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“I got a mentor, did my homework, understand the fundamentals, and backtesting my technicals, but why am I still losing money? Is trading just a scam?”

I cried and burst out to my girlfriend years ago when I blew up my account, again. It was not only about the financial loss, but it was frustrated because nothing seems to work and the market certainly did not reward my handworks. I felt unfair, I felt being cheated, and I felt angry, very very angry.

Fast forward, I still lose money every day (like today) and every trade, as I always love to tell beginners, “learn to love your losses because it’s part of the game.” It’s true, no matter how good your winning rate is, you will always have losses. You might have 95% of winning percentage in your backtesting, but that still means you will have 5% of losing trades and you never know when that 5% of losses will appear. Most importantly, you never knew how much trades you will have in your lifetime. 5% of 100,000 trades is still 5000 losing trades. Some people just couldn’t take it.

Yes, that is it. Some people simply cannot deal with the losses or setbacks in life. Trading is all about the execution, and the execution is all about your emotions. Sure, you need to have a good analysis, a good strategy and an approach to your trade, but when you execute the trade and start managing them, that is an emotional game.

Trading psychology is perhaps the most ignored area in all trading courses because it’s tough to teach as trading psychology is just a self-discovering journey for every trader to experience. Everyone loves to talk about the strategies, the winning rates, the forecast, and predictions, but what separates traders from success to failures is the execution. No matter how good your plan is, someone has to pull the trigger.

The sooner you spend the time to work on your trading psychology, the better off you will be in this game. And no, EA will not help you because you will let it run when it makes money, but you will turn it off when it started losing - even though you shouldn’t. However, your emotions get in of your way, and you just couldn’t trust the EA anymore. I know because I’ve been there myself.

Finally, be completely honest about your losses as you would toward you wins. Have a trading journal, and enjoy this journey of becoming a great trader. Take a look at today’s video to learn more.

Enho Kuo is NOT a Broker Dealer and engages in trader education and training. All materials given by Enho Kuo are for educational purposes only. This information neither is, nor should be construed, as an offer, or a solicitation of an offer, to buy or sell securities. You shall be fully responsible for any investment decision you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs. This material is being provided to you for educational purposes only. No information presented constitutes a recommendation by Enho Kuo or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities. You are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs.

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EUR/USD rises above 1.0900 as USD selloff picks up steam

EUR/USD rises above 1.0900 as USD selloff picks up steam

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GBP/USD extends rally toward 1.3000 on broad USD weakness

GBP/USD extends rally toward 1.3000 on broad USD weakness

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Japanese Yen retraces gains despite increased risks of further intervention

Japanese Yen retraces gains despite increased risks of further intervention

The Japanese Yen edges lower as the US Dollar improves due to higher Treasury yields. Japanese Chief Cabinet Secretary Yoshimasa Hayashi has expressed readiness to utilize all available measures concerning forex matters. Fed’s Goolsbee stated that the US economy appears to be on track to achieve 2% inflation.

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Editors’ Picks

EUR/USD rises above 1.0900 as USD selloff picks up steam

EUR/USD rises above 1.0900 as USD selloff picks up steam

EUR/USD extends its weekly rally and trades above 1.0900 in the American session on Friday. Following a modest recovery attempt seen after strong producer inflation data from the US, the USD stays under bearish pressure as risk flows dominate the markets.

EUR/USD News

GBP/USD extends rally toward 1.3000 on broad USD weakness

GBP/USD extends rally toward 1.3000 on broad USD weakness

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GBP/USD News

Gold remains on track to end week above $2,400

Gold remains on track to end week above $2,400

Following a short-lasting downward correction in the early American session, Gold regains its traction and looks to end the week above $2,400. The persistent selling pressure surrounding the US Dollar heading into the weekend helps XAU/USD hold its ground.

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Worldcoin crumbles under selling pressure even as OpenAI eyes human-level problem-solving

Worldcoin crumbles under selling pressure even as OpenAI eyes human-level problem-solving

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Week ahead – ECB set to hold rates, plethora of data on the way

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