Well, I have wrapped up today’s forex trading practice session with another big loss and again for the same reason, taking a chance first of all, and then not cutting my losses soon enough because I figured it would have to turn around. If you’re just learning like me, here’s a tip, it doesn’t have to do anything. It does what it does. You can’t predict it will turn around. You can’t assume it will turn around. You can’t play this like a game of chance. You have to cut your losses when it’s time.
I don’t think the chance I took was a foolish chance. Perhaps it was an uninformed chance which someone with more knowledge of forex trading might have known better not to take. It was a chance taken expecting that the currency value would continue to fluctuate in a certain direction. Things didn’t work out that way; but I had hours of it hovering at a point where it was safe to keep the positions open a little longer to see if it would go in the anticipated direction. Once it dropped out of the safety zone I needed to go ahead and close the positions regardless if just after I closed them it went in a direction that would have meant profit for me had I not closed them. That way instead of losing $1000 I would have lost $400 which is much easier to recover.
Or maybe the fact that it was hovering so long where it did should have told me something. Well, I have about 20 days left to practice and learn. We’ll see what happens tomorrow.