Hello and welcome to another edition of the bulls versus the bears. If you want to keep your sanity as a forex trader, I have a simple piece of advice for you. Set your trade, forget about it and get on with life. This is my own spin on a popular strategy simply called “Set and Forget.” Basically what you’re doing is you make your trade, go chill for a bit and let the market handle the rest for you
Set and Forget has two humongous benefits. First, it helps you keep your emotions in check. You trade based on your trading plan and not like a casino gambler. Second, it allows you to live a normal life. Instead of staring at your PC screen all day over-analyzing the markets, to perfect your trading system, you can leave the house and hang out at the beach while your trade makes you money. So that by the time you get back, your profits would be nicely tucked away in your trading account.
Now how do you set your trade and forget about it?
Make More By Trading Less
That’s right. To make more money you need to trade less. There is one cold fact you need to accept. The forex market has a mind of its own. It pretty much does as it pleases. If you think you can control the market then you’ve got something else coming. The forex market doesn’t care whether you’re Bill Gates or Steve Jobs. If you try to use one of those called magic bullet trading systems to try to swing the forex market in your favor, you could end up blowing a huge hole in your trading account. Your job is to stick to your trading plan and see if your trading edge exits on the forex market. If your trading edge is present ,you set your trade and walk away.If your trading edge is not present, you still walk away. Why?Because there will always be opportunities to trade. The forex market is never static. It’s always generating new trading setups.
So What’s The Logic Behind Set and Forget?
Do not go beyond executing your trading edge unless it’s absolutely necessary. Failure to do so could set you on an emotional roller coaster and do crazy things such as overtrading, bloating your position size, Stretching your stop loss further from your entry trade,or moving your profit target further upstream for no reason. These bad habits will almost certainly blow a nuclear hole in your trading account. Why? Because you are gambling instead of trading. And you are trying to control the forex market-an absolute no no.
Let me show you a few price action illustrations about how not to get too caught up with trades.
First we see a retracement on the uptrend with the EUR/PY pair. Now most inexperienced traders would have exited the trade for just a small profit or near breakeven out of fear of losing their money. Instead of making a panicky exit, how about giving your trading plan time to work?. exiting out of fear will cause you to leave huge profits on the table. That’s why you set your trade and let the market work for you.
Let’s look at another price example
This is a classic illustration of a pin bar sell signal using the AUD/USD signal/ However, the market stalls as it get to the low of the sell signal and falls back in line with the bearish trend. Now if you can hold your nerve and not interfere with your trade, you could go short and make a nice profit. In so doing you take your profit and run based on logical trading, and not on greed and raw emotions.
That’s a wrap for ”Set Your Trade Forget About It And Get On With Life” Using Set and Forget creates positive vibes for your prosperity as a forex trader. Instead of spending the rest of your natural life analyzing market data, Set your trade, leave the house and let the market do the work for you. That’s assuming your trading edge is present on the market.
If you spend too much time hunting for trades in front of your screen, you suffer the following headaches. First you resort to emotional trading which cause you to incur numerous losses. This of course causes you lost money and valuable time which is better spent smelling the roses. Letting the market do the work for you gives you valuable peace of mind that can’t be quantified. It’s almost like taking a nap while the market rakes in the cash for you. Not to mention the fact that it improves your risk management without you spending another cent. With proper risk management you can keep all your brain cells one piece.
Til next time take care.
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