First of all, let us clarify, that what we mean by a "bad trade" is simply a transaction that was unsuccessful . There are no "good" or "bad" trades as the whole system of trading is random and unpredictable. In other words, if we knew how to differentiate between bad and good trades, then technically, we would always choose to enter good trades, right? Or should we wait for our trades to close before we label them "good" or "bad"?
Anyways, moving to the main part, we would like you all (especially beginners) to embed the following in their minds forever: trading is a game of numbers and probabilities.
No, you will not have a 100% win rate.
No, you won't be making 200 pips per day.
Yes, you will have losses.
Yes, things are gonna get emotional.
The above-stated may seem bizarre to newbies. "Like, what do you mean I cannot make 200 pips per day? This Free Forex Signals group on Telegram shares 50 signals per day and promises me a 100% return per month and you are telling me I cannot make 200 pips a day? Hahaha, do not make me laugh".
Been there, listened to that.
At the beginning of our trading careers, we are greedy, emotional, and extremely optimistic about our skills and abilities. We get angry, question ourselves, change our strategy every second day and so forth. All that up until we get more mature and wise in the markets. With time, we gain experience and double up on our skills; and that is exactly when we become acknowledging the market for what it actually is and understand how it functions.
Experienced traders think, move, and act in probabilities. They predetermine their risk, calculate all possible outcomes, execute at ease knowing that they are following their strategy. To put it into simple English, they do not get mad over one loss, because they know that their backtested and fully planned strategy is there to lead them towards long-term profitability and consistency.
Anyways, moving to the main part, we would like you all (especially beginners) to embed the following in their minds forever: trading is a game of numbers and probabilities.
No, you will not have a 100% win rate.
No, you won't be making 200 pips per day.
Yes, you will have losses.
Yes, things are gonna get emotional.
The above-stated may seem bizarre to newbies. "Like, what do you mean I cannot make 200 pips per day? This Free Forex Signals group on Telegram shares 50 signals per day and promises me a 100% return per month and you are telling me I cannot make 200 pips a day? Hahaha, do not make me laugh".
Been there, listened to that.
At the beginning of our trading careers, we are greedy, emotional, and extremely optimistic about our skills and abilities. We get angry, question ourselves, change our strategy every second day and so forth. All that up until we get more mature and wise in the markets. With time, we gain experience and double up on our skills; and that is exactly when we become acknowledging the market for what it actually is and understand how it functions.
Experienced traders think, move, and act in probabilities. They predetermine their risk, calculate all possible outcomes, execute at ease knowing that they are following their strategy. To put it into simple English, they do not get mad over one loss, because they know that their backtested and fully planned strategy is there to lead them towards long-term profitability and consistency.