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This is a huge mistake new traders make. They think if the wait it out
the trade it will turn in their favor most of the time they end up
losing more money. Chasing trades and adding to a losing trade is
trading out of fear and emotion which should be avoided.
One thing you might want to consider if you are having a bad day is step
back and read over your trading plan and adjust it accordingly. On
profitable trading days you want to lock in profits and write down how
and why you were successful in your trading plan.
Having a positive trading mental attitude will create more profitable
trades. Research your trades before you make them is all part of the
process. You need to have a clear vision of what your are trading and
keep as much emotion out of the situation as possible. Generally the
markets are against you from the start. The more research you can do
will help even out the risk of loss and turn it into profits.
The fact that you are trading real money always can interfere with the
trades and that is problem that some traders must deal with. In my
experience in trading Forex and helping new traders, that the greatest
cause of losses is not having self-discipline. Traders need
self-discipline to follow your trade plan; to be patient to take
losses. and profits and to practice good money management.
No matter what markets you decide to trade you need to learn to trade
consistently making more better trades than bad, and the results will
be more money in your trading account. The time involved to do this is
really up to you but all successful traders never stop learning and
adjust their trading to meet the current situations.
If you are a Forex trader you need to be careful using a high leverage
like 100 or 200 to 1. This can make you money but it can also wipe out
your account. The new forex trader needs to start out trading small
lots with a 50 to 1 leverage until they get use to this style of
trading. It is foolish to use high leverage you are just trading out
of greed and you will lose all your trading capitol in the long run.
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