What if you heard a well known forex trainer promote the practice of “adding to losing trades”? Would you believe him?
Or what if he said it is ok to trade “without stops”? Would you do that?
Or what if a trainer from a well known IB (Introducing Broker) said this to you.
“You need to get comfortable with a 1,000 pip drawdown trading our strategy’. Would you accept what he said?
Or would you say: WTF!! ( What the Forex) 😉
Wait a minute…did you really say you want me to get comfortable with being in a 1,000 pip drawdown as an at home retail level trader? Are you kidding me? That would be devastating to my trading account.
Add to my losing trades? Why would I do that? Is that going to make the pain of a big loss go away? No. It won’t.
One of the greatest traders of all times, Paul Tudor Jones, had this to say about adding to losing trades, “losers average losers”.
Yep, losers do that with their losing trades. They add to them.
Trade without stops? It is downright deadly. I know. I used to do it and I had to bear the painful consequences. It is arrogant, selfish and reckless.
At the Price Action Traders Institute (PATI) forex trading is very simple and very clear.
1. We trade with 8-12 pip stops always. Always.
2. We never add to losing positions. We only add to winners.
3. And we would never be comfortable with a 1,000 pip drawdown…never!
4. Best of all…we don’t use any mind numbing, uber confusing indicators of any kind…we use Price.
Who are you listening to? Question what any forex trainer says to you. Question me. Send me an email. I will be very clear and direct with you about trading.