What is overconfidence in Forex? Forex Factory

To those who just started

Hey, I hope you're doing well. Forex market gives you all sorts of emotion at the start. You'll learn to not feel anything in your journey.
The reason I wrote the post is to give some tips, see I started not too long ago and found out some tips that would have saved me from blowing my account.
1) Don't bet against the market, you aren't pro yet like in the Big Short. Trade the trends.
2) Price actions matters most, technical analysis and fundamental analysis are good tools but what's telling you what is the charts.
3) Use ATR (average true range) to determine how many lots you want to allocate. Also don't forget to calculate the price per pip.
4) Don't trade on public holidays. Most heavy movers are not there so the market tend to have very high spreads. This will eat you up unless you know what you're doing and your stop loss is very strong.
5) When you have bad trade days, quit trading. Don't chase it. I know this feeling man, it sucks. But you have to accept the error and learn from it. Trade when everything is in your favor.
6) Don't get overconfident just because you're ahead! Protect your wins at all costs. Sometimes it's better not to trade. You do not have to trade daily, while the idea of making money everyday sounds cool realistically some days you will be sitting in front of screen planning your next trade.
7) This one is something you might already know, don't ever sell low and buy high. It works sometime but you are giving yourself a huge risk. And your stop loss will likely hit, basically wasting good money.
8) Take your wins, don't get too greedy. Currencies are correalated with one another, check the health of the trend if it starts slowing down you might want to take your profits.
9)Don't put too much pressure on yourself, you will get there. You will learn and be successful how you want. Don't rush, don't over trade.
That's all that I can think of. Personally, I have blown 2 live accounts with thousands in it. Right now I am seeing profits consistently, but it wasn't easy. It's hard to win back your losses, so cut them off when you can. And don't hold on to them! Never put your hard earned money hoping for someone else to move the trend. Ride the trend, respect it and enjoy your winnings.
I hope this helps you out, from the bottom of my heart. To my senior traders, please feel free to give me further advice. I am always looking to learn and improve.
Good luck and stay safe!
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Forex Trading With A Guarantee Of Success

Forex Trading With A Guarantee Of Success
Becoming a Forex trader is very simple, but making it work into a successful future is equally complicated (but not impossible). You must have seen many people who dabbled into the Forex trading but could not last for more than a year, or in some cases even a couple of months. Because of not being able to make it to the position of a successful forex trader, they get negative about Forex trade. They usually suggest people to not have big expectations from this career or to not even give it a try.

Hafizzat Rusli Trading Masterclass
With all due respect, these people had a bad experience, but a different person can experience things differently. Rather if the people who failed as a Forex trader could also have had a different experience if they had visioned the growth, considered steps involved to be successful, and implemented them at the right moment. The guaranteed way of becoming successful in Forex trading is to have a vision. In this post, we shall talk about the methodology that a trader should adopt to have sure success in the career of Forex trade.
Have A Vision
A Trader should vision himself few years ahead from now. This should not be measured only in terms of money he or she has earned. The trader should set targets on improving their knowledge, experience, and strategies too. Focusing on things like these assure that the graph of your growth is always moving upwards.
A trader should not get discouraged by a loss and neither get overconfident by a streak of profits. If there is a loss, the trader should be determined to understand the flaws and take the necessary steps to work on it. If the trader is having profits, then it should be seen how big the profits are, and if everything looks good, then too the trader should not get overconfident.
Implementation Of The Right Things
No trader can be perfect, no matter how much experience they have gained. The biggest reason for this is that the forex market itself is so volatile and unpredictable. Even if the trader has been able to work some strategies for a certain duration, it can never work forever. Thus it is important to never leave the focus and keep taking steps to make the strategy more strong and counter-effective.
With time and growth in this career, you will have to make full utilization of the lessons. The best way to do it is by keeping a record of your ups and downs and take steps to make things better.
Taking Guidance From A Renowned Mentor
It is possible to learn things by yourself but it takes time and a lot of effort. There are also many moments when you do not get the results and you feel frustrated. Though if you are being guided by a mentor then things will get very easy for you. This is not just for forex trading but applies to all the professions. In other professions having a degree is mandatory and that is why people seek guidance from mentors. There is no requirement of a degree in forex trade but still having help from a mentor can make a lot of difference.
Another important thing is that a mentor should be genuine and not an imposter. If you do not choose the right mentor, you will not be able to learn anything and just waste your time and money both. Even a famous successful forex trader like Hafizzat Rusli has been victimized by a fake forex mentor.
To find the right mentor you should know 2 things. The 1st is how this mentor is doing as a forex trader and 2nd is to know the results of the students of this mentor. If both are satisfactory, then you know that you have found the right mentor.
Follow these 3 steps and you will see that becoming a successful forex trader is tough but not impossible. If you are inspired by this post and willing to start a forex trading course, click the link here https://www.hafizzatrusli.com
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Fear of Missing Out and Trading

