![]() So, even if you think you have found the “Holy Grail” of forecasting methods, chances are you have barely scratched the surface. The psychological strength to stick to the plan, even when the situation is not going as good as he desires.Ĭontrolling yourself is the final and most difficult part of the journey to trading success. These are the things our trader still lacks. What went wrong?ĭiscipline, self-control, emotion control, patience. He correctly managed to predict what was going to happen and yet again, it all ended with another small loss. He is missing out on all the profits and anger grows inside of him. ![]() Soon after that, prices start moving away from where his stop-loss was and towards his target level. So he exits the trade with a small loss, while his forecast is still valid. Success Iceberg Poster or Canvas Wall Art, Inspirational Home Office Art Print, Successful Entrepreneur Wall Decor, Motivational Gym Quote. I made a mistake, the forecast is wrong” is what he now thinks. Impatience and anxiety are taking over him. His stop order is still far away, but the price is slowly moving towards it. But once in, he feels things are not going according to plan. He is able to identify the stop-loss and target levels and know where to open the position. He is now able to recognize a good trading opportunity, which offers him a good risk/reward ratio. However, he still does not get the results he wants, because having a plan is one thing, but following the plan is a whole different story. He is also good at managing the risk and his balance. Risk and money management is all about building your own set of rules, in order to take advantage of the successful trades and not allow the unsuccessful ones to ruin your account.Ī couple of years later, our hero trader is a great analyst. The will to ignore a good-looking trading setup, because of the greater risk that comes with it. The ability to limit your losses and let the profits run. Most inexperienced traders start searching for “the best” analytical method, the so-called “Holy Grail”, without realizing that the real problem is hiding somewhere else.Īnd that is where risk management and money management come to the stage. tags: comprises, iceberg, is-like, nobody, see, success, work. It might give you even 80% success rate at times, but if the other 20% cost you all that you have earned by then, you are not going anywhere. ![]() Trouble is, a 100% accurate forecasting method simply does not exist. So, he decides that once he becomes a good analyst, there will be nothing to stop him on his way to trading success. When the wanna-be trader makes his first steps, he usually reads about a forecasting method, which promises a great success rate. In reality, things are far more complicated. Most people’s idea of a trader is someone, who just sits on his desk, making tons of money, while drinking his coffee. ![]()
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