Psychological Challenges Faced by Traders

There is no best teacher except your own experience and experience.

The sentence above does NOT mean we don't need to learn from others. Not like that !

We still need to read more books, attend seminars, training, training, workshops, and so on. But there are sciences that cannot be "transferred" but must be felt and experienced for themselves, then the knowledge can be understood.

So there are 2 types of knowledge,

1. Science which is theory, concept and general knowledge. This can be obtained from anywhere. This can be transferred.

2. Knowledge that is practical. This can only be understood when the practice goes through.

In the field of forex trading, I found the fact that almost 90% of the knowledge in this field is practical science. Very little theoretical knowledge. And what's worse, there are many sciences that look good and true in theory but are the opposite when put into practice. It's only good in theory, but in practice it's hard to do.

I give an example, knowledge that looks good in theory but difficult in practice.

"Use the risk reward ratio = 1: 2 or 1:3" The bigger the reward the better. Because if you lose only 1, but if you make a profit you can get 2 or 3 or 4..."

Wow, that sounds very beautiful... If the loss is small, but if the profit can be many times, so that it can cover the loss.

This is just THEORY. In practice, it is much more frequent/easier to get lost. And it's hard to make a profit. When we get a lot of losses, I guarantee you mentally down and give up first.

Like a gambler who thinks, wow, how good it is to win the Jackpot. It can be huge. The cost of playing gambling is only a few cents, very small. I'm sure I'll make a lot of money..

It's just theory, but in practice it loses more. Many cents were lost, but the jackpot never came. Finally the gambler gave up.

If you have never been a gambler, then you are offered a game, if you lose you lose $1. But if you win a profit of $3 or $5 maybe. In essence, if you win the profit can be many times more than the loss.

I'm sure you will be interested. Because the loss looks small. Luckily it looks great.

But once you live the game, it turns out that the practice is EASIER / MORE OFTEN to lose. Loss of $1 seems a little but if it happens very often, it takes a long time too big.. Finally give up..

Facts on the ground. More Gamblers are losing and going bankrupt. Few gamblers are lucky enough to get BIG PROFIT.

Again, I give another example.. "Follow the trend.. If you want to profit in trading then you have to follow the trend.."

Sounds easy and simple advice, but in practice is it that easy? When the price goes up, we open buy. When the price drops, do we open sell?

In fact, many traders are confused and confused.. Precisely when the price goes up, they buy it. Prices have turned down. Or when the price drops, sell. Then the price turned up. DIZZY..

Follow The Trend is just an ILLUSION. The price moves back and forth a lot, there is never a straight line. Then whether to counter trend / against the flow? Later in the next article, I will explain how to do the correct counter trend so as to produce a high probability of profit.

So in conclusion, good in theory is not necessarily good in practice. Trading is a business full of fantasies and hallucinations.

Those were two examples, that there is a lot of knowledge in trading that looks good (in theory) but is difficult in practice. Reality is not as beautiful as dreams and expectations.

In closing my advice, don't trust anyone until you experience and prove it yourself.

Don't settle for just hearing "he said.. he said.." Trading is dynamic. You cannot judge and draw conclusions from just a glance. In-depth research and observations are needed.

Vice versa, there are sciences that look bad in theory, but in practice are not "bad" in theory.

PLEASE READ ALSO: SUPER DYNAMIC AND MULTI INTERPRETATION BUSINESS TRADING.

With more practice, practice and increasing experience, you will discover new "sciences" that were not thought of before.

CONSISTENT AND OPTIMAL PROFIT GREETINGS

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