There is this saying on Wall Street, “Pigs get slaughtered.” You may have heard of popular terms such as bulls and bears, but have your heard of pigs? Pigs are the indecisive traders who can’t make a profit in either direction of the market, precisely because they haven’t got a plan for either direction of the market.

Bulls profit when the market goes up in their favour. Bears profit when the market goes down in their favour. What about Pigs? They often hold a trade for too long, until profits have dwindled to nothing, or even a loss. Very often, such habits can damage the trader’s psyche and screw around with his emotions.

The truth is – It is fine to leave money on the table when you have hit your target of expected returns.

This means that you should have strategies to follow in the first place, defining how much returns you are targeting on every trade. You will find that it is almost impossible to nab every single pip of profit along the way. It’s like trying to catch a fly with a pair of chopsticks – simply not going to happen.

This of course, is extremely vital to your success as a forex trader. You always want to trade with a plan. Otherwise, very often you will find yourself being stuck in no man’s land, not knowing when to exit your trade or whether to remain in it.

This brings me to the saying, “Failing to plan is planning to fail”. And yes, it applies very much to your success in forex trading.

If you are serious in becoming a successful forex trader, get started right here today!

Source by Paul Lum