Forex Pip Machine

You’ve heard it happening to forex traders many times before. Heck, it probably happens to you when you trade your live account. You place a trade because you got a signal such as a spike high candle in your trading station. You quickly place the trade and set your stop loss. The price then starts going against you. You were certain that the price was going to reverse because of the last candle being a spike high and all. You are trading a system that has been recommended by reliable sources and that has yielded winners in the past. The price keeps retracing back even more on its way to the stop loss. You then panic and pull out of the trade with some negative pips.
Have you ever done that? I know I have. It’s the all too familiar feeling of fear: the fear of losing the trade.

The Best Forex Trading Advice

The act of placing a forex trade should be a very unemotional and mechanical act. The first thing that has to be established is that:
A) Your trading system has a proven success rate of at least 70%. This is the percentage of winning trades.
B) You are well skilled in implementing the trading system accurately: you recognize the setups, and the signals.

Once the above criteria is met, the following mindset has to be adopted when placing the trade:

“I don’t know and can’t ever predict where the price will eventually go, or if I will ever reach my target. All I can do is trade the system and not care weather I get stopped out. I’ve managed my risk per trade so that eventually the winners will well over-ride the losers”

If you try to trade by trying to predict the market, you end up chasing the market. If your system has a 70% success rate, you should simply trust that on the long term and at the end of the month, you will be in the black with gains. Risk management is really the key to successful trading. If you only risk between 2 to 3 percent of your account on every trade, then you can weather the losses and let your winners run.
If you have a problem with losing say 4 trades in a row, even after implementing the system correctly, then maybe you shouldn’t be trading the forex market because you will lose trades. You simply have to learn how to lose or let go of your attachment to “that one trade”. Let the system do the work.