In any business, especially forex trading, you have an equal probability to lose as to win. Losses are unavoidable as nobody can predict the future. There are only three possibilities in trading, a win, a loss or a break-even. Once a trader has the misfortune to run into a series of losses it triggers a destructive behaviour on his part to get away from the misery of his situation. A simple forex trading secret says that the destructive behaviour starts when one indulges in activities that may seem harmless in the beginning. On excessive use, the activities become uncontrollable which puts your physical and mental health at risk. Smoking, drinking and indulging in other harmful activities are a few examples. Though these activities seem to help you with your situation, they only serve to cover up your problem and does nothing to solve it.
Sadly this is not a good approach to your problem with your forex trading account. To get rid of your misery, the first step is to acknowledge your destructive behaviour and take steps to put a stop to it. Instead of ruining your health and being forced to take action when the situation gets impossible, it is better and easier to put a stop to your destructive actions as soon as possible. The only way to solve your problem is to face it. Be honest with yourself and analyze the reasons for your failure. You cannot succeed without hard work, dedication and determination. Review your steps to find out where and what you have done wrong. You have to review both your system and yourself. Minimize your risk to make things easier for you here is a checklist to review yourself and your system.
Checklist for your system:
• Did you check your system or software thoroughly before trading?
• Did you use an out-of-sample data to check your system?
• Did you check your system code?
• Where you over-enthusiastic and over-optimized your system?
• Did you start with a small initial investment before going for higher transactions?
• Are you aware of the limitations of our system?
• Do you even have a system to help you in trade?
• If you do not have a system, how do you know that your strategy will be profitable?
Checklist for You:
• How comfortable are you with your system and your signal service?
• Is the current drawdown performance of your system satisfactory?
• Are you aware of the risks in using your system?
• Are you trading with comfortable amounts that you can afford to risk?
• Are your goals realistic?
• Are you over-dependant on your performance?
Your failure or success depends equally on your trading system and your emotions. Once you go over the checklist and find the cause for your problem, it is time to take action to solve it. Unfortunately there is no easy way to fix your problem, whether it is emotional or your system. It entirely depends on your determination and drive to succeed. Make sure to keep your health, both physical and mental, in top condition as well as your trading system.