Hi Guys,
This is just a quick note on trading. I wrote this in answer to a question a newbie emailed me.
Don’t put all your eggs in one basket. That and a million other clichés can be applied to your trading. While most of them are pretty useless this is one of the rare clichés that helps.
It is no secret that when it comes to trading newbie’s waste a lot of time looking for a trading system. When they find a system that works they get all excited and think their prayers have been answered. Two months down the track the system stops working and the newbie has to start looking all over again.
It is also no secret why this happens. Market conditions change, what worked today won’t always work tomorrow. It is the nature of the market, it is too fluid to be contained by a simple system. So what do pro trader do to keep making pips in an ever changing market?
Well it is easy…. We don’t put all our eggs in one basket. Take a look at my method for example. My method is not based on one type of analysis it is based on three:
– Scalp lines
– Constant lines
– Reversal patterns
Right now constant lines and reversal patterns are working very well. Scalp lines are not working as well. Nine months ago scalp lines made me plenty of pips while constant lines where useless. In twelve months what works will probably change again. This is because Forex market conditions are always changing. So there is a lesson to be learnt here.
Like the Forex market you need to be fluid. You can’t just use a single for of analysis otherwise as soon as market conditions change your profits dry up.
Lobo
Nick: As always, excellent advise, Thank’s
dan cahill
CRACKER.. Nick.. SO very true.. Thanks..
joshua bulus kwaghe
Thanks for your advice on why one should not place hope 100% in only single way of analysjng the market. I had before this thought the other way round. Again THANKS and may God continue to bless you abundantly.
shaun
Thanks.
Curtis
Great advice for not only the market of forex but perhaps how you should handle life. If you can’t change and adapt to the ever changing times we live in you will go the way of the dinosaur.
One observation for all to ponder is what game plan do you use for forex and how do you know you are using the right plan at the right time?
(Any comments)
Art
Is 12 months of consistent profits enough to say you’re able to change with market conditions of the forex market?
Pbw
Nick, I have not been having success with reversal candles as much. Would you be able to give some more attention in this area. Perhaps a weekly report on where you found them and how they turned out –profit or loss– and better still –some advance notice of possible reversal patterns starting to form.
Roberto
Excellent advise Nick.
But the problem is that newbies like me are not able to recognize that market condition changed.
The charts looks the same to us every day. Do you understand?
Art
Nevermind to my question.
kibed83
Great read & thanks for sharing