JasperForex

10 more things I learned in my short trading career

FX:EURUSD   Euro Fx/U.S. Dollar
1. Go online and connect with other traders, ask the right questions (keyword: right) and talk shop. Joining TradingView is the best decision I made by far since I started trading. Social networks add value and my trading has improved a lot by being exposed to different ways to trade and by being able to see what works and what does not. But never trust a trader at their word; always do your own research.

2. One thing is certain; there will be losing trades. With good money management techniques you give back little profit when the market moves against you and you can accept losing trades as a controllable cost of making yourself available for the winning trades.

3. You cannot control the outcome of a trade. You can only control the setup and the risk you accept.

4. Patience is key. That’s why I (being a day / swing trader) don’t work with daily targets, but rather with monthly targets, to avoid chasing trades and forcing setups that are sub par. Take only good set ups with sufficient confirmation and if you don’t see one: don’t trade.

5. No single system will be right 100% of the time. Build the case for entry, using several kinds of input into your decisions. Go for confluence to increase the edge.

6. Don’t psychologically micro manage your trades, monitoring each candle as it develops. Once stops and targets are clearly defined, let a trade play out. Sometimes stepping away from the screen helps.

7. A trading plan can help you identify whether a series of losses happened due to market conditions or due to trading errors.

8. I look at trading as running a small business with no customers, no suppliers, no psychical stock to maintain, no brick and mortar business space to rent, no government mandated opening hours, no chasing of your payments, no employees to manage and no colleagues to depend upon. What’s not to like?

9. It helps to be a positive person. I don’t mean delusional or overconfident (there are plenty of those), but just positive. Trading is an activity where analysis, risk and stress come together and your trading psychology will be helped greatly if you have a positive disposition.

10. Practise prudent portfolio management where you start small and slowly grow the portfolio step by step by adding more pairs / instruments.
You don´t need to be a weatherman to know which way the wind blows - B. Dylan
Hey Jasper, these are great points that you have made here, some I already knew, but I enjoyed refreshing them, but some I didn't knew at all. I'm still working on stepping away from the screen and letting my trades play out by trading higher time frames, like 4 hr or daily, its a process that I'll keep working on. I also agree with joining Tradingview as my best decision that I've made. I got to learn so many different ways of trading the markets. It's amazing to see how different traders trade the markets so differently. BIG THUMBS UP to TradingView website creators and Thank you Jasper for sharing these critical points with all of us, truly appreciated :)
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JasperForex PRO moneymaking
You are welcome. Regarding number 6, knowing how to do something and actually doing it can be two different things. Its a but like dieting / eating healthy. I am sure we all know how to do that, but actually doing it is more about willpower / discipline than actual knowledge. Its the same with number 6.
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moneymaking JasperForex
You are absolutely correct mate. Its all about discipline and willpower. You have to force yourself to start doing all these things. It's like adapting to a new habit, it will be difficult at first, but as you keep on doing it over and over again, it eventually becomes part of your daily routine. Thank you for the dieting analogy, appreciate it :)
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I love all points, but i think number 9 is very important. Great post as usual.
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Thank you for saying so and I agree number 9 is key.
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I think 9 is the one of the most important too. There is often a grey area between misplaced confidence, self-deception, conviction and delusion. These are no doubt psychological issues, that haunt many a new and seasoned trader from time to time. The way I see it, is that the charts are out there. Decisions are made 'inside' us and are subject to so many emotions and cognitive mistakes in the mind. I've discovered quite painfully that lack of knowledge and experience can also lead to misplaced confidence and conviction (when I look back on some of my worst trades).

Trading can be a very lonely business. Sometimes one is not his/her own best company. But on the flipside, too much company in forums, news items and listening to 'guru speak' can lead to wrong decision-making. I imagine it's about finding the right balance.
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JasperForex PRO Captain_Walker
Well said! Trading is a balancing act in all aspects (mind, method and money) and almost every decision you make has a trade off.
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IanMFX JasperForex
Great post and very good for newbies in trading, like me. Aren't we saying that Trading is an Art where we're analysing, studying, perfecting, etc. :-)
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Yes and practising, repetition is the mother of skill :-)
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Great write up. I especially like #8 - It's often overlooked but such a good point.
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JasperForex PRO __SpecialFX__
Thanks. Number 8 is actually what I like most about trading :)
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Some of the above are about who we are - our personalities and our psychology. I wanted to add a few points from my own self-observation and having observed a bunch of people out there who are failed-traders (who have given up, and mouth off in some online forums and YouTube, that trading is nonsense).

