By Ray Heriel
4:00Am Alarm clicks in. Time to Kick start the day, at this time of the day three quarters of the world is sleeping then i remember i haven’t checked my trades for the past 12 hours. I stand up then walk to my trading room grab my phone get internet access and juice up the MT4 (”Ting”🔊) this sound is so familiar to traders 🤣. Then i see 2 pips about to get stopped out summing a total loss of $260.
Heart starts pounding and i sense high pressure in my veins, Trust me when you get to 4,5,6 figures your losses are also overwhelming $260 dollars is equivalent to 580k Tzs Lost within 12hours. In this state you have to be very strong and detach yourself from crazy emotions because 90% of traders in this situation are likely to loose another $260 or even more by revenging. The hardest lesson i learnt during my early days as a trader is not trying to beat the market because no matter what you do, you will never be able to beat it. Taking a loss 1-3% per trade is okay but that second loss is purely self inflicted and comes out of anger.
After taking that loss you feel like the day has already punched you in the face. For a person like me it take days to spot another swing opportunity, so i have to clear my mind and make sure i am okay before getting back to the platform.
Later that day i grab my gear and went for Horse Riding, eat some Tacos and spent the rest of the evening playing GTA 5 (my unfinished missions.) Guess what happened the next day. I was so damn well and freshened and ready to kick ass in the market.
This is a short story with a big lesson to learn here. Research and Statistics shows that most traders blow there money so fast within a day because of trying to beat the market.
Lots of traders also can’t take it when they get a loss, Let me tell you something, As long as you are in this business, losses are inevitable so you have to manage your losses by cutting down the risk and trading less frequently.
You should actually have a realistic amount your are risking on your trading desk so you can see how much your are loosing when you take a loss that you can avoid doing silly mistakes like cheating on your trading methodology.
I risk almost $200+ dollars per trade so i convert them to Tshs and put them on my table. This technique looks lame and rubbish but it has helped me become so disciplined throughout.
You can copy me if you think it might help you but odds are it will.
Control your emotions and have a great weekend.
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Raymond is a professional currency trader with experience of 4 years trading the financial markets. Certified Risk Manager and Contributor at profxtigers.com
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