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
Editors’ Picks
EUR/USD climbs to daily highs near 1.1820
EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.
GBP/USD trims losses, retests 1.3460
After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.
Japanese Yen gives back half of early gains against USD ahead of US PPI data
The Japanese Yen (JPY) surrenders half of its early gains against the US Dollar (USD) during the European trading session on Friday. The USD/JPY pair rebounds to near 155.90 as the JPY falls back, but is still 0.15% down.
Editors’ Picks
EUR/USD: Fed calm, ECB steady, but the Dollar still leads Premium
EUR/USD is still struggling to find real traction. The pair has tried to stabilise, but momentum keeps fading, leaving the door open to further weakness.
Gold: Falling US yields, geopolitics help XAU/USD hold ground Premium
Gold (XAU/USD) gained traction and climbed above $5,200, ending the fourth consecutive week in positive territory. The next round of US-Iran talks and crucial macroeconomic data releases from the US will be watched closely by market participants in the short term.
GBP/USD: Will Pound Sterling defend key 1.3450 support ahead of US jobs data? Premium
The Pound Sterling (GBP) entered a bearish consolidation phase against the US Dollar (USD), after having tested critical support near the 1.3450 level on several occasions.
Bitcoin: Another month of losses, and it’s been five
Bitcoin (BTC) price is stabilizing around $68,000 at the time of writing on Friday, but the Crypto King is poised to close February on a fragile footing, marking its fifth consecutive month of losses since October and a rare start to the year with back-to-back monthly corrections.
US Dollar: At a crossroads; Fed steady, tariffs in flux Premium
The US Dollar’s (USD) upward momentum from the previous week seems to have encountered a tough nut to crack in the 98.00 region, as measured by the US Dollar Index (DXY).
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