Best forex strategies and indicators
Today’s Forex Lesson is “Awesome”. In fact, It’s probably one of my best trading lessons I have ever written. It took me at least 2 days of brain power and probably 20 coffees. Please pay it forward, share it with others. Enjoy.
A sniper in the military has an edge over his or her enemy; their edge is unwavering patience, mastery of their weapon, and the ability to remain consciously in control of their mind and body for long periods of time in high-stress situations. We can apply these same concepts to Forex trading…
Forex trading is very similar…you need a trading edge (weapon), you have to master this edge, you need to develop and maintain rigid self-discipline and control, and you have to execute your edge flawlessly in the face of constant temptation to over-trade and over-leverage. Now, trading is nowhere near as stressful as war, but it still requires conscious control of mind and body.
Those traders who learn to pick and choose their trades wisely, trading like a Forex “sniper”, are typically the ones who succeed long-term, whereas those traders who act like machine-gun traders by shooting at everything they see (trading too much), tend to run out of ammo (money) very quickly and fail to accomplish their goals in the market. Let’s discuss how you can learn to trade like a sniper instead of shooting at everything (taking every trade) that comes your way… [Read more…]
Recently I received a question from a perspective FXCoaching.com customer after he saw the forex signals track record with four consecutive losses of 70, 90, 42 and 99 pips.
His question went like this: “Hello Steven, your overall trade results look good but, for example on week of August 16th 2010, you had four consecutive losses of 70, 90, 42, and 99 pips. Won’t that trigger a margin call or nearly wipe out my account?”
My reply: Whoa! Slow down. I am sorry, but what you’re doing does not even come close to resemble actual trading. Please forgive me, but I’m going to be a little harsh here.
If what you are suggesting is true, then you are definitely gambling. If losses of 70, 90, 42, 99 pips can wipe out your account, you are using WAY TO MUCH leverage.
Stop it now and take this business seriously! [Read more…]