Sunday, December 16, 2018

Forex Trading - Losing is Winning!

Losing trades are a natural part of any trading plan.  I need to remind myself of this when I am in a trade or immediately after exiting a trade.

Why did the transaction not work?

Was there something I missed in the analysis or preparation?

The truth is a losing trade (if trading properly according to my plan) is simply just a losing trade.  I've had them before and will have them again.

In the scenarios above I'm sure I would have very different feelings after the 4th trade.

The pattern of winning and losing trades is unknown

The sequence of trade outcomes is random.  An individual loss is simply just one of the L’s in the series.

Having a well structured plan, back-tested statistics and a detailed trade journal helps alleviate some of these feelings.  However, it is still really easy to lose perspective in the heat of the moment!

No comments:

Post a Comment