In Forex you can be rich this minute and broke the next minute!

Oh, I’m +110 pips up, I’m rich, the market moves my way and I will buy a new car soon! […Dancing, jumping, stressing out your calculator with additional digits that no longer fit on the screen…]

1 hour later: …Oh no, my dear pips, where did they go? I should have taken profits last time. […Tears, broken glass, and many hours bad mood and a general stress…]

Well, stress, my friend, is a bad thing. If you stress yourself out while trading Forex, you will get nowhere; instead, a person inside you will get more tired, sad and unsatisfied with you and your trading. Next time, I guarantee, you will cut your profits too early and watch the market making another +200 pips but already without you. What you will get? Let’s say it out loud, kids, everyone together – STRESS! That’s right, again. Thank you!

How to deal with that?
Each time you get stressed out, take my dark secret pill and the sun will shine again! Pills are in my cabinet.
But better, do yourself a favor, while you are trading, don’t count in those pips in the first place.

Don’t consider pips to be yours while a trade is open.
You haven’t earned them yet.

And yet, traders are so cheerful seeing those virtual profits, that some of them even manage to spend those money in their bright imagination! What a trap to put yourself in!

And, of course, when you don’t get the reward you were already considering yours, you start blaming yourself and may be crying like a child. Ha-hah… Stop crying.
You need to relax and trade according to your rules and count profits only when a trade is closed, not before it, not during it.

That’s it. Simple but very effective rule: no pip counting, no stress, no early exits.

Well, well. I see some of you still have the question marks “???” in your eyes. And those questions are: How to achieve that, anyway? What should we do?
Ok, you asked. Now listen.

You should trade as if you don’t need money!

If you took this literally, I’ll explain: I meant “as if you don’t need extra money”. Protecting your initial investment and money you earned earlier is a duty of every Forex trader.

Can you do this? Can you free your mind from “I need money” statement? If yes, you may add +1 key quality to your portrait of a successful trader. If not, well, not all people are perfect…

** Forex Dark Lord **

8 Comments to this post

  1. Thank you for this lesson.
    For me it is always challenging to hold onto a trade when it yeilds +100 pips. I usually close it soon as I like to have those pips on balance. Like you’ve described, I can’t see them wanish the other minute. It will be if not stressful, then quite discouraging to watch my efforts being swept out… I’m probably the one who needs money =)

  2. I learned a little trick that most traders use. I lock-in my pips by continually moving my stop. It makes me feel free-er when i trade. Why? Because, if my stop ever gets hit, I’m going to be at some +N pips from my initial investment. I’m a happy camper. If I see +100 pips, then I move my stop somewhere above my entry point. You have to decide where you what to place your stop.

    Hope it helps you understand a little more about the lesson.

  3. That seems safe, but won’t it come back down. Aren’t they trying to find your stop? I thought we didn’t want them to find our stops?

  4. Nik, it may and often does come back down and hits the stop, that’s why managing your profits is essential.
    But, if to bring the darkest truth about Forex brokers to the surface, those who run dealing desks - market makers - CAN potentially get to your stop on purpose, if they practice unfair business(!) and badly want you to be stopped out… and you won’t know it. You cannot hide your stops from a dealing desk, because they process your trading and know exactly where all your positions are.
    Therefore, if one day for some reason you feel there is something seriously wrong with your trades, then simply change a broker; and your next better option would be to choose a non dealing desk broker, who uses STP (straight through processing) and doesn’t access information about your trading orders.

  5. I am so glad I found this site. haha :D Thank you again Dark Lord. I am only 22 and just starting out. So it’s demo for me thanks to your advice. I did try some real trades yesterday, the CNBC contest gives you $25 on FXCM to play with. Got up to $46 YAY! all about taking your small loss and moving on till you find the right trade, or so that’s what I hear ;) PLEASE don’t stop writing, this informaiton and your class is worth more than you know! thanks!!!!

  6. the information on this page is better than you can buy on any book/download

  7. hey
    just landed on this site am calling it forex bright side it is so helpful especially for the swallowed ones and want to be better next time. i give it ***** five stars kudo you will never walk alone will be with you always you have helped me so so much

  8. Hello Dark Lord,

    The saying, “Every good trader blow their first account!” Goes here.

    The mentality of ‘I don’t need money’ while trading is quite impossible to achieve before someone actually experienced profit and loss in trading.

    We need to learn from the movie, ‘Pretenders’.

    Pretend you are a professional trader.

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