Though it may seem counterproductive, the drawdown (or series of losses) is important to grow as a trader make. These are important because they set a threshold from which to improve their performance by optimizing their confidence in their abilities. The drawdown are not good for "lost in limbo," boasting and exaggerating the capabilities of each one .. i.e., to play with his feet on the ground.
The size of the drawdown must be set before starting the actual operations, either through the demo account or looking at historical performance of the methodology that we implement. This estimate should be as objective as possible to give a result as reliable as possible.
Still, the drawdown may be overcome by market conditions, etc... Therefore it is always what to do is determine whether misconduct occurred in the hours of operation or whether the system needs a revision (to do this is dangerous, because they leave just when a system is in the greatest loss being lost recovery that always ends up). However, if the system has historically been consistent, he must psychologically extreme confidence and continue with it because what took place with greater dedication.
Fourth Item: The fear of failure
Who has not been afraid to push the button to buy or sell it? Fear is a normal reaction in a first stage operation, but this is what exists in the forex demo accounts, so that the fear to fade.
Once past the first stage as an operator, whether those fear to fail, to do the operation correctly, and so on. Persists, then the problem is more serious and requires you to fix. What advice in these cases is to restart the stage 1, i.e. you open a demo account and start the process again. Only when the fear has gone wrong you will be able to implement a methodology in a strict and rigorous.
Fear of failure is usually caused by entering the market without adequate capital, with distorted claims, or without the knowledge / discipline enough. If these variables are analyzed correctly, the fear of failure disappears and income in the forex market is a rational process in which everything happens for a reason, he explains, and that details would be specified as an entry into the overall technical log of transactions that are done.