Core personality features I see as particularly important in this business (and some do overlap each other):
1. Toughness and resilience - taking the hard knocks, not being crushed by failure, rising again, facing reality.
2. Determination - a refusal to accept defeat. Probably a double edged sword as it could lead to even more catastrophic failures by the most determined who just have not understood and applied the tried and test good principles.
3. Ability to filter out noise through approprtiate concentration - too much can be going on at times.
5. Emotional management.
6. Receptivity to new ideas and ways of doing things.
7. Mental flexibility.
8. Ability to reflect and accept evidence-based criticism.
9. Critical thinking skills.
10. Ability to learn from mistakes (even if repeated).
11. Self-management: Getting the basics right: sleep, food, recreation, time-management etc.
12. People management i.e. dealing appropriately all the naysayers who actually don't know what they're talking about.

I'm far from perfect in some of these areas but at least I can assess where I have my work cut out. One doesn't have to be a perfect being but if one knows ones weaknesses, that's tremendously better than not knowing. I share my thoughts if they benefit others.
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JasperForex PRO Captain_Walker
Thank you for this excellent comment, even though number 4 is missing ;-) they are all spot on. I wanted to list the ones I agree with most, but I agree with all.
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LOL! Thanks.. #4 is obviously attenton to detail!! :))
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johncarter_oz JasperForex
You found the invisible point 13. Attention to detail :)
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Pip Diddy in da house! =D
Sup man great post, all very important points in regards to trading! Great post! =)
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Thank you for saying so, I appreciate it.
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Great points Jasper. Always good to keep looking at and learning from points such as these; some points are the practical application of ideas, some common sense and others the psychological discipline of trading...and many sub categories in between. Point 6 is a sure way to develop a lot of negative stress and potentially lose a lot of money... from personal experience!
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Yes, I have personal experience with that as well. Hence the lesson learned. Every now and then I just step away from the screen with active trades (but always with SL and TP set in my broker platform!), safety first.
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Point no. 6 is what I really needed someone to tell me right now, and you just did! Thanks, these are quite insightful.
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Thanks for the kind words, hope this publication helps you in some way.
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Hi Jasper great comment you have made.
We are all still learning even the pro get it wrong.
If we all help each other, long the way, we are all united ,( win win ).

god bless to all traders
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JasperForex PRO sham.basra.9
Agreed, this is a collaborative social environment for traders of all levels and the market is big enough for all of us to gain something from helping each other.
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Thanks for sharing! Couldnt agree more!
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Sure thing! May the pips be with you.
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Spot on as always Jasper!
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JasperForex PRO nick.harrington
Cheers :)
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Great post !!
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JasperForex PRO ExperienceTrading
I appreciate your response, hope its helpful.
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I'm still fairly new to trading and I see validity in all these points. Great write up, thanks for sharing.
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JasperForex PRO ElevensTrader
You are welcome, thanks for leaving a response.
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Excelentes consejos Jasper!!
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Gracias!
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I really really love point 8......love it...love it...love it....You have to have experienced debt collecting, budgeting, stock control, customer service to really understand how much I love it :)
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JasperForex PRO johncarter_oz
Haha yes exactly, I hear you on that :) Thanks for leaving a response.
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Muchos Gracias!!!
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De nada!
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thanks.........i think i would give up today and do other things..........and suddenly his article came up. Is it godsend or otherwise i dont know. I think i just push a little bit more.
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JasperForex PRO kesteneldin
Don't lose your motivation, develop and maintain a detailed trading plan, never trade with money you cannot afford to lose, backtest your strategy to proof to yourself it has an edge and work on your trading skills on a daily basis, slowly but surely improving your results and confidence. Push yourself every day, put serious work into it and you will improve. Good luck you sir!
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Don't give up. Just do it differently from what you've been doing. Push more - but pushing is about working you. This is certainly not about anything external to you - even if markets are turbulent or equities are in free fall. If one wo/man can, another can - I say to myself (obvious exceptions excluded in this statement). There is a natural aversion to examining all messed up trades. Why? Because one is likely feel pretty stupid. The 'How could I have been so stupid?' is exactly where one needs to be. I've been there mate and on occasion I do go back.

The darkest watch of the night is the one before the dawn. Many a profitable trader has lost big time on the way up. I'm not saying that's some sort of 'rite of passage'. But if you check on the net you'd hear a very similar story from almost all the successful traders. It's probably a strange thing to say but it's a though blowing up an account is such a reality check, that it induces radical change in approach/methodology (or whatever) - for those who persist. Those who walk away - that's the end of it. They do not have the mental flexibility required to cause change in themselves. That's my take on it.

The invention of the first filament light bulb came after a demoralising few thousand failed attempts. If Edison had said, "This is impossible.. I give up.." then we could well have been delayed by a few decades in having electric light sources.

Have a look at Edgewonk http://www.edgewonk.com/ - I've found that it's an impressive tool for a reasonable investment. It doesn't make you better. Nothing out there makes you better. You make you better using any tool that you find workable (and you work it).


