ReUs wrote: Wed Dec 11, 2024 9:54 am
Hello friends,
I have put so much time and effort but unfortunately I have been unable to successfuly trade this beautifully designed system. Not only this system but I have failed every other method I have tried in the past 5 years. So what they say is true. Trading is not for everyone. As of today I give up trading and accept failure. With all respect and gratitude I would like to thank everyone in this community who have put so much time and effort to help others become successful traders. I have learned alot but failed to put those into practice. Goodbye and best of luck and success to you all.
I understand how frustrating and challenging trading can be it’s not easy for anyone. Taking a break to reflect is a wise step. Just remember, if you decide to return in the future, approach it with a solid plan, proper risk management, and a mindset to learn rather than gamble. Wishing you the best in whatever path you choose!
For now, the next step is to identify where things went wrong. Was it in your strategy, discipline, risk management, or psychology?
1. Strategy Mistakes
Mistake: Deviating from pre-established rules.
Example: Entering a trade without confirming all necessary signals from the strategy.
Mistake: Using a strategy that lacks clear rules or doesn't align with market conditions.
Example: Trading a trend-following strategy in a ranging market, leading to frequent stop-outs.
Mistake: Constantly switching strategies without giving them enough time to prove effective.
Example: Abandoning a working strategy after one or two losses and jumping to another without proper testing.
Mistake: Not backtesting or forward-testing the strategy thoroughly.
Example: Relying on an indicator without testing its performance across various markets and timeframes.
Mistake: Letting multiple indicators dominate decision-making.
Example: Using 10 different indicators and waiting for every single one to align before entering a trade, causing missed opportunities.
2. Discipline Mistakes
Mistake: Deviating from your trading plan due to impulsive decisions.
Example: Closing a trade early out of fear, only to see it hit the original target.
Mistake: Overtrading, driven by the need to "make up for losses" or "capitalize on opportunities."
Example: Taking trades that don’t meet your criteria because you’re chasing the market.
Mistake: Revenge trading after a loss.
Example: Entering multiple trades with larger lot sizes after a losing streak, leading to more significant losses.
Mistake: Trading during off-peak hours or low-volume sessions.
Example: Trying to scalp in a market with very low liquidity, leading to slippage and unpredictable movements.
Mistake: Taking too many trades without waiting for a clear setup.
Example: Entering trades out of boredom or fear of missing out (FOMO).
Mistake: Not setting daily goals.
Example: Not being able to define specific metrics (e.g., a target % gain, a set number of trades per day, or a % loss) leads to random trading and a lack of measurable progress by the end of the day.
3. Risk Management Mistakes
Mistake: Risking too much on a single trade.
Example: Using 20% of your account on one trade and losing most of your capital after a few bad trades.
Mistake: Ignoring stop-loss placement or moving it further away during a losing trade.
Example: Refusing to close a trade at the stop-loss because you believe the market will "turn around."
Mistake: Not calculating position size correctly.
Example: Trading 0.5 lots on a $2,000 account when the correct size should be 0.1 lot based on risk tolerance.
Mistake: Adding more positions to a losing trade in the hope of reducing the average entry price.
Example: Buying more as gold falls, thinking it will rebound, only for the price to drop further and compound your losses.
Mistake: taking trades with a poor risk-to-reward ratio.
Example: Risking 50 pips to gain 30 pips, where even a small win percentage results in net losses over time.
Mistake: Entering trades impulsively after missing the ideal entry point.
Example: Jumping into a trade late without calculating proper risk, leading to unfavorable stop-loss and profit levels.
4. Psychology Mistakes
Mistake: Letting emotions dictate trading decisions.
Example: Hesitating to take a winning trade due to fear of loss or entering a trade too early due to excitement.
Mistake: Overconfidence after a winning streak.
Example: Increasing lot sizes recklessly after three consecutive wins, leading to large losses.
Mistake: Focusing on money instead of process.
Example: Thinking about how much you "need" to earn rather than following your trading rules.
Mistake: Expecting unrealistic returns over short periods.
Example: Expecting to make 100% profit in a week instead of aiming for steady growth.
If you find yourself making any of the above mistakes, try to overcome them. I bet you can become a successful trader too!
