Your only job as a trader is to figure out where the majority of the trading flow will go and join the move as soon as possible.
On the face of it this observation seems obvious, yet in reality the majority of the traders typically do the opposite. They always try to fight the tape trying to prove to the market that they are “right”. Typically traders want to buy bottoms and sell tops. This is a very human inclination: we hate to pay up for things. We want to buy something cheap and sell it higher. For evidence one only needs to see the weekly SSI index which consistently shows traders fighting the trend as they futilely try to pick tops and bottoms.
But in trading this is a very dangerous strategy: the most intelligent thing to do is often the hardest: to go with the flow. Novice traders usually don’t want to chase price but in fact going long (or short) could be, at that moment, a much more intelligent strategy than going short (or long for that matter) and set the stops properly. If your idea is wrong you will know quite quickly you are wrong. You want to go with strength but the moment strength leaves you, you need to leave the trade and that requires discipline.
Rudy – Professional Forex Trading Mentor
+27 82 926 6855
wipe out your fear, failure is not an option
Subscribe to our Newsletter
To receive frequent updates to our courses, blogs & FOREX insight from our Forex Wizards