Frustration happens in trading. It happens in any job but it is common at the trading turret. That can be a huge problem ,especially if you are a forex trader. Why?
First the general issues with frustration in trading. You have a trade that you are sure of and it doesn’t go your way. You hit again and take another loss no big deal,except if you let the frustration start to take control. This is often when it sets in. You don’t want to be wrong,take a hit to your ego. So what do you do? You press! So here we go. This is often the beginning of the spiral. You press and push that same bias. Trend,data or news do not matter. You are right! And then more losses.
Two common very bad things happen here. The first is over leveraging. Too much size and too much risk while you try to get that trade back. Usually ends in an account with NO SIZE. Obviously this is not the outcome you were looking for,but sadly the common outcome. The second trait I see that fires up in the spiral is jumping around your standard plan,trading what you know goes out the window. You grab at everything. Any trade. Any move. Its a function of trying to make show of success. To make a right trade. It usually ends badly and much faster than you can imagine.
Before I give a small bit of advice about getting calm,let e say why it’s my opinion that this frustration can be especially brutal in forex trading. The nice thing about forex is that there is always something going on. News, data and kits of different contracts trading that can be move into at a similar price. In addition there is almost always some juice( leveraged volatility) somewhere. The problem just that. When you are frustrated and trading poorly, there are tons of trades to be had. Fast moving,volatile trades. As far as they eye can see. This can blow you out faster than a tip fuel dragster when you are frustrated.
When you start to see these signs or feel the frustration, get up. Get off the desk. Hang out with your pet or kids or whatever if your home. If your in an office you can go for a walk. Get out. Buy a new pen or something simple. Get your mind off of it. Then go back and calmly go back over what you were doing. It will be easier to get back to the flow when you can see it clearly. Trust me I’ve been there.
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