Only Taking Trades That You Cannot Refuse

Filed under: Learn Forex Trading |

Screen shot 2013-08-07 at 11.06.13In the popular book series Market Wizards, one of the ultra-successful traders in the book comments that he waits until there is money in the corner, and he simply goes and picks it up. This might sound like a strange comment, but there is actually a lot of wisdom contained within this simple statement for traders.

 

Recently, I have been much more picky with the trades that I have taken, and in fact, over the past three months or so, have only taken between 2-5 trades per month. For the beginner trader, this takes a lot of patience, as they want to be involved in the markets. However, I have been trading long enough now not to do this – and I am only taking the trades that literally scream at me to take them.

 

This is not exactly money in the corner that needs to be picked up, but it does significantly tips the odds in your favour. There are no certainties in trading or investing, but you can create high reward scenarios for minimal risk, and in the long term, it is this kind of scenario that will pay off handsomely.

 

So, if you are taking literally hundreds of trades per month, why not scale back a little bit and only take the trades that you have no doubt about. How many times have you been undecided about whether to take a trade or not? If you are undecided – then don’t take it! Only take the ones that you cannot refuse, not the ones that you could refuse, but you decide to take anyway. This is not money sitting in a corner; this is money that you are chasing. Don’t chase the money – let it come to you. This way, you are likely to have a much more stable equity curve.

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