Being able to deal with losing trades separates successful trader from ex-traders

Being able to handle you’re loss in a vital skill that can be learned, however this learning requires the trader to be brutally honest with one ’s self.  In my opinion we live in a blame society, where it is everybody else’s fault apart from the accuser. But may be it could be you not being able to maintain the proper mental discipline and psychological strength to follow the system and methodology that you have tied you’re self to by all cost otherwise it can lead to you being slain by the Song of the Siren 

Sirens and death

According to Ovid (Metamorphoses V, 551), the Sirens were the companions of young Persephone and were given wings by Demeter to search for Persephone when she was abducted. Their song is continually calling on Persephone. The term "siren song" refers to an appeal that is hard to resist but that, if heeded, will lead to a bad result.

Odysseus and the Sirens.

Odysseus was a legendary Greek king of Ithaca and the hero of Homer's epic poem the  Odyssey

He is most famous for the Ten eventful years he took to return home after the ten-year Trojan War and his famous Trojan Horse trick. 

Odysseus was curious as to what the Sirens sounded like, so, on Circe's advice, he had all his sailors plug their ears with Beeswax and tie him to the mast. He ordered his men to leave him tied tightly to the mast, no matter how much he would beg. When he heard their beautiful song, he ordered the sailors to untie him but they refused. When they had passed out of earshot, Odysseus demonstrated with his frowns to be released.#

The principle behind trading is to have more wining trades than losing one’s where you’re losing trades are kept very small and you’re winners larger than you’re loser there fore resulting on accumulative profits over time. FACT!!! The successful trader realises that in this game we are trying to stack probability in our favour over and above 65% risking an advisable 2% to 3% of one’s account stops should reflect this. And only moved to protect gains. If you’re about to get stopped out then so be it. Take the hit and move on it's just part of the game.

FAQ No 10: Can i get rich over night

FLAT ANSWER NO!
But in time it can be very rewarding.

FAQ No 9: How much can I Lose

“Have a maximum loss limit per trade.”
Discipline

Every consistent trader I know has a maximum risk allowance per trade. This is a fundamental tool in the process of controlling loss and if you are trading actively I would highly suggest never risking more than 1-2% of your starting account on any given market opportunity. This way, if you lose, you lose small. I have heard of people risking sometimes 10-15% of their account on a day trade! Just think, after less than ten losers, the account is blown and goodbye trading career. Remember that the math of the market is stacked against you from the very start: If you lose 10% of your account on 1 trade, you then need to make 11.1% on the remaining balance to get back to where you started. If you lose 50% of your account then you need a 100% return on what’s left to get you square. Sobering numbers I know…Keep your losses small and you are giving yourself a genuine fighting chance of a far longer career in the world of trading.

FAQ No8: How do i manage my fear

 Very good question: We are human beings and we can not live without emotion, unfortunately having emotions in the Market arena can be disastrous  to you’re trading account. i.e. Revenge trading, holding onto losers, tell the market what to do instead of letting  the market tell you what it wants to do next effectively not waiting for confirmation of what you think may happen. Price is King and the market is always right.


Therefore, I have to self analyse my self which is one of the most diffuciult things to do. What goes on in my head while I’m trading and being honest about it, confessing it to my self . Then I review this self talk later so I can become familiar with the negative and positive ones. so i cance; out the negative thoughts with the postive ones. You will find that you spend 80% of you're time self analysing you're self and planning a trade,  this must be documented and reviewed daily.

Negative Thoughts                                                                Positive Thoughts

I’m not good enough                                                 I am the best
You must be kidding you’re self you

can’t do this                                                                I can do all things through the holy trinity who tells me to Plan a trade and trade the plan. 

I fcuked this one up real good                                 I smacked it that trade Up and down sticking to my plan

Shit                                                                             Brilliantly executed

Fcuk am I wrong on this one                                    Excellent head shot  

Where am I in the trade                                            I am in total and complete control

I’ve forgotten the price                                         I know all the prices for each pair that I am trading

Why haven’t you got Know patience                       I Am cool calm and collected

Stupid dumb Idiot                              You have a genius understanding of the markets You are an inspiring young black man Who undoubtedly have a natural flow in my  trading style. 

I am not sure if I should make this trade                I have worked hard and have proven myself. I can do this and be successful

What if this trade turn’s out to be a loser              winning and losing is a natural and necessary part of this game so I keep my loss small and  my winning big.

FAQ No7: Do I need a Mission Statement

Yes!! very important for those dark days when the Sun is not shinning and you tell you're self you are not good enough. it nice to have a reminder to keep you on track.


here's mine for you to start you off

Mission Statement

I am patient, determined, focused and confident I have a disciplined well thought out trading plan and I follow it diligently. I treat every trade like I am performing brain surgery, with strict money management techniques which is my life’s blood and I recognizes this. I am never satisfied with what I do as i know it can be done better. My main aim is  to plan a trade a trade a plan and enjoy being  better than myself in my online trading career.

Goals

To become financially free,

Continious skill learning 

Develop Patience’s

FAQ NO 6: Is Trading Gambling

If I had a Pound for every time somebody has told me trading is gambling then I could give up all my work right now! Trading and gambling are two completely different things Professional traders look only for high probability, low risk opportunities in the market: nothing more, nothing less.
Each and every trade should be thoroughly planned in advance, with the risk defined and the profit targets objectively identified. Trading is a crossword, chess, psychology, science all rolled into one. A trader should never just jump into the market on a reflex action or emotion based impluse. Emotions are a killer for any novice. If you want to make your trading more like gambling then I suggest trying to trade the major news releases or not using stop losses to protect your capital…but do so at your own peril. Gamblers are hopeful and wish it will work out for them. Traders should be objective useing calcualted risk with a rule-based apporach.

FAQ NO5: What is the best time to Trade

The absolute busiest time in the forex markets are during the London to US overlap between 13:00 GMT to 16:00 GMT. These are the hours that are the most liquid or when the most traders are in the markets making trades. If your intention is to do daytrading, these are key hours!

The London Session
The London session starts around 8:00 GMT and winds down around 1600 GMT. The currencies that are the most active during these hours are EUR, GBP, and USD.

The US Session
The US session starts around 1300 GMT and winds down around 22:00 GMT. The currencies that are the most active during these hours are AUD, EUR, GBP, JPY, and USD.

The best time to trade the forex markets is between 8:00 GMT and 16:00 GMT. These are basically the hours of the London market with the last 5 hours being in overlap with the US market. This is the time when the most traders and biggest banks are in the markets making their trades. It is widely considered the most profitable time to trade