If you want to become a better trader, be humble. Be humble about your gains. Why? Over the years, I’ve seen too many hotshot traders among my student community that go from hero to zero due to attrition, a.k.a. burnout.
Why does this burnout happen? First we gotta look at how they first became “hotshot rookies” in trading. Usually, success happens “on a roll”. Literally, you find them saying “I’m on a roll”, in my trading group’s telegram, I’ll see their screenshots, of pages and pages of “green pips”, a.k.a. profits. Maybe during that time, they grew their account 3x, 5x, 10x, 25x… (indeed all this truly happened)… but not before long, they withdraw from the group and go into hiding, only to resurface months later.
Expectancy Is The Source of Attrition
Most successful traders I’ve seen fail, failed because they expected too much out of themselves, the market conditions, the method/methods. True just an incorrect combination of any of the above, they ultimately breakdown (and break their own money management rules) from not being able to sustain their trader’s ego trip.
True, or true?
Those who once made some great or epic success in their forex trading and then failed – typically failed because they were so caught up chasing their 5% per day, 9% per day, 20% per week goals – which while are not necessarily unrealistic, aren’t always possible due to one great variable – The Ever Changing Forex Market.
Humility As A Trader Is Being Thankful For The Market’s Charity To You
What I feel that more traders need to do is to learn to acknowledge the forex market’s role in us making profits or loss. Of course, it will help to have a repertoire of trading methods.
You will not make any money if you’re doing a swing trading or reversal method on a very bullish or bearish breakout movement.
Likewise, you will not make any money applying a breakout method if the market is only consolidating.
Trading well is about the sum of a few factors. Right conditions, right method, right mindset, right money management.
How To Trade Well With Gratitude
Understand that today is today’s market and has no bearing on yesterday’s market, or tomorrow’s market. Understand that tomorrow’s market has no bearing on today’s market or the next day’s market.
Learn to view and appreciate everyday’s market conditions as it’s own unique individual, and try to understand it, and choose the right ways to interact with it.
If today you traded well, it’s because the market was good for what you know.
Tomorrow’s market may or may not be as good with what you know. Therefore, it would be unfair to place similar expectations on tomorrow. By placing expectations on tomorrow based on today, you are either pressuring yourself into an unachievable success – or – you are limiting yourself from receiving more tomorrow than you received today. Treat everyday as “every day” – it’s own unique day, and trade it as such.Julian Wong, The Forex Lab
Lessons From My Most Successful Students
It’s true that there have been the hotshots who made a lot of money in short periods of time. However, if they went on to lose it, they are no better than those who had made less money profit, but did so steadily.
I once had a student who amazed the others at a meetup I did, when he shared that he made $3500 profit on $500 capital. For him, he started by risking $5 (1%) per trade, and even after hundreds of profit, he still stuck by $5 risk per trade. He may have gotten less profitable by percentage, but for him, he sees it as a fixed income that becomes safer and safer over time.
I had another student who still learns with me, for years, till this day. She neither did she scale her risk even with continued success. Neither does she boast. But from her screenshots, I know she’s making constant progress, and by never absenting herself from my group, I know she’s a stayer in this game. Still asks me good questions, still keeps learning and improving.
These are just some examples.
How Should We Set Our Trading Targets and Last Words…
Don’t get me wrong, I’m not asking you to keep your targets low. But low targets are more easily realisable than high targets, and you can be sure of building your confidence from one day to the next so that you become more capable of setting targets that are more realistic to your growing ability.
Confidence fuels belief and drives action.
The confidence you acquire from making steady profit, will fuel more belief that you are constantly improving as a trader, and will drive you to make more mature and decisive actions when you are trading.Julian Wong, The Forex Lab
Be thankful for your good trading days, and your bad ones. Be thankful for good market conditions, and also for bad market conditions which made you realise your inadequacies or areas for improvement. Be modest. Don’t brag or boast. If you must brag or boast, then brag about how consistent you are because bragging about your consistency will enforce your personal need to remain consistent. Remember, trading is a way of life. It’s not just a short-term passing thing. It’s a marathon, not a race.
Julian Hezekyah Wong