Ping Pong Forex
December 7, 2006 by Trader Rich
I felt like a ping pong ball this morning as follow through momentum on both of my trades failed. Before my trades, I was up 210 pips for December. Afterwards, up only 30 pips. Yes, it is frustrating but I will not seek revenge on the markets. I'll tell myself that this is just the price of doing business which it is.
At this stage in my learning cycle, I'm really not focusing as much internally on whether I win or loss money. Though I'd much rather be making money, my goal is PROGRESS. I may have used this analogy before but I used to be a smoker. I had tried many times to quit the terrible habit only to be derailed by a night at the bars or some other outside social activity. Those of you that smoke or did smoke can relate. There were times when I had quit for months. Then I'd go out with friends and smoke just 1. This 1 cigarette would quickly turn into 1 more until the habit was mine once again. This habit would remain for many months to over a year until I could motivate myself to quit once again. This has happened many times over. This clearly demonstrated my lack of willpower. My point is that this one moment or decision I made (to smoke that 1 cigarette) sabotaged my previous efforts. This can happen with trading very easily and has to many people. Just 1 day of impulse trading or revenge trading can wipe out months of progress. This sticks in my mind anytime I feel that I'm starting to lose self-control in my trading. Willpower is defined as the control of one's impulses and actions or quite simply, self-control. I know how it feels to have a momentary lapse of willpower and as long as this lapse is kept to the bare minimum, a comeback can be made. But allow this lack of willpower to take over and it could mean the end. This may sound dramatic but I've talked to too many people that have blown out their accounts because of 1 single lapse of self-control. Some of them have gotten up from this blow but others have not. Forex trading is a revolving door. I just hope that when I decide to go through it, it will be on my terms.
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I agree with your point.
At a certain level, the ability to control your mind is the key.
Wish you have a good ending this month
I know exactly what you mean. My own current struggle is about NOT doing the things that I KNOW are wrong. For some reason though, I just keep on doing them.
Last night I got in at a super position on the EURUSD before the big downpush in London, and I made 15 pips but then as it began to stall a little I did my usual mistake which was to get spooked and grab my profits. Then of course it pushed on down about 40 pips more. The currency did exactly what I thought it would do, but meanwhile my trade-brain is doing other random out of control actions.
One strategy I am starting to lean towards to stop myself is to go in, set my stop, then DONT LOOK AT THE CHART until an alloted time later, like 2 hours or something. Once my position was on I was like “GO OUT NUMBNUTS, GET AWAY FROM THE COMPUTER! YOU WILL DO SOMETHING STUPID! YOU CAN’T BE TRUSTED!”
But I didn’t, I hung around watching it obsessively and sure enough I shot myself in the foot again, the same way I always do.
It is also a CLASSIC mistake “taking profits early”. Luckily I no longer do the other side of the mistake which is “letting losses run”… And I do NOT move my stops.
The above said, I didn’t beat myself up too much, because I still made 15 pips and my daily goal is 20.
My other big idiot mistake at the moment is that I am a little trigger happy and if I suddenly see something lining up I’ll just pull the trigger and abandon all of my rational system based mentality.
9 times out of 10 they go wrong. SELF CONTROL!!! I NEED MORE SELF CONTROL!!!
-S
Hi buddy
I was up 375 for the month and now i’m up 100 pips. Yesterday was a killer for me. And for the first time I’m not mad I’m ok its a cost of doing business. Up 1,300 in last 2 weeks so I was bound to get my ass kicked and I did, but I followed all my rules and if you did also then we just have to take the loss and move on. Was a bad bad day all my trades (and reversals) lost money.
Oh well I’m still hitting 78% success so I’m not too phased.