One of the biggest reasons people will lose money trading is they are too biased and it becomes a struggle against a particular market. Be it gold and fighting against the downtrend or something like the DAX and fighting against a rally. Whenever you are on the opposite side of a trend, you are playing against the odds and dancing with the devil.
The first thing you have to do is take a deep breath. Learn from your losses. You are paying dearly for that education. You are too focused on a single market and it is becoming a personal war to prove who is still standing at the end of the day.
If we take these two extreme examples, gold and the DAX, if you already feel anxiety that you want to disagree with whatever it is I have to say, you are way too personally involved in that market. The first thing you should do is liquidate and walk away. Look at another market in which you are not so personally involved. This is not a contest to prove you are right and the rest of the world is wrong.
Both gold and the DAX are strongly influenced by the currency trend in motion. The further decline in the Euro, the stronger the rally in the DAX. This is not a rally about corporate profits and economic growth, this is capital betting against the survival of the Euro. Get on point here.
Likewise, the stronger the dollar, the more difficult it will be for gold to rally in dollars for gold requires a general rising fear of banks and government. That is when it makes its strongest rallies in history. Forget fiat, inflation, Ft Knox and the rest of the bullshit.
Step back. Look at the trend – it is as they say YOUR FRIEND. Try not to trade against the trend of any market unless you are dispassionate for only then can you buy and sell based upon trading. Pick a market you have not gone to war with. That is where you have to learn how to trade – DISPASSIONATELY. This should be about making money not proving you are right and unvarnished. You cannot wing such wars – you will lose.
