A Poor Winning Trade

Now, suppose your trading plan states that you can not risk more than 5% on a single trade. You see a pattern on USD / CHF which appears to be an excellent opportunity. The trade is so bright that you can not resist, you end up taking a 20% risk to your account.

The trade is a winner and you're sitting on a wad of cash!

It is not necessary to celebrate this "victory", as you just had a bad winning trade. It may have led to huge profits, but you did not follow your rules. You were lucky! Keep in mind that in the world of forex, luck does not last very long in general.

What to do With Your Good Trades?

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

As I mentioned earlier, even if you were not able to make profits with your trade, you just need to learn from this experience by analyzing the course of your trade. You may be able to decide if you need to make adjustments next time. This learning experience can even help you to improve your trading performance later!

What to do With Your 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're in the middle of a bad trade, do not lose hope just yet. Remember that it is still possible to remedy this situation. For example, if you did not follow your risk management rule which requires you to stop back in slowly, you can always correct your trade by adding a trailing stop according to your predetermined rules.

However, if you have a bad trade, do not feel bad now. We are human beings and contrary to forex robot (Expert Advisor), we make mistakes. However, remember not to make the same trading decisions in the future. All your forex trades must be recorded and filed in a trading journal to keep a track of your progress.

Finally, the key to being a successful forex trader is to focus on the process and not the profits. Each trading decision must be consistent and established according to a trading plan that leaves no room for improvisation.

Learn more about forex trading.