7 – Do Not Re-act when a Trade Goes Against You
Be tolerant while placed trade goes against you. Mostly traders, especially beginners, freak out or over-react at the first sign of a trade moving against them. This is much more of a problem in live trading than demo trading, due to the differences in emotion between them, but it is a problem and it needs to be addressed.
A trade moving against you is a natural thing in forex online trading. I’ve had trades move to within 5 pips of my stop loss and go on to be huge winners after that. If I had freaked out and closed them out before they hit my stop loss, I would have not only lost money, but I would have lost a lot of profit too. This is the main reason why you need to let your trades play out and not close them out early only because they have moved against you.
While you calculate your entry level, you must calculate your stop loss level (the point where you exit). Do never trade without stop/loss order. It will secure your funds and prepare you mentally for the full executions of your level calculations. Your psychology acts a keen role in successful trade.
If you have made your calculations professionally, you must obey your levels. I have examined it in last 15 years practical experience; it is very rare chance that market does not touch its levels. So your patience is most requiring attitude enjoying a successful trade.