8 Sep 2014

STOP BLAMING OTHERS




People have a tendency to put the blame on others. In this article I will try to advocate the other side.

I lost money because my broker is against me.

The only reason your broker would want you to lose a trade is, if you are using a dealing desk broker (your broker can take the other side of your trade) It is ridiculous to think that your broker is against you. Think about it - broker earns money when you trade, so if you are out of money, they won't earn on commissions (spread).

Do you have a feeling broker is aiming for your stops? The price moved just to stop you out and and then sharply reversed? 
In situations like these, first thing you need to do is to check the spread for the particular pair. A lot of new AND experienced traders forget about the spread when trading. You have to take the spread into account when you set both - your profit orders and stops.

Do you keep a trading journal? A lot of times you can avoid a loss by widening your stops only by couple of pips.


I lost money because of of this stupid trading system

The truth is - most of the new traders have dreams of a system that wins 100% of the time, and whenever they try out a new one, they give up on it after one or two losing trades.

Have you considered a strategy that fits your personality better? It's very difficult to take good trading decisions if you have to trade against your own nature.
Have you given it enough time? You can not judge system's efficiency from one or two trades.

And most importantly - Have you tested it on your demo account? You should NEVER EVER start trading new strategy on live account, if you haven't tried it on demo yet. 


I lost money because I followed an advice I found (online/in newspaper/fellow trader told me)

I have never been a fan of any copy-trading. If you have followed a tip from a market guru and lost money - you can only blame yourself for listening to this advice. I know - it's hard to sell when you've just read in a finance magazine something like ''Buy now! This thing is never coming down'', but remember - no one knows what will happen in the market tomorrow. If you trust your broker, system and your own analysis, profits WILL come.


For FREE forex education visit Trade It Simple

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