Forex trading is one of the great money making opportunities available these days. People from many walks of life, men and women, decide to join the trading world everyday looking for the great style of life a profitable trader can achieve.
But Forex trading is also a war where you can lose your money and confidence if you are not wise enough in your battles against the market, a wise, often formidable and even brutal enemy.
There is an old saying by the Chinese military genius, Sun Tzu that says, “the obsession for victory is a state of mind that benefits the enemy”. And these wise words apply without any doubt to the world of trading. In the war with the markets nothing is more damaging to a trader than “the obsession with victory”.
There are many new traders that think they must never close a trade until it will turn into a profitable one; or think their predictions based on a particular indicator and technical analysis will always be right and the market will start behaving in the way they had predicted in any moment, no matter if the charts clearly indicate that it’s not doing it and the margin of the account is getting depleted.
This is, in no way, a wise trading strategy; it is not a wise war strategy. With that behavior you will only be giving free money to the markets, i.e., you will be defeated by your own obsession with being profitable even if everything is going against you indicating you must close the trade or tighten your stops.