Page 121 - Ultimate Guide to Currency Trading

This higher number of trades that you are making is directly tied to your trading plan. It is just
a function of math that you will be stuck with a higher number of trades that only break even or worse,
are losers. If you are trading for six or eight hours a day, in and out of currency pairs, and you are
getting into and out of five, six or more trades per hour, then the number of losers can be
discouraging.

The percentage of winners to losers is most likely the same. Since you have a large account,
the dollar amount of the losses can be quite large, and this, above all things, can lead you to
discouragement. When you are looking at your losses, you should remember to compare them to the
dollar amount of your gains. Most likely you are winning big too, and most likely you are still having a
net gain in your account when you take the winnings and subtract the losses. If you are creeping
ahead, that is fine! A few days or even a few weeks of slow growth are normal. Sometimes the FX
markets are very dormant and there are very few good trades to be made. As long as your winners
beat your losers, then you are okay.

It is sometimes psychologically daunting to overcome a loss that involves a big dollar amount
and therefore looks really bad. At these times you must realize that you are probably trading very
often, and with a lot of money in each trade. This is the reason the losses look so bad. This is also the
reason that the winnings are so wonderful. An aggressive risk/reward profile and loads of margin in
your account can lead to sometimes hurtful losses. It can also lead to big money when the FX trades
are on your side.