When we start one of our FX Power Courses, we ask new students to introduce themselves and let us know a little bit about their trading interests. If you take their explanations at face value, you would be surprised at what you hear. Some are there for the excitement of trading, while others are there because they didn’t like the stock market or other funded forex
similar reasons.
There are times when I want to remind them to be careful what they ask for as many times they are not focusing on developing a consistent, profitable approach to trading. Many experienced traders believe that everyone gets what they want out of trading, they just don’t realize it. Trading can be very exciting, win or lose. As soon as you leave the stock market, you are out. But neither really set the goal of improving profitability.
That may be fine, but if you are there to be a profitable trader, do what profitable traders do. You may find it to be quite boring….but professionals find excitement in other places, not necessarily in the financial markets. Be specific about your goals and you may find that you can achieve incredible things.
A loosing trade
In my past entry, I wrote about a poor trade I entered about a week ago. I purchased 3 lots of EURUSD at about 1.4920, expecting to climb all the way to 1.50. Instead, the Euro retraced back down. I kept my trade open for a few days expecting it to rally back, but instead the Euro traded lower day after day and I decided to close my position at 1.4750. As I wrote previously this was a very poor trade for many reasons. I risked way too much money, just to potentially capture a small profit (about 3 x 80 pips). After closing that trade – which resulted in a 500 pip loss, I was a little upset at mysefl. I looked back at the trade more closely, and it became very apparant that I had completely ignored the 1:2 risk/reward ratio. I had risked (and actually lost) A LOT more that what I could have realistically/potentially made.
This was my first “real-money” loss and I felt a bit discouraged. I feared that any trade I would enter would result in further losses and that it would be impossible to make back the money I had just lost. I decided to take some time off from trading – to clear my mind in a certain way. As a result I didn’t trade at all last week. I did stay informed on the latest FX news and observed what was happening but did not get involved.
Now that a new week has begun I am ready to actually trade. I’m about 500 pips down from the original balance on my account and I fully intend on regaining everything that I’ve lost and go back to a positive balance. One good trade at a time.
Tomorrow will most likely be an interesting trading day as the Fed will announce whether it will or will not cut interest rates and if yes, by how much. The most likely outcome is a 25bps cut, but if the Fed decides to either cut by 50bps or leave rates unchanged, the markets will react strongly and might offer some very good trading opportunities.
Trade Directly Through Charts?
Up until recently, the few choices traders had (outside of LEGENDAFX) to place trades directly through charts was plagued by:
Poor execution quality/pricing and/or,
Unstable or poorly designed technology
Now that’s all changed…if you haven’t already, check out our newly revamped funded forex charting package that comes free with our Trading Station platform. If you want to place trades directly via the charts and being able to manage your open positions and orders on the charts then I think you’ll really enjoy what we’ve done with Legendafx.
By leveraging our existing technology and coupling it with our trade execution capabilities, you’re probably going to discover that Legendafx is one of the most ambitious undertakings in this regard. Where else can you get the beauty of trading via charts on an external execution platform?
If you already had our Trading Station installed then it will self-update itself with the newest features/functions. If you need to install it for the very first time just jump onto our download page to get your hands on it.
