Why Mistakes Can Sometimes Be Good For You

I’ve had some more incredible e-mails with your most memorable trades.

One thing that jumps out from you experiences is ‘mistakes can sometimes be good for you’.

This is definitely a good mindset to have when learning how to trade forex.

Mario writes…

“Both my most memorable ‘trades’ happened within a week of each other, and both from Tom Tragett’s Forex Trade Alert Service.

I’m a novice and have only been learning since August at home, never a pro!

On 20th October, I sold 2 lots GBP/CAD, and I made an amazing £2,200 profit!

Incredible elation as I had made at most a few hundred on previous trades.

I let this one run with my eye on it and I closed it out early too, it could have run and run, if I had followed Tom’s instructions.

I thought I was ready to quit my job

“What I learned: the power of leverage! I had started to trust the signals and I got a bit cocky, so I went for 2 lots.

I thought I was ready to quit my job.

It was like finding some sort of secret money printing scheme! I was walking on air.

Then on 28th October, I bought 1 lot of EUR/GBP, and lost £1,800.

Tom had sent out a signal on the Monday, it was triggered and then dived.

I foolishly pulled the stop loss down as I didn’t want to be stopped out of the trade. I thought the few hundred that it had dropped was ‘too big to fail’.

I figured that the price would turn round and I just needed to grit my teeth.

Instead, it kept dropping and I thought I was going to lose all of my big gain from the previous week. So I cut my losses eventually.

But, if I had listened to Tom I would have only lost a few hundred quid.

I learned a bit more about leverage that day alright, plus a nice introduction to proper risk management.

Nowadays I always try and calculate my real risk on a trade – what I stand to lose, and then make sure it’s only 2% of my trading account.

Forex is not a game, that’s for sure

“I know Tom suggests a price but I like to double check.

I remember closing the trade whilst walking through Ikea car park in the rain on my phone. I was so ashamed.

But I still remember the sheer joy of the first trade, and the severe confidence blow of the second one.”

Forex is not a game, that’s for sure.

Thanks to Mario for sharing this with us.

I’m so pleased he still made a £400 profit though, even with the mistake!

But the fact is: mistakes like this can be good for you.

You learn to take risk management more seriously and closely follow and stick to the systems you are using.

This is so important to learn when starting out.

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OK. That’s all for today. I’ll see you again next week.

But finally, before I pop off…

Mario explained that it was through Tom Tragett’s that he learnt his first real lesson in forex.

If you haven’t had opportunity before to check out Tom’s Forex Trade Alert service, you can read more about it right here. 

IMPORTANT

Spread betting is not suitable for everyone – ensure you fully understand the risks involved and never risk more than you can afford to lose. Trades recommended in Forex Trade Alert carry a high level of risk to your capital. Prices can move rapidly against you and resulting losses may be more than your original stake or deposit.

Past performance is not a reliable indicator of future results.

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