Avoid Forex Trading Like A Drunk Pygmy
Can there really be a connection made between trading Forex and drunk Pygmies? Once I explain you’ll easily see the connection. You might be unpleasantly surprised to find out 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!
Strangely enough, this is exactly what happens to a lot of Forex traders right after they place a trade in the live market. 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. But AFTER they place the trade they act as if they just chugged a gourd of the strongest palm wine around.
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 unusual hut married to a Pygmy woman.
Managing your trades based on emotion and you will undoubtedly 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 start trading on the higher time frames. Place your trade with appropriate risk and a stop loss in place… then walk away from the charts. This allows you to step away from the trade and let it develop without your emotions getting in the way. Unfortunately, most traders focus on lower time frames and end up trading like a drunk pygmy. The “hangover” they bring upon themselves is high stress, frustration, big losses and losing accounts.
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