1. Bad Trader Traits
For: fxTrader
Date: July 17th, 2012

2. Instead of giving up
on the markets, give
up on these bad
habits instead.

3. Bad Trader Traits
1. Give up your need to be right.
The Forex market is bigger than FI and Equity markets
combined. The market is always right; do not strive to be
right in your predictions and opinions. Try harder to go
with the flow of the market. Being a contrarian can be a
costly position.
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4. Bad Trader Traits
2. Give up control.
Watching price tics is both psychologically and energy
consuming. No matter how long you watch a currency
price move you have no influence over any particular „tic‟
move. Save both you your emotional and physical
energy by not getting wholly wrapped up in every price
tic.
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5. Bad Trader Traits
3. Give up the blame game.
You and only you are held accountable for your actions.
“They” did not cause you to lose money. It is your
choices that cause you to lose money or it was your
system that had a losing trade. Laying blame is time
consuming and distracting.
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6. Bad Trader Traits
4. Give up beating yourself up for losing trades.
If you followed your trading plan then there should be
zero regrets involved in a losing trade. If you did not
follow your plan and lost then your money was your
tuition, you paid your price so mentally and emotionally
move on to the next trade.
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7. Bad Trader Traits
5. Give up your own opinions.
If you took a trade based on your own opinion you have
to give up your opinion and get out if the trade moves to
a place that proves you were wrong. Do not be
stubborn, the market is too big.
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8. Bad Trader Traits
6. Give up your inability to change your mind.
Do not be blinded by your own faith. The more you
believe a trade just can‟t miss the more dangerous it is. It
will cause you to trade too big and stay in too long. Be
man/woman enough to be wrong.
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9. Bad Trader Traits
7. Give up your past trades.
Old trades are just that, old. Each trade is a new
trade, do not become belligerent or blind believing that
old positions „owe‟ you for past losses. Absolute faith in a
losing position will not make you any money.
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10. Bad Trader Traits
8. Give up letting your trading define your self-worth.
Do not let your trading define you. It is not healthy to
become overly obsessed with the markets. Time out is
just as important as a winning trade. Preserve both
mental and physical health.
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11. Bad Trader Traits
9. Give up on losing trades quickly when your stop is
hit.
Your best trades will be the ones that are profitable from
the start, if they immediately go against you must be
prepared to be stopped out. You can destroy your trading
account when you start the “It will come back, I just have
to wait”. Discipline and patience are a variable of overall
winning strategies.
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12. Bad Trader Traits
10. Give up on price targets let your winners run
as far as they will go.
This separates the professionals from the amateurs. In
the right market conditions trends can go on to
unbelievable levels, the big wins during these trends can
make your entire career. If you set a predefined profit
target you will miss the opportunity when it comes. Let a
trailing stop take you out. Professional traders constantly
work on improving their “average” entry cost.
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13. Bad Trader Traits
Questions?
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