Forex - Why I Don’t Trade
I have had a few emails this week from people asking why I don’t trade during these market conditions. They figure that with the massive volatility that big movements can get my quick profits. The short answer is: you are right. I COULD get quick profits. History proves that when there are people making a quick profit, there are thousands losing their shirts. There is a reason most Forex traders blow out their accounts within a year. To me, the logic is similar to swimming during a massive storm. You could do it and it could be fun - but your ass also has a good chance of dying! I have decided that I enjoy reasonably stress free trading. I will still lose some trades, but they don’t hurt me too much because my win/loss ratio is pretty good. If I stray from what I know works for me then I am not trading, I am gambling. I have no desire to gamble with my money. I would rather make $100 with skill than $500 with blind luck. The market is big and I can’t even hope to make a dent in it. I cannot try to fight the waves or create my own waves. The waves are made by major financial institutions. I can only hope to ride the waves they create. I understand my place in this market and have no delusions. Just because you spend a year winning most of your trades doesn’t make you invincible. And if that isn’t enough: the spread is high during these market conditions. That means the difference between the actual price and the price I pay is high. It would be like buying a house when the mortgage company is advertising a massively high interest rate for the month. Why would I spend more to make the same trade I did a week ago? Patience. I am not going anywhere. I will wait out the storm. It just might save my trading life.
Tags: Forex & Money, Forex blog, forex day trade, Forex strategy
Man, you have changed!