Let Me Ask You Some Investment Management Questions my Dear Reader and Forex market trader:
Dani Oh, Here and I welcome you happily to my Financial Investment management article today and I believe it will worth your time to read through.
So, Let’s get straight into it, Shall we?
1. What is the biggest loss you have taken while trading the markets?
If you have never traded in the markets, what is the biggest loss you
have taken in an investment or a business opportunity?
2. What was your emotional experience during that event?
3. What went through your head and heart during that event?
4. Were you in emotional control or was your destructive ego in control?
5. Was it worth it?
6. What did you learn from that experience? (This is important because if you did not learn anything, you will probably repeat the same actions and endure the same consequences again.)
7. What new disciplines have you now implemented when you invest or trade due to what you have learned from that event?
For some reason, many people think something magical is going to take place in the Forex market, and “Poof,” they will become Rich.
They are not trading with any intention to understand the market and why it moves the way it does. As a matter of fact, they believe there is nothing to be understood (and they are very wrong).
They may say that the market is simply mysterious and it just works the way it does without Rhyme or Reason. In as much as I hate to be the bearer of good news, I must inform you that this is far from the truth.
Hopefully, you have been paying attention as you read this post and
realize that the trading chaos that exists in the markets can be understood.
My discoveries in the Forex market over the years and how I have simplified them have altered the lives of countless people around the world.
I really wanted to name this post “When I trade, I may lose, but don’t count on it.”
The Forex market is not a mysterious or magical place.
It can be figured out and people can make money over and over again as they come to this realization. You can trade strategically because the market and its movements can be understood − you just have to know what to look for.
“Forex Truth: Traders can make more money than they lose, but
they can also lose more money than they can make.”
If you have already tried your hand at Forex trading, let me ask you this question: Did you try to outsmart the market by not protecting yourself and trading without stop-loss orders?
If so, how many pips did the market move against you?
One hundred pips?
Two hundred pips?
Are you Embarrassed to say?
Did the market move back to your entry point or were you liquidated? If it came back in your financial favour after working against you, did you continue to stay in to capture hundreds of pips worth of profit by keeping your risk/reward ratio intact?
Or, were you so traumatized and emotionally beat up that when it came back, you were just grateful and happy to get out by breaking even, or with only a handful of pips worth of profit, in fear that the market would take it all away again? (Hire a Good Forex Mentor For 2weeks Period Here)
Always Protect Yourself:
If you take nothing away from this post, please understand that there is no excuse for not protecting yourself while trading the currency market.
You always protect yourself when you drive by wearing a seat belt, driving undistracted, etc.
You always protect yourself when you are on vacation.
You always protect yourself when you are swimming in oceans, rivers, and lakes.
You always protect yourself when you enter into a relationship.
You always protect yourself when you lend money to your friends and family.
When you invest in the Forex market or in any trading avenue, you should always protect yourself – period!
Successful traders have learned to always protect themselves when they trade.
Protecting yourself as you trade can be done by placing a protective stop-loss order in the market at the time you execute the trade.
Protecting yourself as you trade is quantifying how much you are willing to lose before you enter the trade to ensure that you do not lose more than that amount.
To sum it up, if the trade does not work out according to your plan, you should be able to emotionally and financially survive without that loss substantially affecting anything in your life.
Protecting yourself at all times, and in every trade, needs to become a subconscious habit.
It should become every bit as mindless as avoiding walls when you walk.
Never trade without looking at the downside first or the opposite side of the risk you are taking.
You should never trade without asking yourself, “If this trade does not work out, can I afford to lose X amount of money?”
Protect yourself at all times and if you take a financial loss, don’t take it personally.
Emotions control most traders and when you let your destructive emotions get involved, it may become hard for you to make any money as a result of your trading efforts.
As you trade, you must never forget that security in the market is a myth.
It does not exist.
Trading without protective stop-loss orders is outright exposure to financial self-destruction.
Trading without a protective stop-loss order is a bad habit to begin.
It is when you don’t protect yourself that you will open a door to one of the scariest rooms you will ever walk through in your entire life.
As you learn to trade and get a little experience coupled with successes under your belt, you’ll step into an arena of false security.
That is why people drown in the market ocean.
They swim with insufficient respect and knowledge about what the market ocean can do (a false sense of security) based on a feeling. They have the feeling that they are greater than the force of the market ocean and it is at this point that they drown.
The sad part is that the market ocean meant to do no harm.
It was just doing what it does and that is what is good for Business!
It was simply carrying on as it always has.
Like the ocean, the market exists with no feelings.
Without the proper knowledge and respect for the market, you too can drown from a financial standpoint.
And if you do drown, the market will feel nothing!
It can’t feel and it can’t care.
As I have pointed out, it is a part of nature and it does not have any emotions.
“Fear always springs from ignorance.” -Ralph Waldo Emerson
Trading without a protective stop-loss order is being ignorant to the realities of the damage the market can do to you psychologically, emotionally, and financially.
If you enter the market without protecting yourself first, you are the perfect candidate for a catastrophic, life-altering event in your trading career.
I want you to know that this holds true for both novice and experienced traders alike.
There are unforeseen events like the September 11th terrorist attacks which unexpectedly moved the currency market 500 to 1,000 pips in an unplanned direction.
Although these instances do not occur every day, fundamental announcements occur often.
Like increases or decreases of interest rates after the U.S. Federal Reserve or a bank holds a secret meeting about the economy.
These announcement results can change market direction rather quickly.
This is why your protective stop-loss order is so very important in helping you achieve your vision of Forex success, by protecting your trades and emotions.
Setbacks and failures are a part of life.
What we don’t want is a setback so devastating that it changes our lives forever.
This illuminates the true value of the protective stop loss.
When it is time to execute a trade, you can never really quantify how much you could make in a trade, however, you can always quantify the largest amount you are willing to risk or lose in a trade should the trade not go your way.
Yes, you can go ahead and (Start Making 45Pips – 75Pips Per Day Money On AutoPilot Today)
P:S: If you have any questions regarding this post, Kindly, go ahead and comment in the comment section below or share this post with your Forex trader Friends using the share button on this post page, thank you!
Talk To You Soon And See You Inside,
Best 2Weeks Forex Success Mentor
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Author: CashForex Portfolio Trading Book