Forex Trading: Sequence In Trade Part 1

Posted by Finance Professional on December 29, 2010 under Forex Market News | Be the First to Comment

Danger of inconsistency

The principle “to stop and start to trade in a new fashion” doesn’t work. When you trade any method or system some time and then stop and start to trade other method or system, then come back and then begin again with other method, you lose the probabilities peculiar to certain system or a method. Precisely also, when you trade and then don’t trade or choose signals of a certain method. You destroy probabilities. The market doesn’t change the rules every day or week. The market allows working to probabilities through any time.

One trader has sent me the following message:
“I break own rules. My relation to trade worsens. I want to return to trade on the educational account for some time to return to a track and to prove to myself that my methods work and to return to a confidence. What do you think about it?”

If your methods don’t work, or you have doubts concerning them, you shouldn’t trade these methods. It contradicts common sense. Before starting to trade any method, vital to check up that it works. Also it is important to solve for yourself in advance, what conditions should occur to stop trade. You should test double historical recession? You should be in loss during the certain period of time? Or certain factors of the market environment should change? Solve all it in advance.

To begin and cease to trade doesn’t work. And still it is typical enough thing which is done by the trader. Traders often start to trade any method, lose a little or much, and stop, then try to create or find something the best. Then they will trade a new method, or an advanced method, for the present time won’t lose, and they will stop and will repeat process again. Again and again, many times. It deforms probabilities. A previous method will be frequent to die only when they stop. The new method will start to lose only when they begin. The sequence is important.

For this reason I offer those who like to research continuously even when they trade that they entered changes in the beginning of month. This way they will infinitely not trade yesterday’s transactions. For example, if last time you have allowed your profit to grow and subsequently have lost it, this time you grasp the profit quickly only to observe, how it grows without you. The sequence is a unique method to be arranged under probabilities.

As to trade on educational accounts there are two conditions for which as I believe, it is desirable to do. Trade on the educational account when you study a method. Trade on the educational account when you prove a method. Cease to trade on the educational account when both conditions are satisfied.

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