What is the first idea that pops up in your mind when you lose a trade? “There must be something wrong with my system”, or “I knew it, “I shouldn’t have taken this trade” (even when your system signaled it).
But sometimes I think that we need to dig a little deeper in order to see the nature of our mistake, and then work on it accordingly.
What Mistakes really are
Most of us relate a trading mistake to the outcome (in terms of money) of any given trade. The truth is, mistakes have nothing to do with it, we make a mistake when we don’t follow our system, when the rules you trade by are violated.
To have a better understanding of this, take in consideration the following two scenarios:
forex mistakes, trading psychology