Page 156 - Ultimate Guide to Currency Trading

as much as your loses will trigger, the law of averages will mean that you will close out at a win three

times as often as you will close out at a loss.

The best way to stick to a trading plan is to be interested in something other than

currency trading. You might find yourself so wrapped up in the markets and Forex
Essential trading that everything seems very important. Find other ways to enjoy your time while

you are waiting for your well-thought-out FX trades to play out.

This suggestion might seem to go against logic, as it would seem to be that you would want to
set your wins to be three times your losses. If you were to follow this plan, it would take three times

the movement to finally close out the trade with a win in your pocket. At the same time you would be

booking losses three times as often as you would be booking wins. You must remember that a win is
not truly a win until it is realized. In other words, a win is not truly yours until the trade closes out and

the profit posts to your account. On the other hand, a loss is only a loss when the trade is actually
closed out and the loss posts to your account.

If you find yourself in the situation that your trade is standing still—or worse yet, losing—then
you have to make the decision to close out the trade or wait until it corrects. Since currency pairs have

a pattern of moving back and forth, it could quite possibly be true that your stagnant or losing trade
will soon rotate to a winning trade. Often this happens when you are not looking at your account, or

otherwise not monitoring your position. With the use of properly placed take-profit and stop-loss
points, you can build your trade to withstand downturns and still be ready to capture the gains when

the time comes that your Forex trade turns around.