Im going to voice out about the reward punishment tendency which is a self-imposed or self-responded tendency where many traders are suffering from this. A lot of traders especially the beginners have a goal to make thirty(30) to fifty(50) USD on a daily basis. They impose on themselves these kind of incentives. Initially, they would probably make the thirty(30), fifty(50) USD or even more because of the kind of expectation. However, this type of trader is psychologically conditioning their mind focus only on profits. This is where the danger lies as then the trader starts neglecting all the other important elements such as risk parameter where they will breach the parameters mainly because they are target driven.
What most fail to realize, it is not about trading industry or even the issue with forex trading. The main topic is the problem with human misjudgment. When the trader has this kind of impulse, they cannot sustain in the industry for a very long period of time. Not only that, they would be unable to make consistent profit.
Let me proof to you with this trade. I placed in an entry in GBPJPY H4 chart. It is a live account which is actually growing to almost 619USD. If at all I had a daily expectation, most probably I would have exited. As you can see I have been holding this for two(2) weeks. The price is just moving slowly higher higher. Im not in a losing state neither am I moving fast as expected. Those who understand this effort can survive and sustain in the industry. However, for most beginners don’t understand this and come with huge expectation that they can immediately make money every day. With this mindset, it would be advisable to take up a nice to five job but not trading. Trading is similar to placing in an investment that you can withdraw quarterly or bi-annually without much stress. If whatever I am saying resonates with you, then there is a chance of being successful in trading.
There might be some of you who will disagree with my thoughts and still desire to stick to daily target with a trade of one(1) lot with capital of a hundred(100) USD and target of 10 pips achieved in a day. It is achievable but the chances of survival is slim to none. You may question me asking what am I talking about? There are many people who are displaying profits. You fail to realize that none show you the balance. These so called “gurus” only show their profitable trades but not their floating loss. I am showing evidence that my deposit in my live account is nine thousand dollars.
I have withdrawn two thousand dollars and starting back growing my trade. You have to understand that growth doesn’t happen overnight. It may take some time as Rome was not built in one day. Unfortunately, many traders due to reward self-response tendency have a habit of trading ten(10) to twenty(20) trades per day even though there is not any opportunity presenting itself.
However, these traders will persist and trade because they have to achieve a target set by themselves. This is a clear road to disaster. I sincerely hope this message gives you some insights to sustain in trading Forex industry. Think Differently. Act Differently.
This is called precession if you have the proper price action knowledge which I teach in my advanced course, you would really know what is taking place in the market and you can hold your trade very well. This is the advantage of price action technique. I want you guys to adopt this method to have more clarity in the way to be profitable trader.
I will be covering all these and more in my upcoming 1st Step Program and Stop Loss Hunting Course. You see its not always all about the latest strategy out there, but the mindset and psychology behind the trade and inside the trader’s mind. With my experience for over a decade in the Forex industry, my students have leverage on my mistakes and shorten their learning curve by starting on the right path with my courses. With the Right Mindset, Right Knowledge, Right Skills, Right Mentor, all is possible.