I'm also using Trello http://www.trello.com as a means of working on trades. See partial screenshot: http://www.scrvault.com/aA - I like this because it's one-place thing where I can see all my ideas and work them very strategically.
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JasperForex PRO Captain_Walker
Interesting toolset! I use MS Office (spreadsheets & docs) to log actions / checklists / trades and to calculate several performance indicators. You have some fancy tools there, I will have a look at them. Thanks for sharing.
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Edgewonk is Microsoft Excel (works well in both x32 and x64 versions). I've begun working it - as it does much of the analysis of your trades once you enter the data. By analysis I mean it feeds back lots of strong and weak spots etc.

Trello is free (unless one wants more fancy features). I've been using Trello more just to follow up ideas, track what I'm doing and why, reflect more closely on mistakes etc in more detail.
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JasperForex PRO Captain_Walker
Thanks I have bookmarked both sites and will investigate.
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Thank you so much for all 10 key things.

I really like #2 ... yes! I need to improve my money management skill.

Again, thank you so much.
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JasperForex PRO FisicA_Investment
Sure thing! Lose small and win big, thats where its at. I work with a minimal reward - risk requirement when deciding to take a potential trade or not.
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Brilliant advice. I needed to read something like this. Thanks for sharing
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Thanks for leaving a response. I hope it helps you somehow and may the pips be with you :)
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198ret7 JasperForex
And may the pips be with you also :)
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ok bro, we have strong market moves around the globe and action, and Trending Today : we have "10 more things I learned in my short trading career" is still on full screen, haha
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Yes, most of the comments / likes were received today, perhaps because of the strong market moves.
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is your career over?
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JasperForex PRO Bigpussycat5.
No, but I have not been trading that long (compared to some veterans on this site), hence "short career" :)
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Hey Jasper, i like these points especially as i am new here. I'm already enjoying the decision of joining Tradingview. I hope i will be seeing more of these.
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You will not regret having joined this site, awesome charting tools and a great community. If you go to my profile you will find -apart from actual trade setups- more educational posts (if you scroll down the publications), for instance on how to make a trading plan, how to select a broker, how to calculate and improve your expectancy, how to use stop losses, how to use currency correlation and how to use fundamentals in trading. All based on my own experience and on what works for me, you might find some info usefull. Thanks for your response and good luck to you.
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GP2075 JasperForex
Thanks. i will check it out
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I will post them here in the comments for convenience :)
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GP2075 JasperForex
where can i find this, i can't see it at the bottom as suggested. ( If you go to my profile you will find -apart from actual trade setups- more educational posts (if you scroll down the publications), for instance on how to make a trading plan, how to select a broker, how to calculate and improve your expectancy, how to use stop losses, how to use currency correlation and how to use fundamentals in trading).
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A Forex Trading Plan Example Pt. I
A Forex Trading Plan Example Pt. II
Selecting the Right Broker for You Pt. I
Selecting the Right Broker for You Pt. II
Trading Fundamentals
Expectancy: How Profitable is your Trading Strategy?
Expectancy Revisited: Improving your Profitability
10 key things I learned in my short trading career
Currency Correlation, Does It Matter?
Non Charting Tools for Forex Traders
Stop Losses, Love Them Or Hate Them
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Very nice, thanks for the post
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Thank you for saying so!
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Nice one Jasper. Big fan of your work dude.
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JasperForex PRO DimiAverilla
Thank you for your kind comment.
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Awesome post! Thanks for sharing :)
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JasperForex PRO KaizenTrader
Thats all right :)
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Definitely a great post. After my last few days trading, I needed to revisit those points and get my perspective again! Thanks Jasper.
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Hope it helps, good luck and may the pips be with you :)
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Great post!! I'm quite new here also and have already learned alot since I joined!

As I also noted in the last idea I published one important lesson I learned in the past couple of days/weeks is that one always tends to expect things to happen right away...
What I mean is: after having identified a pattern (or others doing it for you, thank you Tradingview members :-) !) and having thought up a possible setup based on that pattern, one tends to disregard the timeframe it took to develop the pattern, and thus also ignoring what a realistic timeframe would be for the further setup to unfold!

I guess we are just impatient creatures... So it's as they say: patience is key (your number 4)!
And stepping back once and a while and looking at the bigger picture should certainly help to put things in perspective!

What I also learned: don't think you will not make the same mistakes which you made in the past, certainly if they are based on emotion!
Human emotion/psychology is so much stronger than pure reason; and feelings of greed, fear, not being able to deal with losses (a problem for me still!) will not go away just because you read about it, acknowledge it or have experienced it!! Know that and always keep that in mind, or put a post-it on your computer screen with that sentence (note to self...)!

As you said: a trading plan and written down (yes, write them down!) rules or even filling in a genuine checklist before you enter a trade! This might sound strange and foolish to some, but that's what you would do in any business, and it's a basic tool found in every QA or safety/risk analysis program. And if it will help you catch more pips in the end, then why wouldn't you do it!

Thanks again for your post, happy trading to all!

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Thank you for the elaborate response with many good tips and common sense remarks. I fully agree, I would never start a business without a business plan, never start a project without a project plan and never sell a product or service without a sales plan so why would I even consider trading without a trading plan?
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Good one!
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