FOREX DIARY

How many times has this question popped into your head? Is it true that every time you turn on your computer and turn on the electronic forex chart in front of you, the sound of the question rings in your head?

To trade or not to trade, to enter or not to enter?

Let me share with you a fact that it is (much) better to stay out of the market, rather than being the poor guy swimming in the river of ups and downs. It is always better to not enter a trade that will later turn out well, than to enter a trade that will later make you wish you had not clicked the mouse.

Knowing when not to trade is extremely important, in fact, it is more important than knowing when to trade. As well as the philosophies of the investment legends that you all know well, what they shared. Defense, keeping money, preserving capital, is paramount in investing.

"Investing rule number 1: Never lose money. Rule number 2: Never forget rule 1". Warren Buffett

KEEP THE BULLETS TO HUNT EASIER PREY

One of the secrets to success in forex trading (stocks, real estate, etc.) is: preserve capital in your fund, and save them for opportunities with high probability of winning, even obvious winning (remember how many times you have seen such opportunities, I am sure there are many, just the waiting time is relatively long). Instead of haphazardly and eagerly throwing money at 5-5-5 opportunities that appear everywhere in the market, day after day.

As an investor, having no money to invest means we are useless. Like a soldier going to war, if his gun has no bullets, what will he fight with? Or imagine you are like a general and the coins in the trading fund are the soldiers under your command, how will you compete for the throne if your army is all dead? Shouldn't we "bet only if we are sure of winning, and not bet if we are not sure of winning?"

(Let me share with you another aspect of this issue with the story of Soros, when he bet everything he had, to write a legendary story related to the British pound. Interesting and wonderful, right? Yes, it brought a huge profit and reputation, relationships, ... to Soros. But have you ever wondered, if the market did not go exactly as Soros thought? At this time, he, like many others, disappeared from the map. And what would his life be like?

Soros, in terms of basic investment principles, was such an action wrong? I am not qualified to discuss. But the recklessness is there, the greed is there, he bet everything he had even if he was wrong, he would be homeless on the street. Such moments make the difference.

It is also your decision, there will be moments like that, and you choose your own life after that. If you want to be different, you will have to accept the terrible and cruel risk, and I wish you luck. I myself tend to favor the trend of regularity and peace, because life (impermanent) has many other important things besides money (transient) and fame (illusory).

REMEMBER THIS: DON'T LET YOUR GREED EXCEED YOUR NEEDS.

Of course, a little greed is necessary and good, it will push us to be better every day. But too much greed is very harmful (in all matters), it makes you want to trade more to make money faster, want to trade with larger volumes to make more money.

The best traders are those who have a strong grip on their hands, and on their accounts. Keep them warm, safe, and ready to use them if “something very solid, obvious pops up right in front of them. Having signed the waiting rule, they immediately jump into the market when their conditions are right, and will not rush to close the order early if the market goes against them by a few dozen pips.

The real power of knowing when to trade and when not to trade is that it allows you to preserve your capital, and not waste it on low probability setups. And when a solid, obvious setup appears, you have “more money” to trade, and more chances to win. Simple, but powerful

Remember my article on Poker? Always trade when you have a clear advantage (like your hand is AA or AK), and try to maximize the profit for that opportunity in the Forex market. If you trade when you are right you know you shouldn't, not only are you drying yourself out with a low probability, you're wasting the few bullets you have. It's sad to see the probability of winning so high that your forex trading account is naturally burned.....

YOU HAVE TO CONTROL IT, IF YOU WANT TO BE A SUCCESSFUL FOREX TRADER.

I understand how you feel, as a forex trader, we love trading. And because we trade, we make money, right?

But when you sit there with no good opportunities, in front of the dancing electronic charts, you will start to have a lot of ideas, sadly, most of them are bad. You start to think that the market "owes" you a trade, you start to think of some certainty when in reality there is no certainty. And what happens next? You click your tongue, you place an order, and then you hope.

Choose a quiet corner, sit down, try to focus on reviewing the order statistics in your account and remember the past unbalanced, impatient orders. How much would your account be if it weren't for those orders? The number will surely shock you.

ONE OF THE MOST DRINK EMOTIONS THAT YOU NEED TO CONTROL AND MAINTAIN IS PATIENCE.

You need to immediately eliminate the feeling of always having to swim in the market, immediately eliminate the thought of having to trade a lot to make a lot of money.

The reality is that you will never lose a penny of capital if you don't trade. You have to be calm, carefully follow the forex trading plan method to decide when to take risks and when not to.

High patience is not natural, you need to practice very strictly to get it, and even harder, to maintain it. Remember Livermore, the rich man went bankrupt many times in his life, and finally ended his life by shooting himself in the head in a hotel

The job of a trader is not to place orders. Placing a forex trading order is too easy and too simple, you can do it every day with a hundred orders. The difficulty is to be patient like a hungry predator waiting for prey, like a soldier lying in wait for many hours, waiting for a really good opportunity with a high probability of winning to appear. And when it appears, immediately squeeze it, without hesitation, without fear

Successful people do not react emotionally to events. Never say "I should have done this, I would have done that". They will make you extremely upset. When we look back at what happened, everything seems so easy and obvious. But when sitting in front of a real-time chart, no one knows where the market waves will drift.

Therefore, you need to learn how to control your trading skills with PATIENCE, discipline to follow your own trading plan method, and only enter orders when there are very clear reasons that actually make you enter the order.

You need discipline, you need patience and very importantly, you need flexibility.

The market is always changing and there are always very different conditions in different time periods. We react to the market, we cannot control the market to react according to our will.

Do not stubbornly hold on to your point of view and still expect the market to go in the direction you think. This is very dangerous and will cost you a lot of money and opportunities. Always have a flexible mindset to respond to change.

Deciding when to trade and when not to trade is not only a matter of understanding the forex market, but also of understanding what it can do for you.

One of the biggest and most unique benefits of the forex market is that it is open twenty-four hours a day, six days a week. The ability to trade whenever you want, using very simple tools is a huge advantage for us to make money. Because it gives you a lot of flexibility, comfort. However, it can also work against you if you feel like you need to catch every opportunity in the market, if you feel like it is a waste to sit and watch the board all day determined not to let a single fish escape.

No one, not even the best trader in the world, can take advantage of every opportunity the market has to offer. He even missed most of them. But he knew, understood and was quite satisfied with the realization that: just a small piece of the cake was enough to fill him up for a long time.

He did not allow his greed to exceed his own needs. He did not lead him to regret, blame himself when he saw all the good opportunities he had missed. What he wanted to see was a slow but steady and sure increase in the numbers in his account.

The time he did not spend looking at the electronic board, he spent doing other more important things.