Monday, 9 May 2016

TRADING PSYCHOLOGY - IT'S NOT ABOUT ONE TRADE, IT'S ABOUT MANY TRADES

One of the lesson that I learned is that I have to trade many trades before I evaluate my performance.

Before when I was starting after one or two loss in trading i immediately get frustrated in the outcome of my trade. Then will blame the system and look for another system that I believe must work 100% all the time.

I want to share my performance experience in my parabolic sar trading system. From January 2016 to April 2016 i have an average win of 65%. And you know what the least performing month is April 2016.
It's only about 50% winning percentage.

But to my surprise if I will count pips on each month, it was the highest points of all.
Eventhough it has low winning percentage, since I use good risk reward ratio if the system works in favor of the market, it reap off good profits.

This shows how important is journaling, I learned to love losses in trading. One of the mistakes of a new trader is that they believe that being consistently profitable in trading means trading at 100%  correct.

Trading is winning and lossing. The main point here is how much did you earn when you wom, and how much did lost when you loose.

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