YOU'RE IN...Watching the forex market movement especially the major pairs are not for the faint of heart. When you are not in, it is a pleasure and wonders to watch these prices volatility, how the bulls and the bears are fighting each other.
But once you're in, you know there will be 2 conditions especially if you're an intraday trader or scalper.
1. Hit and run when you got it right. Typically 10 to 15 pips per trade, sometimes even smaller.
2. Hit and quit if you get it wrong. At times, you might hang on to a losing battle.
I must admit that this is one of the reason why I chose forex market over the others. It is the biggest financial market in the world (over USD3T per day!) and yes, it is high risk, but only if you put in so much at one time looking for a home run. If you play it dilligently and patiently, it is quite fun & I guess the pressure is off. All you need is patience to strike at the right moment.
The important thing is not to argue with the market. They are always right. So, admit when you're wrong and execute the escape plan before you're trap. That's my style, at least. Careful with the news time as well since news have always bring short term volatility that could hurt you. The data is not as important as the time of released since it is how the market response that really matters.
The way I look at it, good positioning is always the key regardless of how much you are putting at risk. Even if you risk it small but then getting it wrong all the time doesn't give you the edge in making good money in this market.
The rule here is not to be average since most (if not all) average traders lost money. Perfecting the timing and recognizing a high probability trade are the elements that traders need to master.
One more thing, I am training myself NOT TO TRADE instead of making it a routine to trade everyday. At times, I feel so obsessed with trading that my performance in catching the pips starts to deteriorate slowly. Making 150 pips in the beginning but later gave back 100 pips before the New York session close.
When poor performance starts becoming a streak, I guess the best thing to do is to backoff and stay away from the market for a while, well at least watch the market without doing anything.
This is called a self discipline.
Happy trading guys!
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