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 1)  Read This First

 

 2)  Why SO IMPORTANT To Keep A Trading Journal ?

 

 3)  Why Are You Always Late & Wrong With Trend ?

      

 4)  When You STRUGGLE when Account Is Small ?

     

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When Your Account Size Is Small, You Will Definitely STRUGGLE To Succeed Unless……

Dear Valuable Friends,

” When Your Trading Account Size Is Small

You Will Definitely STRUGGLE To Succeed At This Forex Trading Game ! “

( Proven after I personally communicated with over 10,000 newbies these 6 years+ ! )

If You are truly serious on AVOIDING this ” common DEADLY obstacle ”

( one that caused most to FAIL eventually ) ….then read this entire article very carefully

as it would definitely help make Your Learning Journey ahead MUCH EASIER !

Ok….let’s start !

Ever since I started my Newsletter service back in 2009 FEB

sharing ” Valuable Forex Strategies & Trading Tips ” for F.ree

( through my Forex Trading Empire blog )

I have the opportunity to communicate with over 10,000+ ” inspiring newbies “

from all over the world…..

from all walks of life…..

Yes, if  I did NOT decide to start a Forex trading blog back in 2009 FEB

I would NOT have such opportunity to communicate with so many

Newbies & Traders from all over the world !

It is certainly Worth every single SWEAT put in for the past 6 Years+ !

( though at times I really just want to give up then as there are just

TOO MANY EMAILS to be Answered every single morning !)

But having ENDURED so many years now,

I can certainly say that I can indeed feel a SENSE-OF-SATISFACTION !  )

( enough of grumbling……let’s continue )

————————————————————–

One thing I noticed is that :

————————————————————-

MOST would ” give up Trying ” this forex trading game

after about 2 – 3 Years !

For those that ” hanged on still ”

they are only ” barely Surviving “

or still in a ” Deficit “

because of the ” HUGE Losses ” that occurred at some point

during the past 2 – 3 years trying this forex trading game

And whenever I ” looked back ” at those emails I exchanged

with those 10,000 readers again…

….surely I would notice something ” very common

about their PATHETIC situations

that is :

” They were ALL trading with a SMALL Account Size

in the range of  Usd$500 – Usd$5000 ( normally ) ! ”

Back then ( around 2010 – 2011 period )….

I seriously Don’t Understand why MOST of them shared such ” Common Failure ”

( although I came to know that they are all trading with a Small $500 – $5,000 account size )

Hence , it really made me wondered about :

is it SOMETHING to do with their ” SMALL Account Size ” ….at all ?

So I spent the next 6 – 12 months after that

to ” Study and Research ” very intensively into this area of :

SMALL Account Size

vs

One’s Trading Success

( especially how they would IMPACT on one’s TRADING PSYCHOLOGY ! )

———————————————————————–

And INDEED…..

this was the ” SHOCKING Truth

that I FOUND OUT :

———————————————————————–

1) When You are merely trading with $500 – $5000

kind of ( small ) account size….

……even if You CAN MAKE +20% Gain each month

that’s ONLY $100 – $1000 trading Profit for You

Enough to Survive on that small amount….. at all ?

I certainly DON”T think so !

2)  So how do the MAJORITY 95% ” compensate ” for the SMALL GAINS ?

( If he / she is NOT willing to INCREASE their account size……that is )

Well……..the ONLY Way is to AIM FOR EVEN MORE GAIN %

and the HIGHER ( More INSANE ) GAIN %……… THE BETTER !

( worst, they would always presumed it is ” Easy & Realistic ” to obtain ! * haiz * )

3) But the ( Serious ) problem with US ( Humans ) is that :

when we WIN => No Issue at all !

ALL humans can Definitely HANDLE WINNING ( SUPER ) WELL

agree so right ?

But what about when the ” Opposite ” occurred ?

You see…

when You AIM for +20% Gain per month

and ….

….You’re trading with the Conventional ” Stop-Loss ” way to protect Your capital

it is very NORMAL to experience Deficit in the range of =>  -40% ….or -50%  ( at least )

Yes => Double – EDGE Sword !

You can GAIN that much….

You can LOSE that much ( or more ) !

Agree so …..on this right ?

