The FOREX market is the most liquid financial market in the universe with trillions of dollars downloading day by day. This provides ample opportunity for all kinds of investors to earn as much as they want, in fact the FOREX market is the easiest medium of accruing wealth without any form of physical labor. Some folks even refer it as an electronic ATM that one can connect into to get funds at any given time of the regular business days. However as juicy as these sounds, it’s also one of the most difficult professions in the world due to the ever dynamic nature of the market.
The market is available to be accessed 24/5 with price of currencies moving up and down generating trading signals for various systems or strategy (trend, range, break-out, news, gap, swing trading). I have come to realize that most reliable trading signals generated from any form of trading system will produce a minimum of 30-40 pips. My main point is that why don’t we just take advantage of this realistic 30-40 pips and keep having those green color in our trading history while our account balance keeps getting fat and fatter.
This particular approach would work majorly for intra-day traders because obviously long term (4 hours, daily, weekly and monthly) traders will not want to be aiming such a pip amount. But in reality the fact is it’s easier to get 30-40 pips in the market if you are trading with a good strategy. Catching those home runs sometimes might look like a ‘wild goose chase’ because the market is always dynamic. The market is only in the mood to trend 20% of the time probably after major economic events, this is why we have more of range scenarios.
Fine, we keep hearing from our big mentors that we should cut our losses short and let our profits run. But the reality is how many home runs do we get from the market often? The market swings most of the time so why don’t we just capitalize on this weakness and stop looking for a million pips. Leave the home run for the big sharks, take whatever reasonable pips you can get your hands on and live the rest for them. Remember a bird at hand is worth more than a million birds in the bush. The FOREX is a deadly financial jungle, so act smart!