Hi everyone,
Not long ago I was PM'ing with someone who was taking his first baby steps into Forex trading. He was telling me how he was demo'ing some of the systems explained in the system section of these forums with rather humble results. Then I reviewed some of his trades and I asked him "I see that a number of trades you take are counter-trend. You are aware of the extra risk of those traders, arent you?". I was shocked by his reply: "I dont know whether they are counter-trend or not. The system signaled an entry and I just took it. I heard that discipline and trust in the system is key"...
That got me curious: how many of you beginners are aware of where the trend actually is pointing out? do you follow a system blindly without taking into account the larger time frame or whether those signals swim against or along the flow? Fading the trend is a very complicate way of trading (I personally don't do it), so why do many beginners try to trade that way?
Not long ago I was PM'ing with someone who was taking his first baby steps into Forex trading. He was telling me how he was demo'ing some of the systems explained in the system section of these forums with rather humble results. Then I reviewed some of his trades and I asked him "I see that a number of trades you take are counter-trend. You are aware of the extra risk of those traders, arent you?". I was shocked by his reply: "I dont know whether they are counter-trend or not. The system signaled an entry and I just took it. I heard that discipline and trust in the system is key"...
That got me curious: how many of you beginners are aware of where the trend actually is pointing out? do you follow a system blindly without taking into account the larger time frame or whether those signals swim against or along the flow? Fading the trend is a very complicate way of trading (I personally don't do it), so why do many beginners try to trade that way?