Realisation

After a string of losses last month, I only realised that:

• My trading strategy, which I devised back in last August and allowed me to yield a huge amount of pips (1 Aug– 25 Nov), has lost its edge in current market situation.
• Since the market is in a rally mode, you get punished heavily if you back the wrong trending direction.
• There are a lot of false breakouts (traps) due to extreme price volatility and non-justifiable price action.
• Trading based on emotion, aggression and hope will cost you dearly.
• Discipline and cool mind are all you need when you are down and despair.
• A fragile soul (of mine) takes 7-8 weeks to recover from mistakes.

Now, I think I am ready to make a comeback and be better than ever.

5 Trading Pitfalls To Avoid

The definition of "pitfall":-

An unapparent source of trouble or danger/ a hidden hazard: “potential pitfalls stemming from their optimistic inflation assumptions”.

1. Aiming too high - There is no quick way to get rich. You need to be realistic in the goals you set and do not overpromise yourself. The success in trading is the ability to follow through.

2. Trying to win them all - - Keep adding to a loser position instead of getting out. The result based on impulsive trades usually becomes a lot worse before it gets better.

3. Hoping to recover from big drawdown - Get out of your losing positions quick. It is inevitable that you get caught in the wrong end of a trending market. Always a day late and many many dollars short !

4. Don't know when to stop/check - It is time to reflect when your system loses the edge. Don't send yourself into mine fields. Take some time off and regroup your strategy.

5. Being stubborn - Don't fight the wrong fight and keep kicking yourself. Remorse about your misfortune won't changed what have happened. Trading is supposedly fun, challenging and rewarding. If you don't feel this way, please stop trading.

Happy New Year

Hope you all have a phosperous and successful trading year !

Happy New Year !