4) Now…..upon seeing that Your EQUITY has DROPPED to – 40% or – 50%  ( or MORE )

what would happen to Your ” Mental State ” then ?

Of course NOT HAPPY at all ………right ?

in fact……most would be ” Extremely ANGRY & Extremely STRESS-OUT ” !!

————————

Here’s Why :

———————–

Let’s say Your ” initial ” Equity is => Usd$1000

& when Your EQUITY is DOWN to merely 50% now

….it means YOU NOW ONLY HAVE Usd$500 LEFT in Your account !

( and here’s the MOST FRUSTRATING ASPECT ) :

In order for You to ” Recover ” another Usd500   ( back to the Initial Usd$1,000 )

using the current EQUITY of Usd500 …that is

=> That would REQUIRE YOU to Achieve => A ” 100% RETURN ” !!

It is NOT just recovering ” 50% ” anymore

although You only LOSE 50% from previous Equity of $1000 !!

YES !! ….You are hearing it right !

You have to WORK DOUBLE HARD NOW

in order to ” Recover ” Your account to the Usd$1,000 previously !

See the HUGE ( Demoralizing ) DIFFERENCE now ?

————————————————————————————————

That’s the ” Exact TRIGGER ” when MOST

would go into such => ” Self-Sabotaging ” mode :

( because they simply CAN”T STOMACH the fact that

they now have to WORK DOUBLE HARD

in order to regain to the Initial Usd$1,000 previously ! * frown * )

————————————————————————————————-

1) They would then START TRADING =>  with a ” ( Super ) REVENGEFUL ” Mindset

because he / she is BLAMING the market for making them LOSE !

( Very FATAL with such Mindset )

OR

2) They would START TRADING with =>  ” EXTREME IMPULSE “

because the ” URGENT NEED ” to get their account ( back ) to

at least USD1000 again  ( the initial size )

as they CANNOT ACCEPT the fact that their account has DROPPED

to merely Usd500 now !  ( – 50% DEFICIT ! )

=> They URGENTLY WANT to recover the previous losses

=> They URGENTLY WANT to grab even MORE PROFIT

( as fast as possible ! )

else they would have NO $$$$$ to spend this month !

( which is a very TROUBLING PROBLEM at that moment ….that’s for sure ! )

——————————————————

3) Hence, what do they do next

when such ” Emotions’ Devils

hit them ?

—————————————————–

Yes…..they would ” FORCE themselves ” into the market

and taking up ” RANDOM Buy or Sell trades

even ” Falsely PRESUMED ” that …..

they are INDEED the kind of ” Profitable Set-Ups ”

they SHOULD TRADE ON !

Because in their Mind then

it is only filled with this ” Fatal Thought ” :

=>> MUST RECOVER THE LOSSES FAST !!

and made them totally BLIND to other ” Risks ”

which they should CRITICALLY consider too !!

* Very VERY FATAL ….indeed ! *

4) And…… How do they ( Normally ) try to Satisfy

the SUPER URGENT NEED to ” Recover ” their Past Losses ( FAST )?

ONLY ONE WAY

that is :

=> They would Go in with ” Freaking BIG LOTS ” !

At the sametime….even ” ( Stubbornly ) CONVINCED ”

oneself into :

FALSELY BELIEVING that with the particular ” Set-up ”

that they are Buying or Selling on ( then )

it is a ” MUST  – WIN -At – ALL-Costs ” kind

( as they simply DO NOT ACCEPT LOSING anymore

….at that SUPER-IMPULSIVE moment ! )

hence even if he / she is going in

with ” FREAKING BIG LOTS SIZE ”

it is ” NOTHING WRONG ” at all !!

Yes….they totally ” DON”T GIVE A DAMN ANYMORE ” about :

” How HUGE ……& HOW HEAVY the LOSSES would be for them

if they are WRONG !

Basically, they are ” STUBBORNLY ” Only Want to See => ONE OUTCOME

which is that :

=>  they would WIN FOR SURE ( & MUST WIN ) !

And once You ” entered ” into such PHASE filled with EMOTION’s DEMONS ….

it is literally IMPOSSIBLE to ” Turn Back Anymore “….99.9% of the time

that’s when it would lead to one LOSING ALL CAPITAL  ( MARGIN CALL )

and then make You FALL DAMN HARD ……

=> feeling ” Extremely Disappointed + Devasted & Hopeless ” ……after !

