1. Giving up too shortly
Be careful not to give in on a good system simply because it goes through bad times. Look to the long term results. It is true that sometimes the behavior of the forex capital market changes and makes a formerly workable system unprofitable, but if you believe that’s happening, simply paper trade or demo trade it for a while. Jumping into a new system is not going to unravel the issue.
There is not any system that works one hundred percent of the time. Losses are part of the method should be accepted as such. So long as your overall results are profitable, do not get excited by successes or unsatisfied by mess ups. Treat them both as numbers and keep emotions out of it.
2. Acting too shortly
If you are impatient you won’t be trading at the right point and your results will suffer. Impatient foreign exchange traders do not wait for the signals to be right but jump in and open a trade because they believe things may be about to go their way, or because they haven’t had an opportunity to trade for some time and they are bored. Huge mistake!
3. Acting too late
Hesitation, on the other hand, usually occurs because you do not trust your fx trading system. You’ve got the signals but you need to wait for another movement or another indicator before you act. If you often find yourself in this situation, you may need to check your system further or cut back your position size so that you don’t feel so alarmed. Fear will hold you back from making your move in the foreign exchange capital market at the right time.
