Now the main challenge for every trader is to overcome the emotional opposite mindsets of fear and greed. The fear of the trade going against you does not allow traders to exploit the full potential of a trade. So instead of getting a 50 pip move we end up with 10 pips and we are happy. The truth is we are not going to be succesful without exploiting the full potential of our trades.
For example cable currently has an average daily range of about 125 pips. Most of the moves in cable occurs from the euro open to just before US open. Now with this information we set our trade time from that period and have a mindset that I am trading cable at the right time and should look for at least 40- 50 pips. The system will comfortably give you that.
By the way I have always heard traders looking to add filters to an already good system in forex factory(I can tell you better, I have gone thru all the trading systems in forex factory in 2008) so the add indicators upon indicators till the system looses its edge and everyone leaves the thread confused and bewildered. What most people do not understand is that the best filter is the time to trade. Every currency has the best time it moves.
Those london guys that trade cable want to make money also, the may push the market one way, but surely if they are to earn there paycheck for that day the market must move in a certain direction, and we are riding on thier tails as retail traders till 11gmt when the fixes begin and price may likely reverse.
Secondly keep your risk low that is the only way you can overcome fear and greed. That is the only way you can take a loss and reverse your position immediately in order to follow the market without thinking about the loss and being afraid to reenter a trade.
Finally what makes you a successful trader is not your wins but how you handle the losses when the come.
Good Night and God Bless.
For example cable currently has an average daily range of about 125 pips. Most of the moves in cable occurs from the euro open to just before US open. Now with this information we set our trade time from that period and have a mindset that I am trading cable at the right time and should look for at least 40- 50 pips. The system will comfortably give you that.
By the way I have always heard traders looking to add filters to an already good system in forex factory(I can tell you better, I have gone thru all the trading systems in forex factory in 2008) so the add indicators upon indicators till the system looses its edge and everyone leaves the thread confused and bewildered. What most people do not understand is that the best filter is the time to trade. Every currency has the best time it moves.
Those london guys that trade cable want to make money also, the may push the market one way, but surely if they are to earn there paycheck for that day the market must move in a certain direction, and we are riding on thier tails as retail traders till 11gmt when the fixes begin and price may likely reverse.
Secondly keep your risk low that is the only way you can overcome fear and greed. That is the only way you can take a loss and reverse your position immediately in order to follow the market without thinking about the loss and being afraid to reenter a trade.
Finally what makes you a successful trader is not your wins but how you handle the losses when the come.
Good Night and God Bless.
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