Many traders are losing money because of the way trading is not in tune with the market. At least that's the conclusion of a Nial Fuller forex trading mentor. Appropriate means harmony or harmonious relationship occurs. There are many reasons a trader suffers losses, and to indicate the exact reason why you are losing money or not making a profit in any way you are targeting, here are some things you need to understand about the market. With this understanding you are expected to align with the characteristics of your own trading market.
Understanding the market price movements random
As a trader we must understand the fact that we will never get the results must be a hundred percent on every trade we do. Whatever we market trading strategies are randomly distributed, so that the trading results that will be obtained are also distributed randomly. This means we will not know the exact outcome that trade has or what we'll do.
This is a problem that is often experienced traders. Often times they feel will be able to profit or loss on a position would they have done, therefore they dare not use a stop loss, move the stop loss level, or enlarge the size of the trading lot (position size).
For example if we have a system of Trading profit percentages (a win rate) of 50%, we do not know where the trade will profit and which will loss. Only after 100 times the trade possibility is 50 times and 50 times the profit loss. Traders who have experienced this will know every time a trade. They are not fixated on the outcome of each trade is made, but remain disciplined and patient in implementing methods and trading strategies.
Not 'against' the market
The main reason that causes the trader failed to make a profit is because they are 'against' trading results that will be obtained in accordance with the characteristics of the market. They try to control the market by setting parameters that are sometimes quite complex to deviate from the trading system that has been tested. However it does not guarantee that it will do the trade results.
Keep in mind as well as any Trading system we use, we still do not know what the market will do. So should we trade with this reality. The market is not really real and definite, and should not be resisted or avoided. Trading in accordance with the test system we have before, with profit expectations (expectancy) that we already know.
Not afraid to enter the market
Traders often afraid to open Trading positions to avoid the possibility of loss. If we already know that the market is not really real and definite, then we should not be afraid to go as long as we apply the risk management according to plan and open a position only if the signals have emerged from our trading system.
You have read Bout Consistent Trading With Market Part 1 and its will be to be continue on part 2
