5 Important Things I’ve Learnt

1. I must accept that I will lose trades.

Not every trade will be a winner. Nobody can win 100% of the time. A realistic win-rate is most likely between 50-60%, depending on your strategy. So therefore, I will expect to lose almost as many trades as I win.

2. I must accept that I will never be able to enter at the absolute lowest point, nor exit at the absolute highest point.

It is almost impossible to catch the “perfect” entry or exit. Just be happy with getting the profits that you had targetted (if you manage to get them).

3. I must accept that for almost every trade, there will be “red” moments (i.e. being in deficit) and there will be “green” moments (i.e. being in profit).

It is very rare to be able to jump into a trade where it just goes straight up all the way from start to end. There will almost always be agonizing moments where the trade just doesn’t go in your direction before hitting your desired profit target (if you manage to get there).

4. There will be periods of winning, and there will be periods of losing.

I must accept that wins may come in bunches, and losses may also come in bunches. Have to stay mentally strong when the bunches of losses come.

5. I must accept that I will inevitably always make mistakes.

No matter how many times I trade, I believe I will always still make mistakes and there will always be something new to learn every day.