“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.
Editors’ Picks
EUR/USD climbs above 1.1300 on renewed USD weakness
EUR/USD gains traction in the European session on Friday and trades above 1.1300. Growing concerns about the US fiscal outlook and government debt after the US House of Representatives passed President Trump's tax bill weigh on the US Dollar and help the pair push higher.
GBP/USD rises to 1.3450 area, closes in on multi-year high
GBP/USD benefits from the selling pressure surrounding the US Dollar and rises to the 1.3450 area in the European session on Friday. The data from the UK showed that Retail Sales rose by 1.2% in April, surpassing the market expectation of 0.2% and supporting Pound Sterling.
Japanese Yen retains bullish bias against a broadly weaker USD amid hawkish BoJ expectations
The Japanese Yen remains on the front foot against a broadly weaker US Dollar in the wake of the growing market acceptance that the Bank of Japan (BoJ) will continue raising interest rates. The bets were reaffirmed by hotter-than-expected consumer inflation figures from Japan released earlier this Friday.
Editors’ Picks
EUR/USD climbs above 1.1300 on renewed USD weakness
EUR/USD gains traction in the European session on Friday and trades above 1.1300. Growing concerns about the US fiscal outlook and government debt after the US House of Representatives passed President Trump's tax bill weigh on the US Dollar and help the pair push higher.
GBP/USD rises to 1.3450 area, closes in on multi-year high
GBP/USD benefits from the selling pressure surrounding the US Dollar and rises to the 1.3450 area in the European session on Friday. The data from the UK showed that Retail Sales rose by 1.2% in April, surpassing the market expectation of 0.2% and supporting Pound Sterling.
Gold bulls have the upper hand amid safe-haven buying, weaker USD
Gold price attracts some dip-buyers following the previous day's pullback from a two-week high and trades above the $3,300 round figure during the Asian session on Friday. Moreover, the fundamental backdrop suggests that the path of least resistance for the precious metal remains to the upside and supports prospects for an extension of over a one-week-old uptrend.
Avalanche Price Forecast: AVAX eyes $30 as FIFA, VanEck back blockchain ecosystem
Avalanche (AVAX) is gaining bullish momentum, extending gains on Friday, trading at $25.74 as investor confidence grows on the back of two major developments. FIFA, football’s global governing body, has announced plans to build its own Layer-1 blockchain on the Avalanche network.
FOMO vs fundamentals: Retail buys the dip, institutional investors stay cautious
Retail optimism is rising, but institutions are still treading carefully amid lingering macro and earnings risks. Policy and fiscal uncertainty remain elevated, with trade tensions, U.S. debt concerns, and a cautious Fed dominating the backdrop.
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