This is what they don’t tell you as traders. The greatest achievement of a trader’s journey is not his or her works of art on a chart or the amazing overpriced robot software or computer technology, but the recognition of his/her own dysfunction, his own trading madness.
Tao Te Ching to recognize one’s own insanity is ofcourse the Arising of sanity.
The beginning of healing and transcendence to wealth as a trader is to recognise patience.
A successful objective for a forex trader is to exit his or her madness and then learn to let the market tell him or her what it may do next (1 of our 4 “P’s” Patience) and how much is enough. This is key when trading the forex market.
This can be extremely difficult when you consider there is absolutely no relationship between what the forex market may do next and your personal belief system on what it means to lose, or what it means to be wrong. This very often can lead to what we call revenge trading.
What is ‘Revenge trading’ you may ask? Well it is when you get into an emotional spiral (out of control market madness).
“You’ve suffered some losses and you are understandably upset about it, i get it”.
So now you want your money back from Mr, Market, the one who took your hard earned money away from you. now in one trade you want it back, even when you are in profit you still tell yourself I need to make it all back. You then end up forgetting yourself and now you are now trapped in the biggest casino in the world drifting down the rabbit hole like Alice in wonderland.
A typical revenge trade is where you double or triple the size of the previous losing trade instead of sucking it up and telling yourself it is the nature of the game. Revenge trading is the fastest route to ending up Broke with a margin call ping on your phone from your broker.
Patience is so essential at this point and it will take all your strength as a person and as a professional trader to refrain from spiralling into a world of hurt and pain.
In conclusion, it’s always slower climbing back up out of the grave you dig than it is to fall down into it, but the long term rewards are much better. The Whirlwind Storm within the market can cause any trader to become overly aggressive in your position sizes after one of two losing trades, mixing trading skills with emotions and trading emotionally without a plan of action while constantly telling the market what to do.
by Kasim ijelu