Wednesday, June 9, 2010

Forex Like Sex .. !!!

I maintain that forex trading is kind of like sex. I apologize if this is a bit risqué for you, and you may want to leave if it is. I'm not make it all tawdry here, but I want to draw a few examples to make some forex principles clear.

When it comes to sex, most people are focused on the end -- the climax. This is of course all backwards as the whole experience is to be enjoyed and savored. It's very similar in forex. Most forex traders are trading with some ultimate target in mind. It might be making $1 million, or it might be making enough to live on, or it might be just having a profitable year, etc.

Now not saying that you need to savor the experience of every forex trade. That's not the point here. The point of trying to make is if you don't focus on the minutia, then you won't ever get to your end goal.

This is because the devil is in the details when it comes to forex trading. It's all the small things like where do you place the stop, do you even use a stop, where you place your take profit, will it reach that Fibonacci level, should I take this trade with the pending news release, etc.

The point I'm trying to drive home here is not to get too farsighted or "big picture" in your view. Each trade is very important; each exit is very important.

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