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Why Big Gains Will Cost!

man Trading forex

Big risk will lead to big rewards, ... and big losses. People will often want to tell you about their wins and less about their losing trades. Firstly, you should just keep your trading results and returns to yourself as they are nobody else’s business but yours unless your ego feels that it needs to express this to others and if you do, then you need some serious work on your trading psychology.

When you take big risks either on selected trades, it is possible for your account to grow at a rapid rate. Your equity curve is very steep, and you feel great because you have finally mastered the markets. You may even hang onto trades that are going very much against you because you are banking some good winners along the way.

Not understanding your mindset will fracture your trading results!

The demons from within are removing any clarity you started out with when your curve was steady and reached in a methodical manner.

Have you noticed how we become conditioned to situations or circumstances? Governments do this to us all the time eg a gradual increase in taxes for certain items and once we have excepted the conditions in our head we view it as normal and no further action is taken.

When trading it is the same, your account will explode and this becomes normal. Now that 7% each week is reached the 4% from the previous week now looks below average. The calculator is used a little more often so you can work out how much money you will make each and every month.

What has happened here is that the trader is focused on the wrong thing and that is the money.

Your focus needs to be on the process and not the outcome. 

When the focus is on the outcome (money) rather than process (trading and controlling risk) then you will only ever end up with this disappointing result, things will cave in for you, it’s only a matter of time.

You have  been conditioned to except very high returns whilst taking a high level of risk.

I have known traders who have sold their houses to trade and have ended up losing it all. Others who have gained 30% in a few months and​ focussing on the outcome only ever ends in the same scenario, tears.

When you are trading and chasing  money eventually it will run you down and will need to pay up.

This is what happens when ego and greed take over your trading rather than focus on process. In my new Ebook I dedicated a whole chapter to explain how to avoid getting emotional and lose focus while you are trading.

I suggest you download and read it; it's FREE!

Happy Trading, Steve.

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