Late, Wrong or On time? How Do You Take Your Positions?

Category: Forex Market Analysis and Signals | Tuesday, January 12th, 2010

The below tip of the day is from one of the experiences we had last day on the members area. I share it with you now:

(August 17, 2009) Friday candlesticks had formed a very strong sell signal with several currency pairs including NZD-USD which was the best one, but unfortunately market was opened on Sunday afternoon with a big gap almost in all of the pairs that had already formed the signals.

Usually when market opens with a gap, it is used to go against the gap direction and fill it because those who already had a position from the last week, when they see they are in a big profit because of the gap, they get overwhelmed and close their positions to collect their profit and so price goes to the other direction. But last night it didn’t fill the gap and kept on going down. In these cases I just call it bad luck and then forget about it and wait for another trade. I never enter if I am late. If I can enter on time and with the price that I should enter, I do it, otherwise I ignore the trade. This is a very important aspect of discipline that a trader should have. Our greed pushes us to enter even when it is late but we should prevent it. I know it is a pain to see a good and a strong signal runs away from you while you are not on board, but this is part of the game too. We can not catch all the movements.

I read somewhere that a trader said he preferred to be late than wrong. But I think being late can sometimes be as risky as being wrong. So I prefer to be right and on time than wrong or late.

Maybe many of you, have been trying forex for several months or even a few or few years but have not been profitable so far. You make some profit every now and then and lose it with some bad trades. Let me share a million dollar secret now. It is the right time to do it.

You will become profitable only when you become able to control your greed. You should be able to ignore some positions and signal that don’t look good and strong or you are late and it is not safe to enter. If you review your memory, you will see that most of the bad positions you have taken are because you have not picked a strong signal or because you had missed a strong signal but you pushed yourself to enter and make some profit and get out. But they went against you right after you entered. Maybe they have been waiting for you to enter to change their direction. Sometimes it really looks like that a position has been waiting for you to enter and right when you clicked on buy or sell button, it changed its direction. It is because you are late or you have picked a poor signal.

Being late or picking a poor signal is because of nothing but greed. You can not ignore the money that it may make for you. So you take it. When it comes to trading, everybody is greedy. This is normal. Everybody likes to work less and make more. I knew myself as someone who could be everything but greedy. But when I started trading, I discovered my greed. It showed up. It is hard to know it first. You have no idea. It pushes and controls you but you don’t feel it. You are not aware of its presence. You will become a profitable trader only when you know it and you become able to control it.

That is why I placed that $1000 scheme on the site. I just wanted to open your eyes and help you see the bigger picture. Start from a $1000 account, be happy with 25% per month and be patient for 24 months. Then withdraw $53,000 per month!!!

But maybe you have been trying to triple your account every week or every month and that’s why you have not been profitable so far. Please think about it.

  • USD:
    Trade Balance 08:30am EST
  • GBP:
  • Trade Balance 4:30am EST

will be added shortly.



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4 Comments:
post a comment
Comment by Judy Clement
2010-01-13 19:34:33

Hi, Thanks for your wonderful newsletter for the past year. am happy for that most especially the one that featured Late, Wrong, or On time…..How to open position i hope that many a trader will benefit from that! keep it up.
There were three sentences there that puzzled me which i wants to create and stick on my chart as a TEMPLATE but i dont know how to go about it, although i know that am not doing the right thing by asking much of u anyway but please help me out
I want the two sentences to be displayed at the top of every chart of mine so that it will serve as a nice reminder for me against bad trades coz the sentence said exactly what i was doing wrong and i really believed that by having the sentence stick to my live charts will help me greatly, i know that i might sound kidding but please help me by showing me how to write the following text as a template

You will become profitable only when you become able to control your greed. You should be able to ignore some positions and signal that don’t look good and strong or you are late and it is not safe to enter

Jonathan dc

Reply to this comment
Comment by Vahid
2010-01-13 19:48:11

Hi Judy,

If you use MT4, you have to insert the below code to the chart template or in one of the indicators MQ4 code:

Comment(”ENTER YOUR SENTENCE HERE”);

Reply to this comment
Comment by Judy Clement
2010-01-13 20:25:05

Thanks for the fast response, but it was very difficult for me to write haha what a dried head coz am not a programmer, please please can u through more light on that? where and how do i put the code? sorry for disturbing you much

Reply to this comment
Comment by Vahid
2010-01-13 21:52:14

So you can simply put a text on your charts. It is very simple and all of the trading platform let you do that. Just look for the text icon on the the toolbars.

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