Every time I work with a trader who realizes that he or she can trade profitably, the first thing that the trader starts doing is thinking about scale. Here are some examples:
If I can do this with one currency pair, imagine what I can do if I trade two! Or ten! Wow! I can make some pips just trading during the morning! What if I traded all day!
And so on. We think about increasing the scope of what we do, in order to make even more money from what we have realized we can do. The problem is that sizing up in lots, or in currency pairs, or in time to trade -- all of that is one of the hardest things to do.
A great way to ruin your performance is to make the assumption that just doing more of it will make you insanely wealthy. Next time you're tempted to increase the scope of something you do, I implore you to think instead of decreasing what you are doing. Do less. Cut down what you do. Keep it simple. Manageable. And build your account step by step, safely and sanely.
