Learn Forex – Hoping, Wishing, and Praying in Forex Trading
Learn Forex (FXpath.com) – Many traders in the forex market (and any speculative financial market, for that matter) often find themselves in the unenviable position of hoping, wishing (and sometimes praying) that a particular trade will go their way. Usually, this occurs when a trade has gone horribly wrong and the trader refuses to let go. Needless to say, more often than not, hoping, wishing, and praying just don’t work when trading forex.The one thing they do accomplish, however, is to make the act of trading unnecessarily stressful and frustrating. As forex traders, we must remind ourselves that the market is full of unknowns and we just cannot control price direction, movement, or volatility, however much we may wish to. Each currency pair will go where it needs to go, when it needs to go, and how it needs to get there. And there’s not one thing we can do about it, except for read the market to the best of our abilities and react to it in an intelligent manner.
The most significant way in which we can read and react intelligently is much more than just working on a high-probability trading strategy. More importantly, it is to work tirelessly on our risk/money management approach. A big part of this is admitting early on when we are wrong, and then moving swiftly on to the next high-probability opportunity, without any emotional baggage from previous trades. There is absolutely no room for inflated egos in successful forex trading. Nor will hoping, wishing, and praying ever accomplish anything better in our forex trading than merely graying our hairs, wrinkling our brows, and keeping us awake at night (if the Asian trading session isn’t already doing so).
James Chen, CTA, CMT (bio)
- Click here for my book, Essentials of Foreign Exchange Trading (Wiley).
- Click here for my book, Essentials of Technical Analysis for Financial Markets (Wiley).
- Click here for my video DVD set, High-Probability Trend Following in the Forex Market (FXstreet).
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Comments
The best use of prayer in the forex mkt is most likely praying that you make non-opinionated and un-biased decisions in trading. Pray that you can focus clearly on the mkt and do what the market tells you to do. Once you take the plunge and enter you’re at the mercy of the mkt forces and don’t have much control other than holding on or bailing out.
Excellent article as always … but I think praying sometimes works