If you have read the Ultimate investment: immpbile property vs. forex article, you must have been recently a bit disappointed with your trading results. Perphaps the trading approaches you used to apply are not working any more or you don’t know, what to expect.

This story is about “never changing your own plan of entering the market and leaving it and never listening to the other’s advise in case you never want to know how you trade”.

One trader bought a plastic card for 200 USD balance payment and activated it. The first idea was keeping busy all day. From the early morning the trader did nothing but opening new positions and closing them. The trader was lucky not to loose the primary investment but to keep it for one week. Yet, he earned nothing. The next week the trader observed that the price that fall by 100 – 150 returned to him with a half later on.

What the trader was doing was trading the GBP/USD pair, with the pound, tending to unexpectedly dramatically increase and decrease. The trader did no special planning, no special risk management with no placing stop orders and setting objectives for every trade. His routine was only turning his computer at 10 am and watching the dance of the currency rates changes. When the price seemed low, he bought it and when it increased, he sold.

There might be some logics in his actions, because in a result he earned something ca 1100 USD, starting with only 200 USD. He kept entering the positions when they seemed right and leaving them as they seemed to cause danger to his investments. And afterwards happened something that usually happens in such cases. As the trader went away from the PC to enjoy his cigarette and a nice chat with his friend doing the same, his account vanished. He had some ideas of leaving the position once he came back and saw only 250 USD on his account. Yet, he decided to risk and wait until the rates would be rising.

Think about it…