Forex Trading Lab

Drunk pygmies and trading Forex, what is the connection?  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 climbing 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 take place 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 calm, cool and collected and make decisions rationally based on the trading system they are following.   But AFTER they place the trade they act as if they just chugged a gourd of the strongest palm wine around.

Instead of thinking clearly and managing the trade without emotion, many traders lose their minds once real money is at stake.  They start making decisions based on fear and greed.  They start closing their trades at the first sign of loss OR profit.  Ultimately, they throw their Forex trading plan away and basically act a fool.

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 undoubtedly lose your hard earned money or turn a profitable trading system into a loser.  I’ll leave it to you to 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.

If you join Forex Insider Pips for free, I’ll give you one of my own Trade Management Robots.  I’ll also teach you a process you need to go through to become a successful trader in a video series.  Most of what you’ve discovered about trading Forex is misleading a will have you trading like a Pygmy after a wild party.  Sober up and follow the lead of someone who trades successfully, and know what it takes to be successful in this serious business.