BASKETBALL AND FOREX


We can learn a lot about how we should strategize in forex from basketball. In basketball if a player misses a shot, the team doesn't sit down, close their eyes and ears, while the other team is still playing; hoping that the game is going to come back in their favor. If a coach told you that was his strategy, you'd say that was ludicrous. Yet in forex a trader will put in a bad trade, turn off the computer, leaving the mistake to grow bigger, hoping that things will come back in his/her favor.

Good trading doesn't work like that, you have to practice good defense, you have to protect yourself!!

Everyday in forex you have an opponent and you must use your defense if you are going to be consistently profitable.

In basketball if your point guard has an injury that is keeping him from scoring, you cut that player and use the back-up point guard. In forex You must do the same thing. When your primary plan fails, you MUST cut that position and use a back-up plan..

Many times as traders we take a hit and quit. If you have a good strategy, you can keep playing until you are ahead of the game.

Two things you must remember to get into the big leagues. #1 CUT BAD TRADES QUICKLY #2 DON'T OVER-TRADE YOUR ACCOUNT. When I say don't over-trade, I mean if you have $1000.00 account don't trade a half of a lot.

If you have a $100.00 account and you trade 1 micro lot (.10) you can grow that by $5.00/day. Everyday that You reach your goal you can add 2 more pennies, which will give you an extra dollar everyday on 50pips. At that end of the 1st week, you will have $35.00, $75.00 the 2nd, and if you stop at that (.30), you can make an additional $150.00 for the month, for a total of $260.00 the 1st month; which is more than double what you started out with. The 2nd month you'd have $300.00, that is an additional $3560.00 for the year if you add .02/day to .10 and stopped at .30 and stayed there the rest of the trading year.

Remember forex is a get rich slow game, so don't over-trade your account.

Use discipline with a good strategy. Most importantly CUT BAD TRADES QUICKLY, because the best strategy in the world is no match for a free running loss!

NEVER LET THEM TRAP YOU!!!!!!!!!!!!!!!!!!

CUT BAD TRADES QUICKLY!!!!!!!!!!!!!!!!!



If you take a hit, don't sit down and quit hoping the other team is going to have mercy and let you win. They are your opponent, they are not your babysitters, they are out to beat you. You have to stay in the game, practice good defense, and protect yourself if you are going to come out ahead!!!!!


You can do this(^_^)!!!








8 comments:

  1. I have read this blog that it has full information about the forex Its helps the currency exchange business and forex trading users get the best from Forex market.

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  2. Well said!
    Cheers!
    P.R.

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  3. Thanks Guys, If there was anything that I wish I could teach every trader, it would be that a loss is no big deal because the market is very generous and will continue handing out paper.

    And if You cut a bad trade quickly it is much easier to recover and surpass, than if You let it ride...

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  4. Nice Information! I personally really appreciate your article. This is a great website. I will make sure that I stop back again!.

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    Replies
    1. Thank You, if you place it in your bookmark, it will be easier to find it whenever you'd like, but if not, just google Trader's Friend and it will come up (^_^)

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  5. where are you Traders friend....

    ReplyDelete