Fear of Missing Out
The fear of missing out on potentially profitable trades is paradoxically the cause of much trading failure. FOMO causes recklessness in trading to feed a need for relief of the angst brought about by the fear.
Unless your focus is placed on preserving capital and risk management, the inevitable result is consistent losses. We all know the key to trading is choosing high probability trades and proper risk management, then why don't we do this?
Fear of Missing Out and Trading Forex
Have you ever experienced a losing streak only to result in you taking a step back to rethink your strategy? On many occasions, this renewal of a cautious mindset may have led to a new string of successive profitable periods only to be followed by another series of losses. The cause of this cyclical pattern, in some cases, is a shifting of focus from one of risk management to profit.
If you focus on managing your trades in such a way that you chose only the best setups and risk just a small amount on each trade, then this will lead to a successful period. A profitable period leads to overconfidence and laxity in risk management. Once this occurs, the focus may shift to making more which leads to the fear of missing out on any apparent profit potential. Fear of missing out and trading poorly go hand in hand.
High Probability Trades
If your focus is on the profit, you will end up taking lower probability trades. You can't focus on two things at once: both profits and high probability trade setups. The paradox is that the more you focus on profits, the more sloppy you'll become in your trading technique and the less profit you'll make. The problem with high probability trades is that they're not that common. Patience and discipline are required. Many traders don't either understand the need or method of attaining discipline and patience.
Some traders insist on a trading plan but neglect the need for internal practice/ visualization or confidence in the system. Visualization will be addressed later in more depth, but patience and discipline will come more naturally if you have faith in the system. The strong confidence in the system can be a result of backtesting and combining fundamentals with technicals. Fundamentals are helpful because they are the real reasons price moves in a particular direction in the first place.
High probability trades should be a result of a confluence of information. Fear of missing out and trading without a confluence of reasons to take the trade feed off each other. In other words, if you fear to miss a possible trading opportunity you may be less likely to be critical of the trade and therefore pay less attention to the necessary confluence of reasons to take it.
If you pay less attention to the confluences, you'll end up taking poorer trade setups which will lead to more losses. More losses lead to the need to make up for losses or revenge trading. This focus on revenge trading only leads to taking riskier trades, and the cycle continues.
Risk Management
No system is perfect; there will always be drawdowns. Avoiding fear of missing out and trading higher probability trades is only half the recipe. You must keep your risk relatively small in order to skew the possibility of equity growth in your favor. It is the lesser risk that helps retain your working capital, so you can take advantage of the bull runs when they occur.
If you don't keep your risks small then not only will you have insufficient capital left to take advantage of a winning streak, you won't have the mental willpower either. Drawdowns can have a severe effect on your motivation and mental stamina. Only realistic expectations of account gains will result in a tempered risk approach.
All of this information on risk management is good, but most traders still have difficulty implementing what they know they should do. This difficulty is where visualization fits in. It helps build up the discipline necessary through mental exercise, without having to risk real money.​Visualization
Refer back to an earlier article on visualization here. You must think of yourself as a risk manager and not a profiteer. The profits will come as long as you've done your job as an excellent risk manager. Again, risk management includes choosing the best possible trades, knowing precisely what those type of trade set ups are in advance (part of a trading plan), knowing what to risk and reward should be before you place a trade (part of a trading plan), not taking bad or even mediocre trade setups, looking for a confluence of factors that results in a high probability trade, reading the news so to understand the fundamentals behind a currency movement.
All of this and more can be practiced through visualization. Visualization should be an opportunity for rehearsal and focussing on what you need as a trader: risk management skills. You may find your mind wanders away from this focus, but visualization will help you to continue to refocus, This practice of redirecting will carry over into your real trading.
The discipline you need as a trader will, as a result, be directly related to the amount of mental practice that you do. Visualization will also help in addressing what possible obstacles you may have to endure. One common obstacle is drawdowns. You can see yourself as continuing to practice good money management skills even during a drawdown. This practice will help you avoid even worse losses.​
Certainty and Trading
The sense of certainty in trading comes from knowing your system inside out. This sense only comes with real practice in real time and through imagery. Paradoxically, the more you take your attention away from making a profit and place it on risk management, the more likely you'll be in profit.
The more detailed you make your imagery, the more confident you will feel that you are a good risk manager. This certainty should transfer over to reality in the form of greater profits.
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Forex Trading: Risk/Reward User Case Study: Week Three Of Using Forex Source User Case Study: Week Two Of Using Forex Source Overtrading - Why is overtrading a bad thing? Marijuana Stocks: How Trading Overconfidence Kills (with PROOF!) Why Are Forex Traders Blowing Up Trading Accounts ? How to Build Confidence in Forex Trading

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Forex Trading: Risk/Reward

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