I'm sure you've heard the above words a thousand times, and certainly fully understand their meaning. Let's focus on the first part - a fool learns from his mistakes. It seems clear, but what do you do if even a fool learns from mistakes, and I'm not ?!
Unfortunately, when it comes to trading in the forex market, I make the same mistakes over and over again ... I guess I'm not the only one facing this problem (a similar case). Often our inner emotions and feelings are our worst enemies, but what can I say, I have a feeling that my broker lives off my doubts and mistakes. But, of course, this is not the case, so let's look at the reasons why traders are repeated over and over again banal mistakes.
Poor knowledge of the theory.
If you do not know what to do or do not know how to to do it, then you most likely will continue to move in the wrong direction. Here is a simple example: if you do not know what a stop-loss should be placed on the situation, and not be permanent, then you will always put the wrong foot level.
Many traders put the same stop and hour and four-hour chart, the same stop-loss and they are using a 15 minute chart. If you limit your loss of 30 points in a small time frame, then that's fine, but the four-hour chart a stop of no benefit. In addition, the stop order should be set at the technical or psychological level.
Stop loss should not be a fixed amount or number of items. The decision on the similarity of "I will always limit your risk 20 or 30 dollars," is fundamentally wrong, especially in relation to the market. Such errors occur due to lack of knowledge, and, of course, the topic is so broad that it would be possible to fill several pages with errors beginners who never read per day. Although I could be wrong, because I do not know how fast you can read ... See? - Lack of knowledge.
forex error
The inability to make a correct conclusion.
Consider this situation: you are fighting head against the wall, you hurt, maybe even you happen concussion. In the end, you conclude that, if you do not want to go to the hospital that the wall of your head harder and better to stay. As you can see, everything is simple.
But forex trading is more complicated: for example, you are a day trader and make about 10 deals per day, ended the day in positive territory. If one, two or three deals were taken on impulse and bring you good profit, and the remaining transactions were unprofitable, you do not even pay attention to them, and just pat yourself on the back saying "good day", not thinking error . In other words, the monkey of the transaction, as I call them, do not get in our field of vision, and we do not make any conclusions, although it would be necessary.
For example, such an analysis, I made a few deals because of greed or depressed, I do not have to do so in the future, if you want to preserve your capital. Outcome next - analyze all of their transaction, learn from your mistakes and make conclusions!
You are not a trader.
Yes, that's right, let's face it: some people just are not designed to be traders. Their mentality is not suitable for the job. Are you foolish man? Of course not! You can be a good specialist, a skilled craftsman or an effective manager, but when it comes to buying or selling stocks, currencies and other assets you are completely incompetent.
trader error
To a greater extent this is due precisely to the inability to learn from mistakes and make conclusions. Errors will be repeated again and again, because such people are stubborn and willing to go to great lengths to prove their case. They will sell even when the price is increasing day by day, its losses will not stop, a "trader" will hold on to his position, or until such time as the market finally does not go his way, or to a zero deposit.
And if the unfortunate trader would still be able to sit out a loss, he would beat his chest and loudly declare victory over the market. It is logical that sooner or later the market will go down, it does not mean that you are right, you must be able to effectively manage money and it's not all the strength.
Errors - the best friend of the trader.
The most important, and probably the only reason why I love my mistakes - they help me improve. It is impossible to become a better trader, do not catch a single stop-loss. I confess that on my way I have done, probably, all conceivable errors, and often repeated them again, but in the end was able to take control of their insolence, excessive activity and stupidity. That is nonsense, otherwise it can be called? Remember the words of Einstein: "Insanity do the same thing, but expect a different result." Solve - fool you or not.
