The Five Mental Stages of Missing a Trade

In the first stage, I lack confidence and want to wait for the second confirmation. In fact, many traders don't know what the second confirmation is. You should have confidence in your strategy and system. If you lack confidence, it means that your strategy and system have room for improvement, and have not yet passed sufficient market testing. The probability of success of the system must be very clear. Another way to solve the lack of confidence is to reduce the position. If the system sends a sell signal at point 1, you feel that you are not sure, so you can reduce the position and test the light position.

In the second stage, wanting to wait for a callback is due to idealism and perfectionism. Trading doesn't have to be perfect, and some traders are so obsessed with finding the perfect trade that they miss many trade opportunities that turn out to be profitable. If you are a perfectionist, then forex trading is not for you.

In the third stage, the reason why many traders do not enter the market is that they care too much about the market they missed. At this time, you can completely ignore what happened. You can assume that you have just opened the trading software to see the current trend, and then ask yourself, is it still suitable for trading? Don't look at how much the market has risen or fallen, just ask whether it is suitable for trading at the moment.

In the fourth stage, if you find yourself panicked and annoyed, it is best to turn off the computer and not to trade, so as to avoid the tragedy of the fifth stage.