you feel like your on the top of the world and can do no wrong. Smart traders cut their losses and use stops to protect profits. When traders are going through a losing period, their confidence suffers and it becomes very challenging to pull out of a slump and make winning trades. For most traders, rational thought is incongruent when going through lots of losses.
Traders need to stick to their trading plan without one is a set up for disaster. Lousy execution or the violation of the risk management rules set forth in the trader's trading plan.

This is detrimental to long term success in trading, or life in general. What I'm referring to is the uneasiness that helps a trader stretch his or emotional boundaries and can assist in conquering some of the common trading fears experienced by trading participants. This is actually good for a stock or forex trader. Speculating in the stock markets does not come easy for most traders. Talk to most traders, and the mere thought of losing is enough to invoke uncomfortable feelings. Because of the inherent risk associated with this endeavor, conquering the aversion to losing is in itself part of the winning process in the make up of the trader.

Many new traders will move their stops just a few more pips the wrong direction a new trader percenter mistake because they know they will be right, or over leverage their account which is another mistake. This inevitably leads to larger losses, often negating the wins of the previous days or weeks. This is why traders should keep a trading diary which is a good thing for new traders to use as it is a reminder of how you were feeling after a streak of winning trades, and how you felt after the losses started to come. Keeping notes in a journal, or adding notes to a chart. This is all part of being a profitable trader.

So one of the important odds enhancers for analyzing our trades is how price arrives to test the supply or demand level. To learn all of the other odds can make winning trades. You must trade with your best when you are in the markets; nothing else will provide you with consistent winning results  where winning is defined as planning your trades, trading your plan and following all of your notes. Your performance is not based on anything physical; it is all mental hence, mental and emotional tools are required. Take a look at the MACD line vs. the signal line, you can see as they move closer together, the momentum of the move is weakening. As the MACD and signal line are moving apart, the momentum of the move is increasing. By studying this simple indicator.