Don’t Let Your Emotions Get In The Way Of Forex Profits
What a response…
Thanks so much for all the great emails about your most memorable trades.
The response was amazing and it’s much appreciated.
In fact, I’ve really enjoyed reading through all your experiences.
Today, I’d like to share Neil from Hong Kong’s most memorable trade…
You see, there’s a very important lesson here…
Don’t let your emotions take you off track
From Neil…
My most memorable trade involved trading forex in Australia.
For me back then, the most productive time was after the market was closed.
At that time, the racket of the 5 or 6 brokers shouting FX prices over the squawk boxes had died out.
For once, I had time to think clearly, and could set my trading plan for the next day.
I’d write down my preferred buy price, stop loss and take profit levels, based on analysis of my charts.
My idea was to just give these trade orders to the broker the next morning. I’d let the market determine my trading result, without me interfering, or changing my mind.
At least, that was the plan.
But often I’d not carry out my trading plan. It would change due to my mood the next day…
Some days I was negative (stress at home or traffic jam on the way to work), which caused me to get scared and cancel my orders.
Or if I was upbeat and feeling positive, I’d feel more adventurous. I’d lose my discipline and cancel my stops, risking more than I planned under my original trading strategy.
Because I sat in an office all day watching the markets on the screens, I lost many opportunities.
If only I had the flexibility to put my orders into the market and then do other things other than watch the markets on the screens…
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If only I didn’t have to sit watching those screens
But one memorable Friday evening, I checked my chart.
It basically told me that I expected AUD/USD to fall from the current level.
Many commentators disagreed with me and my boss thought I was crazy.
But I was sure the charts were already showing signs of this happening.
Everybody had already left the office – out partying, as it was now late on a Friday night.
I quickly called my broker and put in my order to sell as much as I could the following Monday.
I rushed to the lift and left the office, knowing full well I would be on holiday for the next TWO WEEKS.
I drove to the Outback, there was no news, no boss, no commentators, no market updates…
Of course, I was tempted to call the office to find out what was happening, but I just told myself: ‘My analysis was sound, this will all work out.’
Then two weeks later, as I sat down for Sunday roast dinner at my parents’ home before heading back, I spotted the Saturday paper on the chair.
I knew it would have the closing forex prices from the Friday before.
I nervously peeped at the prices. I would learn whether I was to face the music from my boss (lecturing or worse) the next day.
To my utter amazement AUD/USD had fallen more than 300 points during the time I was on holiday, just as I predicted.
Monday, I sped to the office and closed my position knowing that my job was secure for the whole next year.
I felt great.
This was enough profit to meet my yearly profit target set by my boss just a few weeks before. And it was only January!
No wonder I’ve not forgotten this trade.
But I did learn that to profit I needed to trust my own analysis.
Also, to have a clear trading strategy, simply execute it, and not be influenced by my own emotions.
I now know the best way for me to do this is to not watch the price screens all day, but to wait for the markets to play out.
And I often need to simply get out of the way to profit.
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Many thanks go to Neil for sharing that.
I actually think it’s an excellent confirmation of a fact that we’ve talked a lot about in Forex Round-up.
And I definitely agree with Neil…
Successful forex trading is all about following a disciplined plan and not letting your emotions take you off track.
If you’re able to do that, I’m confident that you’ll not just enjoy a more profitable trading experience – your trading will be much less stressful, too.
OK. That’s all for today, but over the next few weeks I’ll certainly be featuring some more of your memorable trades.
So, be sure to keep an eye out.
And of course, if you haven’t had a chance to email me yet, feel free to drop me a line.
Don’t worry; your story doesn’t need be as long as Neil’s – just whatever you want to share.
