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Old 20-08-2009, 10:14
ForexGuy ForexGuy is offline
Level III Lasers Member
 
Join Date: Aug 2009
Location: Greater Kansas City Area
Posts: 62
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How quickly we get off topic. Let me see if I can redirect this thread back to its indented purpose.

As a young trader one of the greatís struggles I faced was overconfidence. Sometimes I laugh when I think about it because I had absolutely no business being overconfident. The same scenario seemed to play out again and again in my trading.

I would begin cautiously, carefully planning my trades and cautious about protecting my capital. I would do well, and would manage to string together a number of winning trades. I would watch my account balance grow and along with it my confidence.

What fallowed next is all too common. I would begin to neglect my planning and analysis. I would become less cautious, taking out positions that no longer fit my risk management strategy. Then I would hit a series of losing trades. Under normal conditions this would present nothing more than a normal draw down in my trading system. But because I was now overleveraged and overconfident, my account suffered greatly.

This process typically sent me into an emotional spiral. I could no longer make rational decisions inside the market. Eventually, the money was gone, the account was empty and I was back to questioning whether or not I could really do this job.

The story does have a happy ending though. By taking personal responsibility of my trading losses and poor decisions I found that emotion was the key contributor to my failure. I worked hard on my trader psychology and have been a success ever since.

Tell me your story.

ForexGuy
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