Earlier this morning I was talking to a friend (who is outside of the trading world), she asked me what was the most difficult thing about Forex? I say, well, there are many things: you need to use a well developed system, risk and trade management, money management, you need to be discipline and patient, mentally fit, etc… Then she said: “No, what is THE most difficult think about trading? Name one”.
She got me to think about it, and it wasn’t until 3 or 4 hours later that I got the answer to that question:
The fact that you are never in control over the market
You can do everything right, follow all your rules, enter when you are supposed to enter, set your SL and TP orders at the right place, and still the market could go against you.
When doing everything right in other areas of life, 95% of the times you’d get exactly what you expected, but that’s not true in the trading world, be it Forex, options, stocks, etc.
But we have to learn to live with that (because there is nothing we can do about it). One of the things that helps me deal with this is that I don’t relate the outcome of one particular trade (positive or negative) with the way I trade. That is, I do things right when I follow the system (even if the the market goes against me and hits my SL), and I do things wrong when I don’t follow the system (even if the result of the trade is positive).
I know that if in the long term I follow my system, my chances of success are greater.
Tags: forex education
I’ve been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .