Why There's No Substitute For Personal Experience

by Richard Hill

Thanks for your emails.

One thing I’ve noticed is that you have such a great attitude about learning.

It’s clear that you’re willing to invest and learn.

And it’s great to see you’re starting to put into practice what you’ve learnt already.

It’s been particularly obvious to me that personal trading experience plays a big part in your learning.

And that’s the thing here...

When it comes to understanding forex, there really is no substitute for personal experience.

That’s why I’d like to share some of the personal experience of your fellow Forex Round-Up readers today...

It’s not just about the profit you make

First off, take a look at what fellow Forex Round-Up reader and one of the beta testers for my Net Trap system, Mr. Vaghela wrote in to say:

"My best trading week was the week of 19th to 23rd October, 2009.

"For the first time ever, I made a profit every day except for one. And that was not a loss but a ‘no trade’ day.

"Monday 50 pips, Tuesday 10 pips, Wednesday 50 pips, Thursday no trade, Friday 27 pips.

"A total of 137 pips profit for the week!

"And now I consistently make 1 to 2 great trades a week and I’m very happy with that.

"What I’ve learnt is... many people think that they need to place a trade every single day.

"If they get to Friday, and have not had any trade that week, they feel they should just make a rash trade, disobeying their trading system.

"Their emotions can take over, and it can often end in a loss.

"I’ve found you are much better off not trading when this happens.

"I was once told by a good trader, success is often more to do with how much money you can save, as much as the size of the profit you make."

That’s a good insight there: it’s not just about the profit you can make.

Taking the rough with the smooth

Now, check these out...

Phil bagged a winner but Mustafa hit some bad luck.

But what’s important is that both readers learned from their experience...

Says Phil:

"My most memorable trading day, strangely enough, was today.

"I bought GBP/USD and earned a nice little profit.

"I also sold EUR/GBP and am still riding that one, but what makes it such a good day for me is the fact that before I was consistently making bad decisions.

"But after having a rethink, I am now reading the charts and earning a few pounds."

As I say, though, Mustafa didn’t have such good fortune...

"I started to trade forex about 5 months ago.

"My most memorable trade was the one I did yesterday. There was an announcement on the Australia Employment rate.

"I put an entry order for long and short from the current price and waited for the break.

"Unfortunately, the price went down hit my short order and then went up again in a few seconds. I didn’t put a stop loss into my order and I lost money and just closed my trade.

"You are right; mistakes are the best teacher if you want to succeed in forex!"

Mustafa’s right - mistakes are a great teacher.

But as I said up top, the real teacher in both of these cases is personal experience.

By getting in there and giving forex trading a go, both Phil and Mustafa have learned a lot.

If you haven’t done so yet, get in there, give forex a go.

You might get your hands a bit dirty to begin with, but it’s worth it.

With every trade you make, you learn something new.

Of course, start slowly. Take it one step at a time. Start paper trading or at least use a very small bank.

But the important thing is to start - to get some experience under your belt.

OK. That’s all from me for today.

But before I go, if you haven’t done so yet, remember to email me with the biggest hurdle standing between you and forex success.

Best Wishes,

Richard Hill
Editor
Forex Round Up

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Why There's No Substitute For Personal Experience

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