Would you rather be right or Making Money in forex? There is a high probability that the Trade will achieve the take profit If you analyze the market the right way, but if the opposite happens, will you be angry? Will you open a reversal trade quickly without knowing the reason for losing the first trade?
Of course, such situations have happened to you, or they will occur over time if you are a beginner, but how do we solve this problem that faces a person when he feels that he failed and thinks that he has analyzed the market in the wrong way? We will get to know the most important reasons and solutions to skip this stage to start making money.
Things can control your mind and prevent you from making money
Arrogance vs making money
Arrogance vs making money
Arrogance is one of the most important reasons that may hinder you from making money in Forex because as a trader you win and lose trades. Many feelings may control you during your journey in Forex, the most important of which is arrogance when you win a trade. For example, you may think that you control the market and that your trading method is the best way to make money in forex.
This way of dealing with a big market like Forex may make you lose a lot instead of making money and will not help you make money at all, Because if you win a trade, if you are not aware that the market is much bigger than you, and you can’t control it or you don’t aware of you may lose upcoming trades, you will be shocked by what will happen and the result will be huge losses that you will not be able to bear.
How do I notice times when ego takes hold of me?
First: Do not pay attention to how people look at you, as they will not give you the money you seek and work for. Be different and go to your goal without looking at them because most of them will not help you with anything
Second: When you lose a trade, do not rush and open another trade, This time is very dangerous to rush into opening another trade, but think and learn from your mistakes and discover why you lost the first trade and it is possible that you were right, it may be a normal loss that occurs to many traders even when they analyzed the market in the right way, but it is more likely that you did a mistake while you trade on the strategy.
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Third: Accept the loss because if you don’t do this and sit sadly, you may miss a suitable opportunity and match the strategy you are working with, and believe me. You will grieve more at this time and Do not let ego dominate you and control your decisions and actions after a winning trade, as reason and logic are the basis of decision-making, Not emotions, and ego
Please note Many traders post analyses on social media and they do not post losing trades, when the trade reaches the take profit, they congratulate themselves and their clients, I do not recommend any trader to subscribe to this type of channels.
Making money vs Being Wrong
making money vs Being Wrong
Am I wrong? This depends on the way you analyze the market. It is possible that you will win a trade that you analyzed completely wrongly, and it is also possible that you will lose a trade that you analyzed very correctly. This is the nature of the market, so knowing whether you made a mistake in the analysis or not, as the result of the trade is not the answer to this question.
The answer to this question is up to you alone, because quite simply you are the one who analyzed the market and you are the one who knows what you should and should not do, To make the point clearer, let me delve deeper into this topic… Before deciding to open a new trade, focus well on your decisions and whether there is anything else you want to add, such as a trend line, checking the news…etc. After considering these criteria, and you have already decided to open your trade, have you decided to change the stop loss or take profit after opening it To make money faster?
If the answer is yes, then most likely you were affected by the market conditions “that did not changed”, but you are the one who changed psychologically because after opening the trade you decided to make illogical decisions that were impossible to take before opening the trade. If you look at these decisions in the future, you will say to yourself, how did I do that? And you will be surprised by your illogical actions.
What is the solution?
If you are looking for a solution to be right all the time to make money, I must shock you with this answer. You will never find this, Because quite simply we are human beings who make mistakes sometimes and are right sometimes, this is our nature, so we must accept our mistakes to be more right in order to make money in forex.
This is the best solution, especially in a large field such as Forex, where the losers are much more than the winners. It is very natural to find many problems faced by 90% of losers in Forex, and this is a very large percentage because it is shocking to know that you are from this category and you facing a problem in analysis, Strategy, Emotions while trading and want to solve it. The solution to this problem will not be through perfectionism, but rather accepting that you are from this category that constantly loses and knowing how to get out of it intelligently.
Don’t Fight back to make money
Never try to be stubborn with the market in case of loss or even profit because in this case, you will lose more and more. For example, you are trading the EUR/USD pair and you have lost 5% of your account and you want to enter more trades to compensate for this loss. This is not a bad decision, really, but the problem here is that you want to take revenge on the EUR/USD pair because it made you lose your money! Do you think this pair wants to defeat you? Or even have feelings?
