Trading Forex means learning to take a loss

Friday I had a huge loss. It was quite disappointing especially after making a few good profits. This is part of the process and the faster you learn to accept that certain losses will be part of your forex trading career, the better.

How I ended up with my own mechanical system

Those who have read my posts so far will know that I am telling about my journey in mastering the art of trading the forex market. I believe that I still have a long way to go, but I hope that anybody who reads my posts, and who are also interested in trading the forex market, will find some use in my ramblings.

Trading is quite emotional, making money is an extremely elating experience, but man, losing money is one of the most depressing experiences. Especially when you see all your recent profits (or worse all your money) slowly going down the drain with each losing trade. For this reason I have found that discretionary trading systems do not work for me. Maybe I am too emotional to be effective in trading discretionary systems.

The one system that helped me out of the rut of losing was the course of Avi Frister.The Forex Trading Maching (Price Driven Forex Trading . It is quite an interesting mechanical system for trading the Forex Market. I traded this system for some time, and then I start seeing some potential of developing my own system out of this. It took a great deal of trial and error, but I do feel that I have developed my own robust system for trading.

I think that one of the most important lessons I learned was that there is no holy grail for trading. Every trader has his or her own personal preferences, risk profile and equity. A system like the Cash cow from the The Forex Trading Maching (Price Driven Forex Trading , are very effective ways of developing your own mechanical system.

But what is a mechanical system? It is a system that determine when, where and how to enter and exit the market. In my own personal profile it works much better for me than a discretionary system. Maybe it will work for you too. Each person is different and it can be very rewarding to determine which you are. Until next time.

My Journey To Improve My Forex Trading

If you read the heading of this blog, you already know that I went fell from an extreme high to a huge low in a very short time. Making that amount of money with so little capital in such a short time is indescribable. I felt untouchable... every time I entered a trade I made a profit. I went wild... making reckless trades. But my blind luck held and soon I was on top of the world. Looking back I saw that I was simply blind luck. I traded in a bull phase of the market. I simply could not go wrong. But my luck changed and without a good plan for trading Forex I simply lost almost all of my money. I knew nothing about money management etc. so I lost almost all my capital in just 4 trades... In this blog you will learn about my journey, and also see how I finally created a trading plan with which I am comfortable, and slowly I am making money again.

Part of my journey was learning that I need a plan to trade effectively. Luckily I stumbled upon the following books that helped me a lot. The first was Surefire Forex Trading by Mark McRae , the second was The Way To Trade by John Piper
and lastly I was really helped by The Forex Trading Maching (Price Driven Forex Trading by Avi Frister. The Forex Trading Maching (Price Driven Forex Trading was probably the one that helped me the most to start making some money. It has an excellent mechanical systems called the Cash Cow If you really want to kickstart your trading, take a look at these books... it is really worth it.

The most important lesson I learned was probably to learn to trust myself while developing my own trading rhythm. I learned a good lot from the books I read and I used the knowledge I gained from these experienced Forex traders to develop my own trading methodology. Have I made it? I have had some great trades so I think that I am getting there. I will post the last few weeks trades... but this is a work in progress, but for the first time in more than a year I am enjoying my trading... hope my journey can help you...