Sometimes it seems like the market is out to get you; every trade you make goes against you like some sniper waiting to shoot you down. Rest assured that you are not alone in feeling this way. In fact, it is a common feeling among both seasoned and novice traders.
However, what I’m going to tell you may poke at your ego a bit so brace for impact! The truth of the matter is that the forex market really doesn’t care who you are or where your trades are placed. Some may say that the broker has it out for them-which is also incorrect because if you lose your money and close your account they miss out on future commissions. The market can seem cold and callous. It can also seem happy and spritely. How can the same market have such extremes? The answer is simple, psychology.
In addition to supply and demand, the major factors that move the market are fear and greed. When you give into these feelings, regardless of who you are, the market will swallow you whole, chew you up, and spit you out. Sometimes it seems like you can’t get a straight answer out of the market-like a scene straight out of the Notebook. It feels like you’re pulling teeth just to make a pip. This is all part of psychology.
We all fall victim to these traps every now and then, but the best way that I have found to overcome getting discouraged and/or giving up is to write down my trading plan again. I write down the specific patterns I need to look for. Then, I write down what I am feeling when I place a trade. Finally, I try to follow the old adage, “plan your trade and trade your plan.”
Most errors come in the form of adjusting your trades outside of your trading plan when faced with a candle or trade that goes against you, but if you develop a solid system you won’t have to worry about the ups, the downs, the sideways, or the spikes. You can trust your lifejacket of a trading plan, and as long as you follow it all will be ok.
Keep in mind that trading is not always just a+b=c, and when a=%^& instead of c… then we have a tendency to freak out and ask why. Sometimes accidents happen, and sometimes the market does what it wants. As long as we keep that in mind we can smile when it shoots up, grin when it climbs down, and learn to go with the flow. Remember, those who give up on something will never be successful at it.
Keep calm and put your stoploss on.