Friday, 27 May 2016

TRADING PSYCHOLOGY - EACH TRADE HAS NOTHING TO DO WITH THE OTHER TRADE

One of the lesson I've learned during my struggling days of trading, that no matter how good is your system, no matter how high is the percentage of winning, each trade is unique.

So therefore when we follow our trade plan or rules, the outcome will not be the same with other trades.

So every time we win on our trade, move on and move to the next trade, but this should not blind us that the next trade has different outcome from the previous trade, even though the results is always a winning streak.

We are anticipating the market but we are not predicting it.
We anticipate the market based on high probability set ups it produce from the previous testing or back-testing, but this does not guarantees us that every time we trade we will have an expectation on what will be the outcome.

EXPECTATION WILL DESTROY EVERYTHING.
It will create greed, create fear, create excitement and this characters are deadly to the traders.

If the market moves in our favor we must know hot to handle the situation, just like in my case if the market moves 30pips above I will move the Stoploss on break-even, because my goal or rule is to have a risk-free trade first. Then trailing aggressively as the price moves further in our favor.

My rules are easy to follow so that it will not create conflict in different market situations.

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