Some of the ” More Aggressive + HOT TEMPER ” kind

they would ” Deposit ” MORE FUND again

and simply do the SAME THING

( Extremely URGENTLY ) wanting to FIGHT BACK their losses

in order to PROVE that they are NOT LOSERS after all !!

YES !!

Exactly like being trapped in ” Quick Sand ”

the more You try to STRUGGLE

the MORE SEVERE & FATAL it is…

as You would ” SINK MUCH FASTER IN ” !!

——————————————————————————————-

But by simply STOPPED TRADING the moment

Your account dropped to  – 10% or – 15%

( & Stay STILL really CALM )

——————————————————————————————

But on the ” other hand ”

IF

You did NOT choose to AIM for +20% kind of Gain

but just +5% kind of Gain

and the moment Your Suffered a FEW LOSSES in a row

( due to Your Stop-Loss being HIT consecutively ….)

with Your Equity dropped to – 10% or – 15%…

…IF You quickly STOPPED ALL TRADING then

…step aside and re-assess the entire situation carefully again

( while still staying COMPOSE & CALM )

…..You would even NOT hit such – 40% or -50% kind of Nasty Deficit …..so easily

right ?

As such, You would NOT be landing Yourself in such ” FATAL ” situation

that majority 95% would SURELY land into

And by ” Avoiding ” such FATAL Situation

( one that has PROVEN to lead into a ” MARGIN CALL ” situation for most )

it is already a ” Beautiful Battle ” WON on your part

because You STILL have YOUR CAPITAL to ” Continue To RECOVER ”

the previous -10% or – 15% losses

and that is certainly much ” EASIER ”

then when You URGENTLY HAVE TO RECOVER  ” 100% ” kind of situation

makes perfect sense ….right ?

See the kind of ” Trading Mindset ” I have developed till date now ?

( since started trading as newbie back in 2006 )

———————————————————————–

Just like What Warren Buffet said so :

1) The First Rule Is NOT To Lose !

2) The Second Rule Is Never To Forget Rule #1 !

————————————————————————

And this is my Own ( Aaron Tan’s ) Version :

1)  The First Rule is NEVER Allow Yourself To Even

Enter The ” SELF-SABOTAGING or REVENGE TRADING “

Kind of Nasty Situation !

2) The Second Rule is NEVER TO FORGET RULE #1 !!

————————————————————————–

Because as long as You can AVOID a situation that

would lead You to suffer a ( Fatal ) MARGIN CALL

it means You would still have =>  ” ENOUGH BULLETS ” on hand

to handle MORE ENEMIES in future !!

Makes Perfect Sense ….right ???

* smile *

But of course

after reading what I shared today

most would ” Confidently ” tell themselves that :

” they would NEVER allow themselves to even get into

the SELF-SABOTAGING situation “

but after YOU experienced a ” few losses in a ROW “…

YOUR mind would NOT be able to STAY

=> ” AS CALM & LOGICAL “….after that

( Yes…the typical =>  ” Saying is easier said than done ! ” )

Please be ” Aware ” of the Level Of DIFFICULTY Needed !

Never fall prey to believing that as long as You READ enough ” Theories “

about Trading Psychology..

…then You already have the WINNING PSYCHOLOGY of the TOP 5% Elites out there !

Alright

so much for this email today

Do make sure You really BEAR what I shared above

it would BREAK OR MAKE You …eventually

I am truly serious …

Of course, I presume You would WANT to be a TOP 5%  ( too )

instead of

=> ONE who always ” Entered ” into the SELF-SABOTAGING situation

and LOSING Your entire account  ( due to Margin Call )

…..one after another………..again & again…

right ?

——————————————————-

Remember these Wisdom :

——————————————————

“He will win who knows when to fight and when NOT to fight.” – Sun Tzu

” Successful in investing doesn’t correlate with I.Q once You’re above 125.

Once You have ordinary intelligence, what You need is the temperament to

control the urges that get other people into trouble in investing …” Warren Buffett

Thank You for reading this far

Let me know if You have any questions for me

To Your ( Real ) Forex Success & Financial Freedom,

Aaron Tan ( your trading friend )

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