Taking Responsibility for Your Actions while Trading Forex
A look at the importance of a trader taking responsibility for his or her actions while trading forex.
While growing up, one of the lessons we get taught is the importance of accepting responsibility for our actions. Parents drum this into the ears of their children; but, in forex trading, most traders throw away this important life lesson. When the trader cannot take responsibility for his actions while trading it leads to an inability to take corrections and improve with every lost trade. With the honesty that comes with taking responsibility for one’s own actions, a trader will be able to pick out the underlying lesson with every loss.
The whole idea of learning to trade forex is being able to understand what works at any given time and what does not work. With this skill, you will be able to adapt to the changing conditions and maintain an equity that is ever on the increase. This is totally impossible if you are not honest with yourself, and if you will not take responsibility for your trading actions.
Common Excuses for Losses while Trading Forex
“My broker hunts stop loss”
Traders often use this when trades hit their stop loss and reverses to the direction they had anticipated; but the truth is that 99% of the time, this is a baseless sentence and a lame attempt to look for an excuse. This argument can only be valid if the market did not go as high or low as the trader’s stop loss on other platforms. In the same vein, any trader that focuses on how brokers cheat traders out of their money instead of focusing on self-improvement is living in denial.
“The ECB President’s statement spoilt my trade”
The ECB president, or any central bank president for that matter, does not know what position you took before their statement. They have many other things to worry about instead of a trader in one corner of the globe with a few thousands dollars in his or her trading account.
Before a market moving statement is made, the market already prices in what the impact will be. If the ECB president is expected to make a speech that will move the markets upward or downwards by tomorrow, you will start seeing signs of bullishness before this event takes place. If you get into a bullish trade then and your stop loss gets hit at the time of the release, accept it and patiently wait for the next trading signal instead of trying to find someone or something to blame. The same way the market went against you, it could have also shot up/down in your favour, giving you huge profits – and you would have given yourself a pat on the back for making a good decision!
Avoiding Excuses while Trading Forex
The only way to avoid excuses in trading is by sticking to your strategy. If you lose a trade even when you followed your strategy, simply accept the loss and move on to the next trade opportunity that presents itself. The market will always ebb and flow, and with this comes profit and losses. You can’t run away from it! If you still find someone to lay the blame on for every losing trade, then you are not yet a good trader and, with time, you will fall into the bracket of people going around in forums preaching to other traders why no one can ever achieve financial freedom while trading forex.