What is your biggest forex trading weakness? - page 2
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Oh and I forgot one of my (past) weaknesses: Revenge trading.
That is a real killer.
Here's my input.
a)I lose control over trades.
I no longer do. I follow a plan of what time to trade, where to enter, and if I lose that trade, where to reenter. I never trade more than 2 times in a day. I define when I move my stop to breakeven, and I define where I take profit for each of my lots. I define my first lot to take profit at 100 pips, second at 200 pips, and last one to let run. The more I define things, the easier I find to follow the rules. If I let too many factors hanging in the air, as people say 'use your own discretion', to me those are words of disaster. Emotions and stupidity comes into play, and that's when I'll lose.
b)I struggle with emotions over losses and lost "potential profits".
I don't have much of a problem over stop outs anymore. Doesn't affect me as much as it did in the beginning. But after a string of losses, although expected in my trading plan, it affected me in the sense that I am scared to trade the supposed amount of lots. For example, I'm supposed to add one lot every 2 times I lose. I always start with 3 lots. Sometimes when I get to 5, I get scared, jittery, and place 4 lots instead. Then I win, and make back just enough to recover the losses before that. One week's effort went to waste. I've since told myself to get over that fear, and my account has moved forward greatly ever since. For example, I've increased my account by $1500 in these 2 weeks based on this realisation alone. (ps I'm trading minilots, not yet standard lots)
c)Indecision is my greatest weakness. I hesitate too much.
No hesitating. I set a p&c (parent & contingencies) order. Where to enter, where to place the stoploss, and where to take profits. It happens automatically even when I'm not looking at the computer, so there's no chance to hesitate even. I set price alarms to message me on my phone when my stoploss is hit, when it's +50 pips so that I'll move my stop to breakeven, when its 100 pips and when its 200 pips.
d)I am not focused as much as I should be!
I set an alarm on my phone when it's time to trade. I do not look at the charts before it's time to trade, for fear of being tempted to enter. I try to keep as emotionless as possible, and that keeps me focused on the task at hand. Do what you have to do.
e)I do not stick to my trading rules and not always apply my trading plan.
Killer mistake. That was how I lost my first account. You only need to get burnt once to know not to ever play with fire. I play strictly by the rules.
f)I still haven't defined a good money management system.
I trade under 2% risk. My stop loss is 27 pips. My take profit is either 100 pips, 200 pips, or beyond (I move the stop of the last remaining lot to follow the latest pullback). I increase a lot for every 2 losses. Having this MM plan puts my mind at ease when there's a string of losses.
g)I believe that I have magical powers and can predict the future.
I wish.Those are very interesting tips to fight the weaknesses listed. Thank you for sharing your solutions.
We have discussed our weaknesses while the trading but it is important to discuss that how to overcome these problems as well. No body is perfect in the forex trading market and even if you find the most successful trader then surely he will tell you his weakness as well. We need to work on that part to overcome our problems concerning to our weakness during the trade.
Very true. Solutions are very welcomed in this post. Maybe everyone can share how they deal or try to deal with the weaknesses.
my system works 85% of the time but i can't control my emotions on taking profit and stoploss
My another trading weakness is trading the news. Most of the time I was not in profit while trading the news but I can't stop myself to trade the news.
"Trading News" is a nono for most of us without the institutional news feed, army of analysts to help us trade it, and a few billion in the account.
Most trade the news strategies are just glorified gambling.
Look funny
my system works 85% of the time but i can't control my emotions on taking profit and stoploss
It look funny but not, i have the same weakness as yours. Normally, most of my trades give me profit but i believe that all moves will give me 200pips and above which will make me loss the trade again even with -pips most of the time.
i need to work hard to stop my greediness.
"IF YOU GIVE A MAN A FISH, HE WILL HAVE A SINGLE MEAL BUT IF YOU TEACH HIM HOW TO FISH HE WILL EAT ALL HIS LIFE"
News
"Trading News" is a nono for most of us without the institutional news feed, army of analysts to help us trade it, and a few billion in the account.
I do agree with you 100% because this aspect of Fx "News/fundermental" trading has let me loss my shirt twice.
I've stop trading news for now until i see more reliable software or weapon too trade News but for now i've move to highly TF to avoid News. This is helping me for now.
"IF YOU GIVE A MAN A FISH, HE WILL HAVE A SINGLE MEAL BUT IF YOU TEACH HIM HOW TO FISH HE WILL EAT ALL HIS LIFE"
I have to agree with previous most about news - it is a no-no. No matter how much you try, it is extremely difficult to figure it out!
My 'weakness'
Not knowing how to spend all the money I consistently make trading....man I love this game....
Pilot