You've made a winning trade or two...
And it's a rewarding feeling.
But that feeling quickly turns to frustration when the next trades chew up all that profit. Correct?
And that's when it hits you.
Trading success is all about the trades you don't make. Agree?
The two types of losing trades
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There are high-odds trades - like a pair of aces - that you bet on every time, even though they won't win 100% of the time. Yet overall - keep making these trades and you'll come out well in front.
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And by contrast - there are the ultra-low-odds trades. Trades guaranteed to lose overall if you keep taking them. Right?
Tell me
The two losing trades below - are they unlucky losses not likely to happen often?
Or are they trades you always end up losing on overall?
Not sure?
You're not alone.
The person who made these trades didn't know either.
But that's the problem, isn't it?
When you don't know you're making trades guaranteed to lose overall - you'll keep making the same trades.
What happens next?
You'll repeatedly give back your profits. Correct?
Each time you do have a winning trade, you'll relish a sense of accomplishment and pride, only to be swiftly replaced by an unsettling pit in your stomach, knowing it's just a matter of time before you reluctantly surrender those hard-earned profits back to the market.
It's a recurring cycle of triumph turned torment. Right?
About those losing trades
The person who made these trades has taken on in-depth professional trader training. But trading is a 'doing' activity - like playing a musical instrument or golf.
It doesn't matter how much theory you undertake - it won't help show you what you need to adjust to improve. Or in the case of trading - what you're doing that's putting you in trades guaranteed to lose overall.
But there's a silver lining here
When you have someone who can point out why those trades will always lose money overall - then you can make the adjustment to ensure you don't make the same trade again.
That's what genuine trading mentoring is about - working with you not only to show you how to trade professionally - but crucial to your development - providing feedback on what aspects of your trading you must change to succeed. Why the change is needed and how to make that change.
The good news?
The person who made the trades above is no longer making the same error in their trading - meaning they're hanging on to more of their winning trades.
This level of professional guidance while rare, is available for people serious about making a significant turnaround in trading.
It's the difference in mentoring and training that leads to people seeing genuine positive outcomes.
As you reflect on your own trading journey, consider the profound impact personalized mentoring can have on steering you away from pitfalls and ensuring a more resilient strategy.
For example:
Imagine trading the same strategy taken from today's trading as shown below:
Overview:
Executions:
If you find yourself seeking the kind of guidance that goes beyond theory – the kind that brings real, positive change to your trading habits - explore the possibilities of an ongoing partnership, where a dedicated professional works with you to bring about positive and lasting improvements through regular assessment and feedback sessions.
Forex and derivatives trading is a highly competitive and often extremely fast-paced environment. It only rewards individuals who attain the required level of skill and expertise to compete. Past performance is not indicative of future results. There is a substantial risk of loss to unskilled and inexperienced players. The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged products you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading on margin, and seek advice from an independent
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Editors’ Picks
EUR/USD struggles for direction amid USD gains
EUR/USD is trimming part of its earlier gains, coming under some mild downside pressure near 1.1730 as the US Dollar edges higher. Markets are still digesting the Fed’s latest rate decision, while also looking ahead to more commentary from Fed officials in the sessions ahead.
GBP/USD drops to daily lows near 1.3360
Disappointing UK data weighed on the Sterling towards the end of the week, triggering a pullback in GBP/USD to fresh daily lows near 1.3360. Looking ahead, the next key event across the Channel is the BoE meeting on December 18.
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Litecoin Price Forecast: LTC struggles to extend gains, bullish bets at risk
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