Forex Pip Machine

Many forex traders when on a winning streak feel like they have to keep trading so as to “keep the streak alive”. And when they start to get a string of losing trades, they walk away from the table feeling a bit demoralized and beaten, with feelings of loss. These are the effects of greed and fear in a nutshell.

The inexperienced trader usually commits the mistakes of overtrading, or quickly opening forex trades as soon as he or she wins or loses. A good tip for traders is to wait at least an hour or two after winning a trade or taking pips.

Also, after losing a trade, it’s good to look for another trade opportunity until you hit your target. The key to this attitude is that you are adhering to your risk and money management guidelines. Never risk more than 2% of your account in one trade, which means you need to set your stop loss to that and be strict about it.

The reason to not stop trading when you get a losing streak is that if you quit for the day, you will have missed the winning opportunities available during the time that you didn’t trade. In other words, don’t freak out. A couple of winning trades will recoup the losses of the stopped out trades achieve a gain.
The trader’s success will be dependent on these factors.

A)    Your trading system must have at least a 70% trade success rate.
B)    You have to know the system inside out and be able to successfully use it.
C)    Risk and money management has to be IMPECCABLE!
D)    You must be in control of your emotions and trade in a completely cold and scientific way.

Also, remember to commit to your trade once you have decided that the entry signals were valid and the probabilities are the highest. If it goes against you, trade again after you find another set up and entry signal.

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