Forex and the Holy Grail

This is the one phrase in trading that really annoys me, ‘The Holy Grail’, but closely followed by ‘left pips on the table’ – who made those beauties up?

It is mentioned in many places that trading is very easy..!! I suppose the actual physical act of placing a trade is easy peasy and anyone can do it, anyone can click the mouse and enter a trade that’s for sure. But to show a profit on the majority of those clicks of the mouse is not so easy peasy, that is also for sure. Because if it was then everyone would conceivably be as rich as Croesus. So why is it so difficult?

One of our members mentioned to me a while ago now that he had heard something on another site where someone said, “Trading isn’t rocket science – it’s harder!”

Now, if you want to put a beginner off starting their trading journey that is what you should be telling them. Hardly words of encouragement are they? The thing is, the markets go up and they go down which clearly isn’t rocket science in my book but mostsimple2 traders make something very complicated out of something dead simple. I say, “Trading is as hard as you want to make it.” Just watch as many many traders start adding this, that, and t’other indicator to their charts in the belief that if it isn’t complicated then it won’t work. If those indicators haven’t worked for a million traders what makes you think they will work for you? I see it every day and all I can do is shake my head as they continue to make it more difficult for themselves. There is only one way, you have GOT TO keep it as simple as possible. For me, this is the Holy Grail.

Even Einstein said it and we can’t argue with the genius.

It’s time for me to have another bash at those who insist on making trading more difficult than it really is, those who drag all the useless ‘baggage’ from other systems and methodologies. If it didn’t work there what makes you think it will work here? Get rid of all those bad habits from previous losing systems, but more importantly get rid of those damn indicators especially those that seem to re-surface occasionally in our trading room. Unlearn the crap.

Just for once try a system without the crap, trade the rules, and see how you do. But give it time with a series of trades. Give it your utmost, as you should do anyway, and use good trade management following our double-edged sword of Patience and Discipline – then see what the Black Dogs can do for you. You just may be surprised.

I tend to do the opposite of what most traders do because most traders are losing.

If you do what everyone else does: you’ll get what every one else gets.

I had a normal days trading today and managed 26 pips in a market that was not wholly brilliant by any stretch of the imagination BUT I also managed to break the rules of patience and discipline on one occasion. I anticipated the market and it hit me with a small loss. Only seven pips but I’ll learn eventually and it could have been avoided. The point I’m trying to make is that the hard part of trading is in your head, not in the system you are using. Getting a couple of indicators onto your charts and listing a few rules is the easy part of trading and people do it every five minutes. The hard part is sticking to those rules, the weak link of any system is the trader.wekestlink It follows then that this is the part of trading where most of the work should be focused when aspiring to make a few pennies in the markets.

For me then this is the Holy Grail that everyone talks about. Most think that it is an indicator or system or way of trading – maybe, but I don’t think so. I proved today (to myself at least) that breaking the rules is costly. How many more times do I have to prove it to myself? Bill, in our Trading Room, rattles on like a broken record about Patience and Discipline – I should take heed. The Holy Grail is in your head, mine is listed below:

  • Trade the system as described
  • Trade it to the rules and stick to those rules
  • Have the Patience to wait for the correct set ups
  • Have the Discipline to carry out your trade management
  • Conquer the greed aspect that turns winners into losers
  • Over-confidence can lead to ignoring all of the above after a string of winners
  • A string of losers must be the fault of the system….. REALLY?   FEAR
  • Trade with STRICT trade management rules
  • Do not form opinions on what the market will do next (Read #1 above)

I’m pretty sure that we are all amateurs here, I certainly am though I trade full time.  We trade for ourselves but what is to stop us trading like the professionals? We can try to emulate them and hopefully put a few pennies into our trading account on a regular basis. So what else can we do to improve our trading and close the gap between the amateurs and the professionals?

  • Amateurs think that they can win almost every trade – professionals KNOW they can’t
  • Amateurs move onto another system after three or four losers in a row – professionals know it is simply the state of the market
  • Amateurs aim for home runs, 100 pips every trade – professionals simply trade their system
  • Amateurs let losers run – professionals close them quickly
  • Amateurs will remain amateurs if they continue with the above

It hit me fairly quickly that my amateurish mindset was the reason for my early account implosions. I just wasn’t taking it seriously enough. No plan, no nothing. Without considering those points above you will lose and that is a given. The professionals are completely aware of them.

Professionals do not get buried under a myriad of indicators, methods, chart patterns, pairs, or time frames – nor in the endless analysis of such. They have their few rules that they trade and that is it. Make it easy, make it simple, keep it simple. A winning simple system traded over and over to the point of monotony – all the way to the bank – with VERY strict trade management.

NOW we are talking professional…!

One day I would like to be able to reply when asked what I do for a living, “I am a professional trader.” It may happen but for the foreseeable future I am simply a trader.


Here’s a post from our old forum by a happy and ‘patient’ member…

Hi Dave

Finally today I know in my mind that I have turned a really big corner in myself. After nearly 2 years of losing and practicing with a “losers mindset” – I can see the fruits of my MTF2 BD rules.

What really did it for me after trading MTF2 for just over a week and BDB since beginning of January was looking back over the past few days charts and saying “what would I have done?”

I realised just how simply I can extract 20-30 pips a day with just one thing – PATIENCE.

It was after I spoke to you I realised that I was looking at my indicators but was not ACTUALLY looking at the price. For me, (and since our Skype session) – I start off looking at any chart by looking at the LTM – I then look at the price, dogs, ses, 50s etc. I didn’t make many hundreds today; I am NOT overjoyed that I made some money – but I AM VERY VERY HAPPY that by following my rules and waiting for “my perfect entries” – I was able to take profit easily and enjoy it. I was also able to know EXACTLY what I would do at any stage if it reversed on me.

Its thanks to your good self and the BD community that I feel I am now walking on the right path.

The main picture shows the North Yorkshire Moors Railway which runs from Pickering to Whitby

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