The way I personally experience it, most traders can get into the right trade every now and then, but no one can get it correct all the time... no one... no matter how good your system is... unless, and I really mean it, you are someone who has the ultra-patience to wait (and wait and wait and wait...) for the right setup to kick in.
What I meant here is not for you to glue yourself to the screen all day long, but to wait and be there when the moments come.
As a part time trader (still for now), I discover that one of the biggest challenge is to be there when a good setup is formed. You can make pending order etc but that is simply not my style as I prefer to trade and scalp the price actions most of the time, especially when big economic news are released.
Trading and scalping the price action from the 15M candle is pretty easy if you knew how, but then you need to be there when the action starts, or when the market start making a call for you to join in....
Anyway, back to the subject matter... I do believe now (even stronger) that it is poor risk management that acts as the number one killer to your account... getting it right is of course important, but to survive during a losing streak? It is all about having a good risk management... with of course, a half-decent system that gives you the winning edge.
For now, instead of deciding on the % of the account that I am willing to lose, I play around with the dollar sign... meaning that I do decide upfront on how many dollars that I can afford to put on the line for this one particular trade... but yes, still this is normally within 1% to 5% of the account level... at times, 10% is the most...
AND YES, join in the market during the European - London - US Session overlap only... Other than those periods (except when big news), market would normally be moving without any significant volume or big players...
Anyhow, as a trader, please do not forget that though risk management is vital, still ultimately... it is your psychology that needs to be in a balance state as not to initiate any unnecessary trade when the market condition is not conducive for you to join in....
Whether you survive, prosper or highly successful in forex trading, 90% of this depends on you... so when I discovered the statistic that 90% of traders lose money, it is because they didn't realize that 90% of their winning factors do lie within them that they have yet discover or realize... Instead of perfecting themselves (ie as trader), they look for a perfect system, blaming the market when the trade went against them, blame the brokers etc etc etc...
Do not victimize yourself in such a way you put yourself among these 90% of losers. I am not saying that I have already become the top 10% of traders, but for sure I am working days and nights into becoming one...
And most importantly... I believe in what I am doing to reach that level... it is a matter of when...
Safe trade Guys... I am still in recovery mood from last month's losses...
;)
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