Have you ever ever seen price move against you as soon as you enter a trade?
How about price hitting your stop loss levels before bouncing back up or right down to your original profit targets?
If you’ve got, then congratulations! You’re identical to every other trader on the market.
But what if these items keep happening to you?
For those who’ve done your homework and followed your trading plan and also you STILL lose your trades, are you able to then say that the market is against you?
Can the market really trade against you?
Keep in mind that price motion is the sum of the selections of hundreds of traders – each institutional and retail – who don’t even know you.
They could know something you don’t, or they might need to put or remove positions that don’t have anything to do with what’s happening within the charts.
These guys don’t care about your credentials, your biases, how fancy your indicators are, or that you just lost your wedding budget betting on EUR/USD flying by 300 pips (your bride will DEFINITELY care though!).
So, no, the market isn’t trolling you. In all of your trades, the market is Mariah Carey and also you’re JLo.
She don’t know you.
If it’s not the market, then it’s you.
More likely than not, you losing a trade has something to do with the way you handled it.
Possibly you’re not as prepared or as focused as you thought and also you missed a key catalyst that moved the asset against your trade.
Possibly you did not hit your stops when called for, otherwise you ignored signals that went against your trading bias.
Or perhaps the environment has simply modified and isn’t any longer favorable to your existing strategies.
In any case, the market is ALWAYS boss and it’s your job as a trader to adapt to what it’s saying.
What are you able to do?
For those who’re sticking to your trading plan and also you’re still losing trades, you may:
Lower your risk exposure
If there’s a disconnect between the market and your trading plan, then you must lower your risk exposure until you work out what’s happening.
Leverage and position sizes are the best to regulate for those who’re not ready to alter your biases or your trading system.
Re-read the markets
If the market isn’t acting the best way you think that it should, you then might have to step back and understand what it’s now saying.
Read the news, forex blogs, or analysts’ opinions to see for those who’ve missed a fundamental catalyst.
Use multiple time-frame evaluation. Check charts across different time frames in case you missed a technical support or resistance level.
Get on board with the present market sentiment before you place on any more trades.
Adjust your strategies
In case your research leads you to the identical biases, you then probably need to alter your strategies.
Are you using stops which might be too tight?
Are the indications you’re using still fit for the present trading environment?
For instance, are you using a trend-following indicator when the value motion is in a variety or in a sideways market?
Are market biases changing too quickly for the time-frame you’re using? Are your profit targets realistic given the asset’s average volatility?
At the tip of the day, we’re TRADERS and never investors.
It’s not our job to be right.
It’s our job to take regardless of the market gives us and make the most of it.
There will probably be loads of other trading opportunities coming your way.
Ensure that you’re prepared with research, focused in your mindset, and versatile in your execution so that you’ll have higher odds of winning your next trades.
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