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Psychology can be a major challenge for traders, and just one tip can sometimes make a big difference in your success. That's why we include tons of exclusive trading tips in your personalized dashboard to help you strengthen your psychology and improve your trading skills.
Remember this: At any single point of the time the market can start to move against you 1000 pips up or 1000 pips down. This is why you MUST use stop loss or at least be prepared to take manual exits at specific price levels or inside an invalidation area or zone.
When we have high impact news coming that can really affect the Forex market, the best thing to do is to STAY AWAY, wait, Let the market unfold, read the reaction, read the structure and then act accordingly based on your system. Do not jump in or let the FOMO control your actions. Market will always give you opportunities but if you don’t have any money left to trade these opportunities, this is a problem.
Market will misbehave from time to time and it will make sudden big moves most likely against your bias, be ready for such moves and take all the precautions by applying strict risk and money management rules.
In trading you should be selective. Knowing when NOT to trade is more important than knowing when to trade! Your job is to select the best setup possible based on your rules and not be addicted to click trades! You must be addicted to following your system, rules and plan every single time.
Over-Trading and Over-Risking are the top 2 common mistakes BEGINNERS in Forex trading do. And that’s why it's very important to have a system and follow it on every single trade you take. Every single trade!
Stop loss should be only moved in the direction of the trade! Do not remove your stop loss when you see market moving against you. If you get in the buy and market starts to move up, you can only move your stop loss upwards and vice versa in the selling scenario.
You will face bad days, weeks or even a bad month. This is pretty normal in trading, you can and you will pass this as long as you have the faith, plan, rules, and the desire to succeed. Trading is the toughest business in the world but the good part is you can do it if you do it the right way. Learn first and then risk your money!
Here are We Trade Waves 4 golden rules:
1. Do not jump in
2. Do not over risk & over trade
3. Do not trade without stop loss
4. Never ever add to losing position
If you follow these 4 golden rules, I guarantee you, you will never ever break your trading account.
Small risk = Small loss = Potential big win
Big risk = Big loss = Potential big win (Because most traders cut their wins shortly) so it's up to you to understand this equation and make a decision if you wanna risk big or small.
Fear & greed are your 2 big enemies in trading, you have to control your emotions in order to trade properly and as per warren buffet, if you cannot control your emotions you cannot control your money. When will you face fear? Over risking or being in big drawdown