In today forex faq, we have a question from one of our fellow readers regarding his problem on entering a trade.
Below is the question
Sir, Just now I have completed 2 years in forex trading. I have successful system for trendy market and also for consolidating market.
I recognizes the right set up with my all system rules fulfilling . But the problem is that even after recognizing the right set up and fulfilling my system rules I almost all time not able to place order.
Please guide me for this psychological problem.
First of all, when you say that you have a successful system for trendy market and consolidating market, have you back tested it before.
If you have tested it and find that it is profitable for at least 3 months in a row, I dun see why you are unable to place the order.
One of the reason that I can think is that you do not have any confidence in your strategy. If your strategy had been back tested and had been profitable for at least 3 consecutive months, you will not even hesitate to enter a trade when the setup is right.
Therefore one way to help you is to start with trading demo. The reason why you do not dare to enter a trade is because you are afraid of losing money. So the best way for you to get started is by trading demo account.
At the same time, trading demo account can allow you to have a feel of your strategy without worrying about losing real money.
If you are able to make 3 consecutive months of profits in your demo account, you will have the confidence to enter a trade in your real account.
If you realize that you are hardly profitable or even losing money in your demo, you will know that the strategy you are talking about does not work and you have to be grateful that you do not dare to enter a trade in the past.
For all my students, I also gave them the same advice. I always emphasize that they should start with trading demo account. This is to allow them to improve their execution skills and at the same time build their confidence in the strategies that I have taught them in the course.
I hope that I have answered your question and do feel free to email me again if you have any more question.