In forex traders get into trouble because they have the wrong mentality. They trade the "cling and hold method" and it gets them killed in the market. Trading is a "Catch and Release" game. Only hold a trade as long as it benefits you, if you catch the wrong trade, kill it like a rattle snake and start over.
Most traders hold to bad trades for dear life in spite of the danger
This is the wrong way to trade, if it can kill your account, let it go and look for a better trade. (Write this somewhere that you can see it while you are trading (KILL IT BEFORE IT KILLS YOU). Only take the trades that you truly want. That means only investing your hard-earned capital in a trade that is going to reward your patience and hard work. If it is a trick trade, simple cut it and follow market strength. The sooner you cut it, the quicker you can recover and be on your way to profit.
This is what most traders don't understand about the market, you only keep what you want and discard what you don't. Trading is a catch release game............................. It is like going fishing for a Big Mouth Bass and finding a Water Moccasin on the other end of your fishing line; the smart fisherman would release that killer immediately. Trading is the same way, if you catch a Big Mouth Bass, Salmon, Tuna, or Catfish, keep it. It will feed you, but if you catch a shark, snake or sting ray, throw it back; it can kill you, and the longer you keep it, the more deadly it becomes.
Anyone can get in on the right side of the trade, but only pros understand the great advantage in cutting the line (a bad trade quickly) if there is poison on the other end. Most traders let the snake bit into them and hold on hoping that the poison will not kill them. That is just dumb, I know because I have done it a million and one times and that thinking killed me over and over again in the market.
Cutting a bad trade quickly keeps you in control and puts the power and responsibility for your trading into your own hands, instead of leaving you hopelessly at the hands of a merciless market. The market will either feed you or feed off of you.
Letting go of bad trades gives you the power to follow market strength into profit and build wealth. Don't worry about taking small hits in the market, it is ok, there have been days that I have taken several hits and started the day off pretty deep in the red, but by the days end I was far ahead. There are days that I have ended slightly behind, but I felt good about those days because I was trading(catching and releasing), releasing the poison. Every trade will not be profitable and not every trade will be a home run, but there are the big reward times that the market will open her store house of the sweetest treasures; that is what you are saving, building and preserving your capitol for - those sweet days.
The biggest accomplishment in my trading is letting go of bad trades quickly. It took me forever to fully comprehend the wealth building power at my disposal just from that one little secret alone. Cling to the good, but discard the bad quickly. Slow movement on your part could be deadly to your account.
Don't be afraid to let go, the wealth is there when you have the power to follow it, and it will reward your consistent discipline with a better lifestyle......
