Watching monopoly money on a practice account, a trader feels immune to the pressure of losing or winning significant amounts of their cash.
A $100,000 or $200,000 stake, in a fantasy currency trade with no consequences, is like being allowed to visit Fort Knox with a carrier bag and no security.
When you move to a live account everything changes.
A new HD TV or weekend away could have been yours, instead of pointless hours of anxiety and frustration.
There is no trill in watching the bid and offer of a rate you cannot control, move slowly away from you entry level. Every pip, twisting your arm behind your back, pushing what was a tolerable ache into a level of pain you had never considered you would tolerate.
Then your mind begins to play tricks on you. First, thoughts of your past successes in you practice account emerge, then you think of all the other accomplishments in your life.
You are a winner! You believe in yourself! You are not afraid of anything!
Then the market lurches even deeper into the red, compounding your losses.
It is now too late to back out you have to stick with it.
Eventually, the terror has to stop. Any price is worth paying to end this tragedy.
If you have a reason to put on a position and events change so your reason proves to be false… GET OUT.
If you have a price beyond which you are unwilling to loose money and it is reached… GET OUT.
The market does no care about your emotions.
Stay cool! Stick to your plan. Over time your trading will settle down.
Brian Kiely
Forex For Anyone.me