Let’s say that we are riding in a moving car… “the moving price”… and we decide that we want to load it on the train to “Profitsville”. What is the destination that we want to use our ‘compass’… or set of if/then rules… to lead us to? What coordinates do we plug into our “Generally Profitable Strategy” (GPS) ?
If you said the coordinates of “Profitsville” then you are wrong! Our destination that we have to find is the rendezvous point with the train. We use our GPS to lead us to the best price/time location… Where is the best place to load our car onto the train to Profitsville? We want it to take us AND the price the right direction. If we choose our location wisely, such as at the top of a mountain. We can almost coast into the valley where “Profitsville” is.
This is one of, if not the biggest mistakes that forex traders have to fight against. They spend too much time thinking about the end result of “Profitsville” when they need to be spending their time following their rules to find the most likely time and price where they want to get on the train.
Once you are on the train, it will take you where you want to go provided that you have done your homework and have selected the right train and know what it’s most likely destination is most of the time. I have said it many times before and I will say it again…
THE HARDEST PART OF TRADING IS NOT TRADING
That is to say… The ability to sit on our hands and unhook our mouse and stay out of the market and wait to arrive at just the right price and time to enter the market based upon our compass or if/then rule set to guide us… This is where most traders fail. Patience means profit. Without it we will end up on a train to “Poorville”.
So let’s sum this all up.