Feb 12
20
We traders often read and hear of how we should never deviate from a strategy. This is because it takes a very long time to get comfortable with a strategy and be able to predict a market movement given our indicators. However, there will be many times when we will be tempted to just jump in and out of a trade grabbing a few pips for ourselves. This is when disaster strikes.
I have a strategy that I use to trade everyday. No, it’s not in my last article, “Forex Trading Profits – A Manual Trading Strategy That Works,” I would never give away my trade secret, though that strategy does give me handsome returns too. The strategy I use depends on five indicators that give me three sure-shot signals each day.
Yes, it is a manual strategy, not automated at all, but it pays and reduces the risk to a minimum. However, one must get in at the right moment because this strategy only guarantees 10 – 20 pips per trade. Missing the opportunity means sitting in the sidelines till the next setup and trigger appears, which could be many boring hours away.
Now, sometimes this can be a pretty big move over a period of a few hours in one direction. Here is where temptation and greed takes over if one missed the “get in point,” and if one succumbs, it could lead to a total wipe out!
It happened to me. And being the bad learner that I was, it happened again and then again. I saw the prices moving fast and decided to jump in and make myself a few pips. Let me tell you that was when I was just fooling around with demo accounts. However, as soon as I got in, the market moved against me. This is because the strategy had exceeded the 20 pip mark and I failed to notice it.
So, I cursed the broker for keeping an “eye” on my trades, just waiting for me to jump in and then fixing his prices to move in the opposite direction to my trade. All engineered to crook me out of some of my virtual cash that he gave me in the first place. But a lot of traders feel that way in the beginning.
Finally, when my imagination simmered down and I begin to analyse the situation, the learning process began its work and I became a wiser trader, poorer but wiser nonetheless.
That was then, six years ago. Today, I have learnt that no matter how tempting the market may look, I must stick to a tried and tested strategy. And if an opportunity is missed, never mind, with the perfect forex trading strategy, there will be many more.
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