Similar Articles in: Forex, Advice, Perspectives
, Free Forex Signals, Signal ResultsOne in the Bank is as Good as Two on the Chart
Author: The Geared Investor
August 19, 2008
My system is not very heavy on technical indicators, so I have to use alot of solid trend following while using discipline when trading with resistance levels. My ideal trade is following a trend that does not move too quickly in any direction when looking at 1 hour charts. If the currency pair starts to move quickly, I monitor my trade very closely. If all of the sudden, there is a favorable turn in the direction I am trading because a news flash had more of an effect than I thought it would, there is a good chance I am going to lock in this profit. Does this mean that I am breaking my system to take these pips? I don't think so at all. I will simply take the profit, watch to see if the pair returns to the normal pattern I was looking for, and then get back in if the news didn't effect the overall trend. This way I have my bird in hand, and I can deal with the birds in the bush later.
After all of the trades that I have made, I can honestly say that I am now disciplined enough to not get upset if I take a 50 pip profit when my gut tells me to get out, and then the pair keeps trending and would have given me 200. Many wise traders I have come to listen to have told me that 'disciplined traders always live to trade another day'. And another great quote is, 'there is always going to be another trade'. I have also trained myself to know it's ok to not be in a trade all of the time. Acutally, the more I trade, the less I trade if you get what I mean.
Systems that are based solely on technical analysis and automatic systems can be very profitable in the hands of the right trader. But I guarantee that the majority of the top traders also make frequent 'from the gut' calls in their trading. I think this is just the general nature of someone who understands capital preservation. I am going to write an article about my definition of trading discipline in forex. I think I have earned the right to be able to write this article based solely on the fact that I am nowhere near 30 years old, and I paper and demo traded forex for 5 years to start my journey into this beast of a market. I think that begins to qualify me as disciplined and humble in the eyes of those who want to jump in and make MONEY MONEY MONEY!
How many of you have a system but frequently go with your gut when the waters get rough?
Related Posts
- How to Still Give Something Back to Those in Need During a Recession
- Think You're Closing Trades Too Early? Hindsight is the Devil
- How to Become as Good a Trader as You Want to Make Yourself
- Is Forex Trading Really Commision Free? It's in the Spreads
