What is a good or bad trading?

A good trading is simply a position that has been taken and managed according to your trading plan.

A good trading is not measured in results. It is possible to have good as bad operations losing winning trades.

Good losing position

Let's say your system requires a long position on a stand and a hammer or a doji candle. You see market movements are eager to jump, however, wait for your system to issue a signal before executing a trading order.

Finally, the system gives the green light and takes a lot in EUR USD. Trading that works for you for a while, but the course of the currency pair finally hit its stop-loss.

Do not worry, my friend. You only have one good trading loss! It will cost you some money but you can be proud because you have been disciplined in following your trading rules.

Poor winner trading

Now suppose your trading plan states that you can not risk more than 5% in a single transaction. You see a pattern on the USD / CHF seems to be an excellent opportunity. Trading is so brilliant that you can not resist, you end up having a 20% risk to your account.

Trading is a winner and you are sitting on a bundle of banknotes!

It is not necessary to celebrate this "victory", which has just had a bad winning operation. It may have resulted in huge benefits, but it did not follow its rules. You have had lucky! Keep in mind that in the world of forex, bad luck is not very long in general.

What should you do with good offices?

If you follow trading rules with discipline, pat yourself on the back! Remember that at the end of the day, traders are trying to be consistent in the execution and trading process, their decision to follow the rules is a step in the right direction.

As I mentioned earlier, even if you were not able to make a profit from your trading, you simply have to learn from this experience by analyzing trading behavior. You may be able to decide if adjustments need to be made next time. This learning experience can even help improve your trading performance later!

What should you do with the bad trades?

If you do not follow your rules and your position is still open, close the position while there is still time!

When you are in the middle of a bad deal, do not lose hope yet. Remember that it is still possible to remedy this situation. For example, if you have not followed the risk management rule you have to raise the cap gradually, you can still correct your trading by adding a trailing stop by your rules.

However, if you have already closed a bad deal, do not feel bad now. We are human beings and contrary to the robot traders (Expert Advisor), we make mistakes. By contrast, remember that you should not make the same trading decisions later. All forex trading must be registered and filed in a trading register.

The key to a Forex trader is to focus on the process and not the profits. Every trading decision must be constant and determined based on a trading plan that leaves no room for improvisation.