“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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Editors’ Picks

EUR/USD: Price balancing on a tightrope over the abyss ahead of NFP

EUR/USD: Price balancing on a tightrope over the abyss ahead of NFP

EUR/USD was sold off on Thursday as investors get set for the outcome of Friday's key US event in Nonfarm Payrolls. US yields and the US dollar both rallied as investors dial back the sentiment surrounding a picot from the Federal Reserve.

EUR/USD News

GBP/USD declines towards 1.1100 on hawkish Fed bets, US NFP in focus

GBP/USD declines towards 1.1100 on hawkish Fed bets, US NFP in focus

The GBP/USD pair has delivered a downside break of the consolidation formed in a narrow range of 1.1145-1.1173 in the Tokyo session. The cable is hovering around Thursday’s low at 1.1112 and is expected to decline toward the round-level cushion of 111.00.

GBP/USD News

USD/JPY sees an establishment above 145.00 amid escalating Japan-North Korea tensions

USD/JPY sees an establishment above 145.00 amid escalating Japan-North Korea tensions

The USD/JPY pair is oscillating above the critical hurdle of 145.00 and is expected to sustain above the same by shifting its auction profile higher. The asset is expected to remain in the grip of bulls as the market sentiment is advocating a risk-aversion theme amid geopolitical tensions. 

USD/JPY News

Editors’ Picks

AUD/USD gathers momentum for a breakdown below 0.6400

AUD/USD gathers momentum for a breakdown below 0.6400

The AUD/USD pair is displaying back-and-forth moves in a narrow range of 0.6400-0.6422 in the Tokyo session. The asset has turned sideways after a perpendicular fall from 0.6540 as the market sentiment turned extremely sour on geopolitical tensions.

AUD/USD News

EUR/USD: Price balancing on a tightrope over the abyss ahead of NFP

EUR/USD: Price balancing on a tightrope over the abyss ahead of NFP

EUR/USD was sold off on Thursday as investors get set for the outcome of Friday's key US event in Nonfarm Payrolls. US yields and the US dollar both rallied as investors dial back the sentiment surrounding a picot from the Federal Reserve.

EUR/USD News

Gold oscillates at a make or break around $1,710.00, US NFP eyed

Gold oscillates at a make or break around $1,710.00, US NFP eyed

Gold price has slipped modestly after facing barricades of around $1,715.00 in the Tokyo session. The precious metal is expected to slip further to near $1,700.00 as yields are hovering at elevated levels amid hawkish commentaries from Fed.

Gold News

BNB drops by 4% as Binance confirms potential $586 million exploit on BNB Chain

BNB drops by 4% as Binance confirms potential $586 million exploit on BNB Chain

The world’s largest cryptocurrency exchange is observing an attack on its token chain and cryptocurrency. In response, Binance Coin’s price began falling on the charts making the investors highly concerned. Binance Coin has dropped by almost 4% since the opening hours.

Read more

Nonfarm Payrolls Preview: Five scenarios for trading King Dollar as markets plead for pain Premium

Nonfarm Payrolls Preview: Five scenarios for trading King Dollar as markets plead for pain

No pain, no gain – this gym idiom resonates with stock bulls. The Federal Reserve has said it is willing to accept – and even wants to see – economic pain to see inflation falling. Last month was painful in financial markets, but did American employment also feel the pinch?

Read more

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What Are the 10 Fatal Mistakes Traders Make

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