Forex Survival Guide for Serious Traders

Do you approach Forex trading like a 1930’s gangsta, offloading his tommy gun into his rival’s favourite
hangout?

A massive problem with Forex traders is they take on more than they can handle by opening too many
trades at a time. It’s this ‘spray and pray’ mentality where a trader opens an unmanageable amount
of trades with the hope some of them work out, and turn a good profit.
‘Hope’ is not a valid trading strategy by the way…
The logic trap here is that most of the currency movements are correlated. So if a group of trades are
taken around the same time, and the market moves against you, then all your trades will probably all
fail at once.
This is the typical “shoot first and think later” kind of trading.
Taking on too many trades at one time makes things unmanageable, messy and can be very mentally
taxing. On occasions I’ve seen some ‘cowboy traders’ open up to50 trades at once. I mean that’s just
ridiculous.
I have been guilty in the past of having too many trades open, and I know you have too. When things
go wrong, you feel like you’re aboard the Titanic when it’s taking on water. There aren’t any lifeboats
left and you’re already feeling those ice chilling waters.
This is why I adopted the policy of “Only one trade at a time”