Forex Myths

Myth: Cut your loss short and let your profit run.

King.

-Never add in to a loss, stuff the rules...
-Never use indicators, moving averages, or Pivots, just use candlesticks patterns and price action, trade naked. (its how you use them, nobody forced you to enter on an MA or stochastic crossover)

Have to disagree with this being a myth, I know you are a martingale trader, so I see how this isn't the only way to trade, but it's far from a myth.

If you employ a trend following model, catch a several week or even several month move that generates 1200 points (pips) and start with 1% of your capital as your first position, and add 1% more for every 100 points (pips) that your trade gains, your return is staggering and you only increase your risk as your trade goes more and more in your favor.

Now if you can combine this with a solid macro model, you will really be in business.

So I believe in trading the trend and not only letting your winners run/cutting your losses, but even adding to your position as it moves along.

That "cut your losses short" philosophy messed me up for years when I started trading FX. The notion of "letting your winners run" takes years to master....I am still working on that one.

Having a profit target or letting profits run depends on the strategy, isn't that bloody obvious? Threads like this crack me up, so much rubbish.

Holy grail doesn't exist

"If I can't get it to work, then it's got to be a myth"

1. Price is a reflection of actions by all market participants.

1a. Price increases with buying only and decreases with selling only

lol, agreed! Either way, it's important not to fool yourself.

You have to trade with at least greater than 1 of reward to risk ratio to be profitable #mya$$

cut your losses short #theonebeingcalledliquidities

there is such a thing like tight SL, like < 10 pips and over time you can be profitable #againtheliquidities