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Let’s talk about positive mental devices you can use to protect your principal.
■ During the trading day repeat to yourself over and over, “At all times, I protect my principal.” Say it out loud. Don’t just murmur it, shout it with enthusiasm! Sound crazy’.’ Try if. It works.
■ Before you click on the buy button, ask yourself:
1. Why am I entering this trade? Docs my trade coincide with the present market trend? Do primary market indicators support my decision?
2. Is my entry point technically perfect?
3. Do I have a rational, thought-out game plan? What is my exit price if my trade goes sour?
4. What is my profit target if it performs well?
With practice, you’ll soon be able to answer the questions above in five seconds or less. If your answers are quick, concise, and positive, then the trade should be as close to a sure thing as possible. If you fumble or over-justify one of the answers, reconsider placing the trade at all.
Please take a personal oath right now to protect your principal. Print the rule and tape it lo your monitor. Tape another copy on your bathroom mirror and refrigerator door. Write it on the back of your hand—whatever it takes to etch these words onto your brain and every fiber of your being. Treat your trading account as any professional treats his or her tools, with concern and respect. Protect your account at all times, and don’t expose it to carelessness or neglect. If you care for it properly, it will care for you—and grow at the same time.
Nothing blows your concentration and clouds your judgment more than keeping a menial calculator running in your head, tallying up the actual dollars you’ve made and lost each minute.
While we’re at it, let’s take this a step further. Please don’t get up in the morning and announce 10 your partner/spouse/children/pct that today, you “have to make a thousand bucks trading.” Trust me. You’re setting yourself up for failure. I’ve done it. Other traders have done it. It’s a losing mentality—guaranteed.
In fact, stating a set goal in dollars you must bring home every day, or any day, especially if you’re a beginner, assures It probably won’t happen. The need to make a certain amount of money colors your perceptions of the markets. It pressures you to enter trades that are bad bets because you promised yourself— or worse, someone else—that you would bring home trading bacon.
Besides, the day you make that promise usually fails on the rockiest market you’ve witnessed in weeks. Indicators warn you’d be best on the sidelines. But your pledge echoes in your mind, so you force trades. Odds are you will lose money. Now you’re embarrassed and annoyed with yourself. That punishes your self-esteem, which automatically leads to more losses.
Feel like getting several forex software? Stop, before you buy anything you should read the reviews of the forex software you want to get.
For more info about forex software – read this review.
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