Psychological problems in Forex trading 2.0
Hello everybody! In this PDF I am going to explain you the biggest psychological
problems, mistakes and traps that I have had in my trading carrier and I’ll show you some
solutions in order to avoid them and learn from my mistakes. In the previous PDF I gave
you some tips but in this PDF I am going to go much deeper in this stuff with much more
solutions. Let’s start:)
I have been trading for three years. When I had started trading, I thought that I would
learn everything about trading within two weeks and I am going to become a billionaire in
that year. Of course it didn’t work well.
What were my biggest problems in my carrier? I summarize my biggest problems in just a
few words: impatience, indiscipline, fear, overtrading, revenge trading, lack of quality
trading and so called long-term-thinking mindset, “aggressive exit”.
My situation was the next: I wanted to become a billionaire within a week so I opened a
long trade. It was a losing trade. OK. I didn’t wait for an other, GOOD opportunity so I
opened a short just after my previous trade on the same pair. After I had opened the
short, the price quickly reversed and my SL was hit again. What did I do? I had been
angry because of my two losing trades so I opened a long again just like five minutes ago.
You can find out what happened after I had opened. Yes. The price reversed and my SL
was hit again. I had a lot of similar situation, that’s why I was afraid to open a new trade.
Why? Because I had three or more losses in a row without a winner trade. When I had
seen a nice, good opportunity I didn’t take it because I was afraid of losing. Where was I?
I had 3 or more losing trades from 3 or more trades so my WR was 0%. I wanted to have
winner trades but I daren’t open the trade. Sometimes when I had opened the trade, I
closed it very quickly. As a result, I didn’t have any trades, neither winner nor losing
trades. I was thinking about losses. What if the next trade would be losing again or
breakeven? What if I wouldn’t win? In the first two years I couldn’t change my mindset so
this Vicious Circle was repeated again and again and again.
Now I would like ask you for something. I summarized my biggest psychological
problems just above. You can find these problems in my situation. You can find 8
sentences in the story and these sentences refer to my psychological problems. Try to
find out them. Check them below👇
Impatience: I wanted to become a billionaire within a week.
Impatience + Indiscipline + Lack of quality trading: I didn’t wait for an other, GOOD
opportunity so I opened a short just after my previous trade on the same pair.
Revenge trading: I had been angry because of my two losing trades so I opened a long
again just like five minutes ago.
Fear: I was afraid to open a new trade. Why? Because I had three or more losses in a row
without a winner trade.
Lack of so called “long-term-thinking” mindset: When I had seen a nice, good
opportunity I didn’t take it because I was afraid of losing.
Fear + Lack of so called “long-term-thinking” mindset: I wanted to have winner trades
but I daren’t open the trade.
Fear: I was thinking about losses.
Fear + Aggressive exit: Sometimes when I had opened the trade, I closed it very quickly.
How can you avoid these problems?
Impatience: We all want to achieve Kev’s level in trading. It is possible, but guys! Kev has
more than 12 years of experience in trading! We can’t become billionaires within a week
and we are not the same. Remember that Kylie Jenner made his first billion when she was
21. Bill Gates made his first billion when he was 31. The world’s richest man, Jeff Bezos
became a billionaire by age 40, while this number is 56 in case of Warren Buffett. You
see? Everybody can be a billionaire, but it takes time. So the best that I can recommend
you to be patient and focus on your own way. Don’t compare yourself to others because
it destroys your happiness and inner peace. Focus on your own life and improve yourself
every day. Remember that Rome wasn’t build in a day.
Indiscipline + Lack of quality trading: Ask yourself: Do I want to become an excellent
trader? Do I want to quit my job, make a lot of money without bad feelings? Do I want to
enjoy my life? Do I want to give everything to my family with Forex trading? If you said
“yes”, then try to take only the best opportunities, stick yourself to your trading plan,
improve yourself and never give up. If you notice that you become undisciplined or you
try to take every opportunities that you see, read that section again. Yeah you could take
every opportunity, but there are some cases when it doesn’t make much sense. Less is
more. “Every opportunity” contains high probability and low probability opportunities as
well. I don’t like to take every opportunity that I see. I like to take only the HIGH
PROBABILITY opportunities. It gives me the highest chance to increase my account
rapidly. So remember that: Disciplined, Quality trading = Successful trading
Revenge trading: As I said, we don’t have to take every opportunity. As you read, I took
a high probability long and it was a losing one. Then I took a low probability short and a
low probability long again. They were losing ones because I had been undisciplined. I
wanted to recover my losses but instead of recovering, I lost even more because of
undisciplined behavior and revenge trading. So the best that I can recommend you to
stick yourself to your rules, don’t want to recover your loss if you don’t see nice
opportunities. If you don’t see any nice opportunities, then you don’t have the chance to
recover your account. Be patient, disciplined, stick yourself to your rules because it is the
only way to become better and financially richer.
Lack of so called “long-term-thinking” mindset + Aggressive exit: These two
problems are almost the same. You close your trade before your tp (aggressive exit)
because you want to win or want to recover your loss. It means that you don’t think on
long-term. You can see two examples with different percentages below.
If you make only 30% per month, after two years your result will be:
If you make only 31% per month, so every month you can add 1% to the 30%, check the
result:
Do you understand why “Long-term-thinking” is so super important?
In the first month the difference between 30-31% is only 10€.
After 24 months, the difference is more than 100.000€! (1st and 24th row in the
spreadsheets, check the “ENDING BALANCE”)
Do you remember what I have written? Rome wasn’t built in a day. Small steps will make
a huge difference.
Bonus: Drop me a message in Slack with some percentages and I make you a personal
spreadsheet with your own percentages🤜 🤛
Hope you enjoyed this PDF and you could learn something from my mistakes. If you have
any questions or you need some motivation, feel free to contact me and I’ll do my best to
help and motivate you.
PDF by Boros Balázs