It has come to my attention recently that most people who embark on the journey of trading, provided that they learn a sound methodology like what we teach here at the Fx365 Institute, successfully learn how to trade the screen that is in front of them.
What actually becomes the challenge for people to overcome, is not the ability to get themselves into positive trades, or in the words of our Director of Education, Mr. LaCurtis Mayes, ‘I ain’t worried about being able to pull no pips…’ but instead, the ability to manage themselves emotionally at a large enough pip value to actually make their trading profits meaningful.
As the adage says, 100 pips at a $1 a pip is not the same as 20 pips at $10 dollars a pip.
I don’t know about any of my fellow traders, but if you are anything like me, you may react differently in your trading as you move up the lot ladder in dollar amounts.
This is where the exercise of emotional weight-lifting comes into play. For me, trading the same lot size for months at a time did very little for me emotionally. But what I did find, was that when I multiplied my lot size by 20x I was confronted with a whole new set of emotional challenges.
After quite frankly being generally discouraged by my performance at this elevated size, I reduced my pip value by 15x and found that I now was trading very well, virtually emotionless, and making quality decisions. The upside was that now I was trading without emotion, at a lot size that was 5x my original lot size.
If you are feeling very stuck with moving forward with your trading, it may be time to experiment with stretching yourself emotionally. Remember, as the FXCM disclaimer states,
‘trading can be potentially risky and do not risk more capital than you may be comfortable losing.’ Having said that, if you push yourself into a lot size that is uncomfortable to you, even if you return later to a smaller lot size, you will likely end up trading with indifference at a lot size that is greater than where you first started.
Eventually, we can achieve the destination of being able to trade a $100+ pip with indifference.
Again in the words of Mr. LaCurtis, ‘if you are going along trading a dollar, 2 dollars and think you are going to make money at this, you’re fooling yourself.’
So here is to emotionally weightlifting and breaking through plateaus!
By Payton Parnegg