Winning in Forex is both pleasant and dangerous as after experiencing a series of winning trades or after a single large win some traders become euphoric and kill their trading account.
Here is a scenario of an euphoric behavior.
Here is a scenario of an euphoric behavior.
- You place a trade by following your strategy and close the position with a win that was to some extent lower than your ‘take profit’ point. Not bad!
- Then you plan and place another trade and close it at your Take Profit point. Great!
- Now feeling more confident you double the size of your trade and win again. Wow! Perfect!
- You regret that you didn't place a larger trade before and place a trade. You win again. Incredible!
- You feel that you have learned the system and another win makes you feel invincible.
- The trade goes against you but you are too confident to stop and you lose.
- You’re still confident that you will win the next trade as you know how to beat the market. Another loss!
- You want revenge. But stop or your account will get wiped out!
- Traders usually took lessons from losing trades by analyzing. But there are a lot of things to learn also from winning trades so analyze them too.
- Don’t rush into a new trade immediately after you win or lose. Take a breath for a while.
- Once you have placed a trade, just hold it and don’t enlarge.
- Occasionally withdraw the winning money from your Forex account to your bank account to weaken the temptation of making trades and minimize the sum that you can lose.