Riding a horse can be fabulous experience… as long as you know who’s doing the leading. If you’re the one who’s determining the direction the horse is going and actually like the destination, then by all means, ride on. If not, it’s time to get off that horse even if it means jumping off before it starts to gallop away and take you to places you just don’t feel like visiting.
The same is true for Forex trading where a lot of traders seem to like riding to places they just don’t want to go and don’t realize that it’s time they got off the horse. I’m talking about Loss Riders, the worse kind of Forex Cowboys there ever was.
Loss Riders simply can’t ever give up. They stay in the saddle no matter what. Even if a trade has gone out of their control and is now cantering away deeper into the red, they stay on, determined to change the tide. More often then not, they’ve lost control of their steed and they’re going to end up losing more. In addition, all that time spent on a losing trade could have been used to find another, a more profitable one.
It’s time you make a decision: what kind of Cowboy do you wish to be? Which Forex Horses do you want to ride?
Losses are horses that should be abandoned (jumped off from) before they start to gallop away. There are finer horses awaiting you, those that will take you where you wish to go. Don’t be a Forex Loss Rider. This is what Stop Loss prices are for, to allow you to disembark from the saddle without having to hurt yourself too much. Cutting your losses short is a basic rule of successful trading. So a Loss Rider is not the kind of Cowboy you wish to be.
What you should be riding are your winners. These take you where you want to go, to a greater profit. However, they will not be doing so indefinitely since every horse has its limits and ends up tired. Don’t be the kind of Cowboy who pushes their horses to exhaustion or until they decide to rebel. You’ll only be making your profits lower.
Always make sure to have an exit strategy for your profits so that you:
a. Never end up without some kind of profit.
b. Know in advance when enough is enough.
Always know that you don’t need to fall in love with any trade. As a Cowboy, you’ll always be able to find new horses to ride on.
Outstanding,,,thanks