Desperate Traders

I was reading forum posts on SteadyOnFx forum. There were bunch of traders worrying about brokers, execution, NO system, etc. Seems like people are so nervous and in panic after relatively bigger losing day.

After such losses, people desperately started to try to identify the cause of the failure. Some people say the problem is on the broker. Others say SOFX team has to modify NO.

I say "It was one of these days. It happened naturally, and it will happen again." Nobody can avoid these days. No EA is perfect. No EA can cope with every situation.


I would like to talk about common errors that traders can make.

Trader A: Trader A got a bad loss and he decided to modify his EA. He really wanted to make the EA immune to the previous loss case. After a couple of attempts, he successfully found the way to cope with such a market situation. However, overall profitability of the EA was reduced so badly because he concentrated too much on a single case, and didn't pay much attention to being a winner in a long run.

Trader B: Trader B reduced his trading lots, drastically, after a bad loss. When he traded with smaller lots, there was a very good winning trade, but, of course, his profit was small. He got frustrated and increased his lots again. Right after that, there came a bad trade. He lost his confidence again and reduced his risk again. He finally got nowhere.

Trader C: Trader C changed his broker after one bad loss. But other traders kept winning on the broker he left, and he started to lose on his new broker.

Trader D: Trader D accepted a bad loss. He changed nothing and kept trading because he knew losing is a part of the game. He got more losses and people started to think he is really stupid. But in a long run, he was the only winner among others.


What's the difference? It's consistency (or the lack of consistency).

Why such errors happen? It comes from fear and greed.


With that said, I will probably change my broker when it obviously made its trading environment worse. But unless I surely confirm such a change, I take a loss as just a loss, nothing more. Those who are not mentally prepared to face losing days can't win in a long run. I've seen so many of these people who surrender an EA so easily after a couple of losses.

Human being are so vulnerable. Such human errors are natural thing, too. But I want myself to be unnatural.

Did I write in one of my previous posts as follows?

"When such a big drawdown happens, traders are also tested."