I remember my worst ever trading day as a relative forex newbie, I’d been trading for about 2 years, my goal was always to scalp, maybe 50 PIPS a day if possible, just a couple of winning trades off the 5 min chart. That way I could have a massive compounding effect on my account, 2 winning trades a day maybe, 20 to 30 pip each, of course there would be losses but these would be far and few between. Of course on the days where I would make a losing trade I’d simply have to put two winners on, so at least I’d be one trade ahead. I’d had a good run, or what I thought was solid trading record at the time, I’d made a profit every single day for 2 weeks, this was my acid test, if I could make a profit every day for two weeks, then surely I’d be good enough to trade real live proper forex. After all it’s no mean feat to do this, it is actually quite an achievement in itself, but when there’s real money on the line, and it seems your whole future depends on this day’s trading it becomes a different story. Success on this day would seal my future as a forex trader and soon the millions would be rolling in, it was all arranged, I’d funded my account with £100, not a staggering amount of money, I’d lost more right at the start when I had absolutely no idea of what I was doing. This though held much more significance than just opening an account putting some money in it to test the waters, and then losing it in a few weeks, this was to be the day I proved my success, my 2 years of study would come to fruition and I would mark this day as the first day to my first million.
There Was Some Bad Forex Trading.
First trade goes well, 20 pips, excellent, I’m vindicated with my choice, my confidence is high, far too high, I place another trade and it loses, but as a professional trader this is of no concern, losses are just a part of trading. But even at that time I hadn’t really realised what a trading session meant, normally it means that during the opening hours of a session the market will make a move and then hang around, this is most true of the London open, the New York open can have more volatility and you might see the market move back one way before making the largest move of the day in the other. That’s it, you probably have 3 opportunities to have a trade during a typical forex trading day, I was on 2 trades and I’d only been trading for half an hour or so. I quickly place another trade, I was at break even, so I needed a winner to get back to where I was after my first trade, and that’s the start of the road to ruin, I wasn’t trading the market any more, I was trading what had happened, what I needed to happen and trading just about anything expect the chart in front of me which was by now starting to take over my whole being. I didn’t really have a solid forex trading strategy, I had an idea of one, I’d had some mentoring, I even had a flowchart for the choices I should make at which stages, I understood it pretty well, but I never actually followed it on a daily basis, so I had no real plan that I could stick to. Well the inevitable happened, I lost trade after trade, maybe the odd winner, I’d probably had placed 30 or 40 trades by the end of the day, I’d been rationing myself over the last couple of weeks to 6 a day maximum, but 6 is a stupid amount of trades in a day to start with.
My Exasperation Of Forex Trading.
By late in the day, I’d lost most of my £100, and felt totally disheartened, I’d been so looking forward to the fist day of my successful trading career, and my account was like it had been set on fire, I was frustrated, embarrassed, I was literally banging on the floor crying from the disappointment. I’d be wishing I’d never have even heard of forex, I’d be wishing if I could just turn the clock back, just a few hours. How could this have happened, but you never realise how easy it is for the forex market to get the better of you. Psychology is a big part of the equation, you need to have a very pragmatic, calm and controlled approach to forex, and have a proper solid trading plan in place that you follow absolutely and always.