Today was a bad day for Haley as it took four consecutive losing trades. Each of the four GBPUSD buy trades got stopped out at -100, -80, -80, and -60 pips. Most of the manual traders would get psych-out or froze up after 320 pips loss. This is the reason why most forex traders will fail due to fear. There are many fears: fear of losing, fear of making mistakes, fear of being fear and, etc.
Losing is part of the business in forex trading. Most traders think that they can tolerate losses; however, most traders will abandon their trading systems after a string of losses. Losses are the risks and without them, we can’t harvest the rewards. Traders should embrace losses as they keep us grounded. Without losses, we would never be able to determine the traders from the amateurs or the good trading systems from the mediocre ones. The future of trading and investment will move toward automation as it will remove the greed, fear, and the lack of discipline from the average investors. Currently, people are fearful of black box trading, and it will take time to adopt. The number one mistake that traders make is switching from systems to systems. The correct method is to select one trading system and to commit to it for four months.
Sorry, I digressed. After the four losses, Haley has entered the market with four additional trades: two buy and two sell trades. Surprising, all four trades are profitable and are floating at 174 pips profit. See attached chart.
