Open trading account 
Probably the most important thing about trading has nothing to do with fundamentals or technical analysis but about how you feel about a trade. I'm one of those proud arrogant people who has to be right all the time. It's not the kind of attribute a trader needs. A trader has to know when he's wrong and have the good grace to get out of a bad trade. It's like learning to apologise. Humility is both a cardinal virtue and a route to profitability. Why is this? Is Christian virtue largely to do with self-interest - admit our sins now and be rewarded in heaven and earth?
As I write, I'm risking my whole account on a second Rouble trade. Earlier today, I'd just had a ridiculously immense amount of good luck. The only thing bad about it was that it was not real money. I happened to double my account by a fluke Rouble trade. It gapped up hugely in my favour so that the profit I took was twice what it should have been. It took me to 14th position in this competition. What's going on?
Well. in situations like that when you're ahead and far too pleased with yourself this is what you should do. You should walk away, sit on your hands, do something else, get a life - stop trading. Didn't I write that you should take profits early? But I didn't listen to my own advice. Trouble is, full of pride at getting ahead in the competition, I went on to enter another trade in the same pair. I waited for the gap to close after the USDRUB had stopped trading overnight. This reasonably patient. at least I didn't buy again at the top. But when I got in again lower down the trade went against me. I was immediately $5,000 in the red. Quite a lot but I was trading the maximum amount possible in this competition (5m).Could I have got out early I wonder. No, again I was too proud and stubborn. I'd set a wide stop loss but I'd not calculated how much I could lose if it was hit. It was as good as trading without one. The risk was huge. But on realising what I could lose I didn't do the sensible thing and close early. Why not? The trend was up, I reasoned with myself. I also told myself that the Russian currency was now less prone to intervention and more likely to devalue. NFP was coming up and the US was likely to produce a good number. But then after a few minutes I was $82,000 in the red. Most of my previous profit (on my one lucky trade) was getting wiped out. Fortune was with me though and it came back in my favour and I made a $30,000 profit in the end. That's $600 profit on a standard lot I told myself, getting smug. But I know it was a BAD trade, This is the kind of trading which if you do often enough, you get wiped out. Tomorrow I might have zero in my Dukascopy demo account. I've just walked through a minefield and not got blown up. Again, it's luck. There's no edge to this kind of trading, just craziness. That's why it's not the market I should fear but my own reaction to it. So the same axiom applies: take profits early. To this I might add: and if you win, go and do something else for a while before your next trade. I write this not for you to follow, but for myself. I'd better start listening to my own advice.
As I write, I'm risking my whole account on a second Rouble trade. Earlier today, I'd just had a ridiculously immense amount of good luck. The only thing bad about it was that it was not real money. I happened to double my account by a fluke Rouble trade. It gapped up hugely in my favour so that the profit I took was twice what it should have been. It took me to 14th position in this competition. What's going on?
Well. in situations like that when you're ahead and far too pleased with yourself this is what you should do. You should walk away, sit on your hands, do something else, get a life - stop trading. Didn't I write that you should take profits early? But I didn't listen to my own advice. Trouble is, full of pride at getting ahead in the competition, I went on to enter another trade in the same pair. I waited for the gap to close after the USDRUB had stopped trading overnight. This reasonably patient. at least I didn't buy again at the top. But when I got in again lower down the trade went against me. I was immediately $5,000 in the red. Quite a lot but I was trading the maximum amount possible in this competition (5m).Could I have got out early I wonder. No, again I was too proud and stubborn. I'd set a wide stop loss but I'd not calculated how much I could lose if it was hit. It was as good as trading without one. The risk was huge. But on realising what I could lose I didn't do the sensible thing and close early. Why not? The trend was up, I reasoned with myself. I also told myself that the Russian currency was now less prone to intervention and more likely to devalue. NFP was coming up and the US was likely to produce a good number. But then after a few minutes I was $82,000 in the red. Most of my previous profit (on my one lucky trade) was getting wiped out. Fortune was with me though and it came back in my favour and I made a $30,000 profit in the end. That's $600 profit on a standard lot I told myself, getting smug. But I know it was a BAD trade, This is the kind of trading which if you do often enough, you get wiped out. Tomorrow I might have zero in my Dukascopy demo account. I've just walked through a minefield and not got blown up. Again, it's luck. There's no edge to this kind of trading, just craziness. That's why it's not the market I should fear but my own reaction to it. So the same axiom applies: take profits early. To this I might add: and if you win, go and do something else for a while before your next trade. I write this not for you to follow, but for myself. I'd better start listening to my own advice.