Imagine if someone came up to Tiger Woods when he was in high school and told him he could make more money as a football player and he should leave behind his plan of developing his natural talent and love for golf.
Many traders start their careers trying to find the perfect strategy that rains pips day in and day out regardless of the trader using it.
There have been too many automated trading systems that have cornered this emotional market. This will save you time, money, and sanity. Instead find the right system for you because YOU are the secret sauce that will make your trading system work.
YOU are the most important ingredient through discipline, patience and practice to identify the highest probability setups consistently. A system that we can follow consistently and refine over time is now our goal. You will focus on consistency and confidence in your trading system over perfection. Many traders we work with rely on indicators to give them entry and exit signals. This is because indicators can provide clear and easy to understand signals of price action.
Your ability to read and act on the indicators in line with your money management system will become the strengths that no one can duplicate but you. This is will become your niche and how your edge will develop over time.
Getting every pip out of a trend is likened to a hole-in-one for golf, rare and not to be expected. Because amateurs are going for perfection, they often hold on to losing trades too long trying for the market to swing back in their favor until their hand is forced to exit the trade. This common tendency is an account equity disaster.
Your system would be much better off with a strong risk: However, Tiger Woods and most golfers know that par will win you a lot of money on the tour. In conclusion, professional traders focus only on taking trades that meet their pre-trade checklist based on strong money management rules and indicators they are comfortable reading. Amateurs hold on to every trade without the mental fortitude to accept a loss.
I would suggest trading in smaller sizes so you can practice the strategy of the professional. This is, making each trade by itself insignificant and using the collection of trades in your strategy as your edge. DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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