Without A Trading Education-acquire proper trading education because the knowledge through trial and error in the market can be more expensive and time consuming than the normal trading education

Never Trade Without A Plan
Having a trading plan is a most in this business if you want to succeed. This plan most specify and predetermine your entries,exits,stop loss, position size and your psychology(your emotion at the time you click enter).There could be more you could have on your plan but the most important thing is that you must follow it, because when you follow your plan you have a chance of succeeding in trading. You may be tempted to say do I have to follow this damn plan everyday, just go to a near by Airport and observe what pilots do everyday; they follow their flight plan and check each one before taking off. He can as well say, i feel better flying without my plan today because I do it everytime.That you know my friend will be disastrous.

Do Not Be Smarter Than Your Emotion
What do traders do when they are tired? They wait for an opportunity instead of turning off their computers and call it a day they stay on waiting to initiate a position and when the trade turns out to be a loser they become angry adding to the tiredness.Hey,you know what, you can not win at trading if you are not in your right frame of mind. If you have problems with your spouse please do not trade, if you have a string of losses do not trade, take some time off and go over your losses until you know what went wrong before you can put on another trade. If any thing occupies your mind apart from the market and following your trading plan when you are ready to trade, do all you can to resolve it before you start trading for the day. If you cannot, go golfing.

Cut Your Losses Shut And Let Your Winners Run
This one sounds familiar,right.The professionals do exactly as is stated here but what do novice traders do? They do the opposite by letting their losses run and cutting their winners shut. In other words, they are patient with their losses and impatient with their winners thinking that their positions would come back. The hard truth is the market does not know whether you are winning or losing. It will go wherever it wants to go and do what it has been doing, which is moving up, down and sideways. It is now left to you to find opportunities within these up moves and down moves.

Becoming A Professional Trader Takes Time
This might sound funny. Do not ask any trader to tell you how many years it will take you to become a professional/experience trader. The truth is that real professional traders know that the education of a trader never ends. It is ongoing because market is not static, it changes so if you think you have acquired enough trading knowledge and market conditions change and you cannot cope with the changes you automatically become a learner. The fastest way to become a good trader is to learn from the professional traders (their strategies and how they apply them) taking into consideration your own psychological make up.


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Posted By melvinjones : 29 September, 2020
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I have been wanting to share with you my short experience with Elliott Wave for several days. I was not actually becoming a person of lazy nature. Today I thought I would write it down.   First of all, I share the experience with Fibonacci, Fibonacci is very well connected with Elliott Wave. I used to read a lot of science fiction as a child. Probably the first thing I found in any of Jafar Iqbal's books was the Fibonacci number. A very simple series whose number will be the sum of the previous 2 numbers.   Well, now I am a little surprised, everyone. Well, have you ever found the ratio of the length of the wrist and the rest of your hand while folding? The ratio of large numbers to small numbers will be close to 1.619. Who is called the GOLDEN RATIO.   Surely you've heard of Leonardo da Vinci's Mona Lisa or The Last Supper? If I say that this ratio has been accepted there. How the value of the ratio is 1.619 is actually understood through an equation. If you search on the net, you will find it and if you have difficulty in understanding, tell me. A number is an irrational number like pi. After the decimal, you will be able to calculate for eternity and will not get the repetition of any number or series.   I was talking about Fibonacci. Now let's see if this golden ratio has anything in common with Fibonacci? Well, you see 55 divided by 34 or 89 divided by 55 or 144 divided by 89 ... The most interesting thing is that you see 1.619 .... coming up. Available.   Well, then what happens if 69 is divided by its previous number? you mean 89/34? Not like 2.618. Yes, that's right!This time let's divide 89 by its previous number. What happens? you mean 89/21? Is it like 4.236? Why can't I go before 89? So what happens if the number after 89 is divided by 144? You mean 89/144? Oh 0.617The next number after 89 divided by 233 is 0.3791Well, what is the average of 0.618 and 0.3791? 0.50And what happens if 89 is divided by its next number? 89/38? 0.2360Do you know who publishes these numbers as a percentage?23.6, 36.2, 50.0, 61.8, 161.8, 261.8, 423.7.These numbers are not our Fibonacci level !!!: o   So if we pull the Fibonacci level we accept that the movement of the price is changing according to the Fibonacci number. And if that is the case then if we break the 61.7 resistance we can assume that the price will follow the 50.0 resistance and act as the 61.8 support.   I know this is very easy to understand, there is no need to know so much. But I was wondering why these fib levels would act as support and resistance. I was very happy to understand. Even if someone likes it so much, it is successful.   I'm trying to write about Elliott Wave. Elliott Wave seems very interesting to me. There is still some reading to be done on the corrective waves.

Binary options are a good way to make easy money. You use the knowledge you already have of companies, economies, currencies, and commodities to predict whether the option price will go up or down. If you’re right, you could increase the value of your investment by up to 95%. And because binary options have a short time to maturity, it is easy to make multiple profitable trades per day. Even if binary trading is banned or regulated in many countries, Binary Options Trading Online in 2020 will continue to help many peoples to make money online.     For those of you who aren’t familiar with binary options, let me give a quick explanation. The reason why it is called binary is that the word binary means you only have 2 choices. When talking about binary options it means you only have to worry about 2 choices. You choose up or down regardless of how much up or how much down trade will go. Binary options are very simple, they are basically bets on whether a specific stock commodity or currency will go up or down. If you think the price will go up, you place a call. If you think the price will go down, you buy a put.All binary options last for the same length of time and it’s up to you to determine how long it lasts. There are different durations to choose from such as a minute, an hour, one day, one week or even longer depending on the broker. But regardless of how long it lasts, the time when it ends is called the expiration. The easiest and most popular type of binary option is a bet that the price will be higher or lower than certain reference prices at its expiration. The formal name for this reference price is the strike price.Now here’s a very important point that you need to understand. If you’re correct about the prediction made, you will win whether the price is a hundred points or only one point from the strike price when the option expires. This is because up is up and down is down regardless of how much. Because binary options are so easy to trade they have become popular worldwide, particularly as binary options no deposit bonuses gained popularity.


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