MISTAKE USUALLY DONE BY A NEW TRADER

 After several years of trying to find a holy grail of trading technic in the market, and finally, I've found one. The thing I've found is not a holy grail technic, but I found my mistake I've done during trading all the year.

My first sight in trading that I believe for a very long time is in trading must have up and down and I usually stick to one method when it performs well with me and when it starts not to perform well with me, I start seeking for new technic that I will call the holy grail later one.

After a few years of seeking a thing that doesn't exist, I just realise something that I never believe before. I realised that the technic has nothing wrong with what I'm doing. The thing that has done wrong is me.

The best example I can relate is about school. The success of one student is not 100% toward the school management or whatsoever.  The most important is how the student can adapt to the school system. The preliminary school has a different system compared to secondary school and so on till college or university. The question is why? Why don't we just stay in the same school with the same system all the time?

Now let me bring this philosophy into trading that a lot of new traders out there missed understanding including me once upon a time ago.

I've got a few technics that I would like to call a system. When I apply a system that I call system A, I should understand at what level the system can perform, just like when comparing a preliminary and secondary school system. System A will perform well in preliminary school, but in secondary school, the system has a high chance of failing, which means I need to use the next system that could perform well with secondary school.

Make as simple, we need to understand the nature of the market where there have an uptrend, downtrend and sideways. This means as Investor, we need to understand when is the market is trending or sideways. The earlier we can get in the market, the better chance of us will make a profit from it.

How do ensure the market is starting to trend or sideways, the answer is we as a retail investor would never know but there a something that I apply in my trading system to overcome this headache.

After several years I try to understand the rule made by the famous investor icon Warren Buffett. Rule#1 never lost money in investment. Rule#2 never forget rule no #1. What I understand with his rule, never invest in something that you doesn't understand. Don't gamble with the thing you don't know. Yes, you can learn it from somebody but it's doesn't mean you will understand it straight away. 

The key is to understand your system and invest in the system.

The second thing that almost most of the investor missing is correct position sizing. You need to define a proper position sizing to calculated your investment risk. Most investors failed to do this, resulting in lost emotional control, which created a FEAR & GREED situation in the market.

In investing, is not about you are right or wrong, the important is about making money from it. Make money from it and everything is good, but lose the money and you are wrong. Therefore, don't lose your money first by your incorrect position sizing.

I hope you enjoy my sharing today on this blog post. I would like to hear your opinion regarding my share today in the comment section below. When you are ready, grab all the Forex tools that I could find for you here: https://www.forexstrategiesresources.com

Let's keep on trading each other more profitable and successful than before. Thank you for reading my share.

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