What happens when you decide to think this way? First of all, you forgot your main goal which is making money and you did not think about risk management or that you will even lose more. You took the issue very personally. If you are surprised by what I said, the same thing applies to market makers. Feelings of revenge or hatred don’t need to be towards a specific pair or in the Forex market. These feelings can be towards the market makers who made you lose.
What is the reason for the loss?
what is the reason for the loss
The reason is not that you are wrong or that you are right but in the way of dealing when you are in both cases. Every person has an opinion and has his style of analysis, so the basis for solving the problem is to acknowledge it, So don’t be stubborn and say you were right even though you know very well that you didn’t stick to the strategy or with the Risk management … etc. So admit your mistake and do not overlook it to be able to solve the problem the next time and avoid a bigger problem in the future that will help you a lot to make money.
<<< Reasons Why Traders Fail when Trading Forex >>>
How to be always right?
No person on earth is always right in Forex, we are human beings who make mistakes and right, so accept the time when you are wrong just as you accept what is right, and try to treat it so that it does not happen again. there are too many famous Traders who post their analysis on social media and post Losing Trades sometimes.
But the important thing is that their winning trades are more than the losers, and this is what is important, So how would this happen if you didn’t make mistakes? The mistake makes you gain experience and experience will reduce your mistakes over time because you will be more and more aware of the nature of the market, it does not matter if you are right or not, The important thing is Learning and improving your self and your account capital will increase over time.
Which is better, being right or making money?
Example
A trader who analyzed and posted his analysis on Facebook and was reassuring people that this trade would achieve the goal and he was sure that he could not make a mistake because he had 5 years of experience in Forex and it’s a great opportunity … etc
Example 2
Trader saw that there was a good chance for a trade and published this opportunity with the analysis on Facebook, and the picture was attached to the analysis with stop-loss and take-profit, and he did not say anything else.
What is the difference?
It may be the same analysis, but the difference here is the psychology of the analyst himself. The first was reassuring people, why? You have done the necessary analysis that makes the person think about the trade to make a correct decision and understand your analysis well why do you reassure the Traders too much and delete the think of logic that this trade may fail.
The second one, presented his analysis based on the strategy in which he works, ignoring his feelings towards the market and people’s perception of him, so what is important is that he makes a profit not that people thank him, as he does not care about how people see him to make money.
Deal with this market as a robot. Make your decisions based on the chart and the data in front of you, not on your feelings and opinions of people. The main goal is to achieve profits, not to satisfy those around you.
Making money or Blaming others
it’s your fault
It is very easy to blame others than to find a solution to the problem you are in. If you focus on blaming others or even the circumstances you are in, you will completely deviate from the reason that made you join Forex, which is to make money.
I am not telling you not to blame anyone because there is indeed a problem in the event of a loss in a trade. It is wise to blame your trading method or yourself because it is very likely that you made a mistake in the analysis or in the way you see the pair or you may have ignored the presence of news during the day. This is a very effective way to improve yourself and avoid mistakes that may occur in the future, There is a difference between blaming yourself effectively and Self-flagellation.
Your goal is to make money
The way you behave and think about Forex is very important. Is the goal to make money from Forex or will you forget this goal over time? You must always keep your goal in mind because, during your Forex journey, you will face many problems that must be solved with patience and wisdom.
Summary
You are human beings who make mistakes and right, do not get angry at the mistakes and accept the loss and try to learn from it to avoid big losses, Never mind criticizing those around you so be a believer in what you do The pursuit of the goal is to make money, not to satisfied people.
Do not let anger dominate you. Think carefully before entering into a new trade and monitor your psychological state. Are you ready to open a new trade or not? Will this trade be opened based on reason and logic, or do you want to take revenge on this market? Loss occurs constantly and it will never stop. The solution is to reduce these losses to be able to achieve profits
