I’m sure many experienced traders remember how they crashed their first real account even if they spent years on demos and learning about the FX Market. The truth is that when the majority of us enter the market with real capital for the first time we open “Pandora’s Box” releasing greed, the urge to earn big and quick, forgetting what we learned in the past. Only 5% of traders actually manage to stick these “diseases” back in the Box and never open it again. The other 95% tend to leave something out or, worse, they open it from time to time to check if everything is in “order”. In fact Pandora means “all-giving” and this is the best trait to characterize any Financial Market. It will give you what you need and want if you court it the right way. Many of you may laugh because I used the term “court” but this is the truth, The FX Market is actually a lady in every sense of the word, a lady that mesmerizes and attracts us, she’s calling us and we always go to her but if we don’t treat her the right way she will never come to us.
Over trading. Wouldn’t it be great to wake up one morning in a1 0 million mansion 10 exotic cars, a maid and secretary? or a 25 million checking account? It’s every man’s or woman’s dream but unfortunately it will remain a dream for 99.9% of all living humans on this earth. FX Over trading is the result of this dream and it affects us dearly because it will ensure that we will never come close to it. In fact Greed is the main reason why we over trade, we want money and we want it fast but in this way we will only lose what little we have. I got a question for you and you have to answer it for yourself: Why try to make a million dollars in one day from a $1000 account, when you can make a million dollars in 4-5 years? Stop FX over trading, make your own FX strategy or adopt one and back test it manually, see how many signals you get in a month/year and divide it by two, for example my strategy only gives on average 10 signals every 2 months but I only trade 5 of them. This is the best cure to over trading and most importantly to greed; if you enforce it upon yourself to freely not enter a wining trade then you are cured.
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