I trade FX. Been learning it for the last 2.5 years. Start off thinking there is a perfect signal with sure win strategies. While people whom had made it kept repeating money management and discipline. I'll convince myself "What money mgmt"? If my buy sell signal is correct most of the time there is no such thing needed. Although I don't trade high leverage, but I do chased loss with slightly higher leverage than normal. This style will hit anyone hard on bad runs.
I have kind of stopped looking for a Holy Grail system. I created my own system and wrote down the rules of engagement. Stay discipline always by sticking to my trade plan and rules. Proper Money Management. Cut trade short and let trade ride till system says out. Although you may find it hard to believe but once you have your rules down its really clear. It will cut down your emotion and GREED, although not all of it but its good enough to start trying. It is not 100% but the percentage is good enough. Most self help courses such as Adam Khoo's course make us stop and write down and etc on hard copy. It really makes your mind analyse. You will realised important points in your system and some are redundant. You will know what you want from your system, such as entry, when to TP, SL, what time frame you want to trade and risk. The pro and con will help you refine your system better. Over time you will have a personalize system which need little improvement but will bring you consistent results presuming you follow the rules you set. Hey I know its tedious but who says trading is easy?
I plan my trade and trade my plan. No signal no trade, don't trade for the sake of trading. Trade for the only reason "Make Money". I used to look for trade even though I know there isn't one available get in and profit alittle if I'm lucky or usually the case I got killed.
Patience = Profits
Regards
David
Thursday, March 22, 2007
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