Many intraday Forex systems focus on super-tight stop losses and only end up stopping out prematurely. This turns good, profitable trades into a money-pit of shame. Shame because you were unaware of the power of larger, more appropriately-sized stop losses.
So what’s the secret to my success? I’ve got three.
Most Forex traders love to guess. They love to throw money on guesses that the market is going to turn around here or reverse there. Ah, sorry, but this is why 97% of new Forex traders lose their entire first live account within the first few months of trading! I place trades where the big boys are trading,
Because I trade on the 4-hour chart, my intraday trades require slightly larger stop losses than most typical intraday Forex trades. My stop losses range from 50 t0 200 pips. This allows my trades room to breathe so they can withstand the spikiness of a news-driven market. It works out perfectly.
I don’t reach for the moon on my intraday Forex signals. I’m looking for small wins over and over and over and over again. It’s like throwing a pebble in a jar hundreds of times. Before you know it, before you’ve even realized what has happened, your Forex account is at an all-time high and you are smiling big!
You see, I’m a firm believer that the market DOES NOT want you to make any money. I’m also a firm believer that your Forex broker banks on the fact that we are greedy and want it all…and fast. So, I ride along with the big dogs of Forex, I place the trades that bankers are placing. I use large stops so some BS news event and the freaks that trade those don’t force me out of a good trade. And, I take my small bite of profit, swallow it to my bank account and do it all over again.
Sometimes you’ve got to swallow your pride, take a few pips here and there and never look back. This is how profitable intraday Forex systems work.