Are You Trading Forex Like A Drunk Pygmy?

Are You Trading Forex Like A Drunk Pygmy?

Drunk pygmies and trading Forex, what is the connection? Well, give me just a second and I'll explain. Be honest with yourself and you just might find that you are trading like a drunk Pygmy.

When I was in college I took an Anthropology class. (I also took "Rocks For Jocks" and Greek Mythology in case you were wondering). My professor spent two years living with Pygmies and taught us all about the use of Palm wine in Pygmy culture.

You see, alcohol is a part of Pygmy society. They make Palm Wine by ascending palm trees, making slits in the trunk and gathering the sap, which they later ferment. (From what my professor said, this results in an utterly nasty liquor that when abused has you sleeping in the nearest hut tangled in mosquito netting!) The Pygmies use this alcoholic beverage for rituals, festivals and other forms of "parties".

Imagine waking up in the hut of a strange Pygmy woman after getting drunk on Palm wine. This just goes to show you what can occur if you don't keep your wits about you while drinking palm wine. No doubt, imbibing this strong liquor can make you do things you wouldn't normally do, and that you'll regret later! This is very similar to what happens to Forex traders after they place a trade when real money is on the line.

Before the trader places the trade they are "sober as a judge". They are thinking clearly and making decisions based on all their experience and the trading rules they are following. However, right after placing the trade it is like they just drank too much palm wine and lost all sense of reason.

After placing the trade it needs to be managed without emotion. However, many traders lose their minds once they see real money is at risk. They start make snap decisions based on emotions like fear and greed.This leads to closing trade early if they start to lose or if they go into profit.These poor decisions mean they are throwing their Forex trading plan away and forfeit any chance of being a successful trader.

Drink too much palm wine and you can find yourself waking up in a strange hut married to a Pygmy woman. Managing your trades based on emotion and you will surely lose your hard earned money or turn a successful trading system into a loser. (You can decide which is worse).

An easy way to control your emotions once you are in a trade is to AUTOMATE your exit strategy. Once you place the trade manually with you entry and initial stop loss, you can use an EA to manage the trade from there.This allows you to step away from the trade and let it develop without your emotions getting in the way.Unfortunately, most traders don't use an automated exit strategy and end up trading like a drunk pygmy.

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