Forex Mistake #11- Chasing the Flying Pig

Why Chasing the “Holy Grail” Could get you Broke?

At some point in our trading “careers”, most of us are engulfed by the madness of “I will find the Holy Grail… I will catch the Flying Pig” which translated into plain English means I will find a strategy that never gives me a bad trade and never misses a good opportunity. After all, that’s the Holy Grail of trading… never a pip left on the table and never a pip lost. Well, the sooner you realize that’s not possible, the sooner you will start making money. Sure, it’s so appealing to think that you will win each trade you open… but so surreal. Welcome to my trading hell. I am still hunting the Flying Pig… or at least a part of me does.



How Chasing the Flying Pig could get your Account Blown?

I probably made most of the mistakes possible in trading so I could say I’m some sort of authority in the field of idiotic trading. Actually I was so stupid that for my first trades I didn’t even use charts – I was just looking at the quote and if it was showing a small increase I would buy it. And on top of that, I was trading 0.10 standard lots on a 100 bucks account… can you imagine? I don’t think I need to tell you how long it took me to blow that account – a jiffy. But it was a valuable lesson because it made me think about the fact that trading must be more complex than just buying when the quote is green. Next, my search got me to the Stochastic… my eyes were in tears of joy. At the time I’ve never seen such an amazing tool which crosses when price is about to change direction, anticipating the next move. I thought I had it all figured out… the secret to successful trading, money, cars, bikes was in my grasp, the Flying Pig was in my backyard. But all bubbles burst and I soon realized that my Stochastic can give a signal to buy or sell and price would just keep going in the opposite direction. Big disappointment! And then it all really began: I found the MACD, the RSI, the Fibs, Bollinger Bands, Awesome Oscillator, CCI, Ichimoku… all failed in their role as a Holy Grail. But my determination didn’t fail me so I started to combine two of them, then three of them, then four, then all of them. “Mess” is the perfect word to describe my trading. I was looking for a strategy or indicator that never fails and in fact I was getting more bad trades than good ones. When a gazillion of my indicators said Buy, the other half said Sell; when all agreed, most of the times price went straight to my Stop Loss. It was time for a change of plans so after a lot of study I decided to trade just naked price action, with support and resistance levels. What do you know: that wasn’t the answer either as I was still getting losses, although my trading was improving. Now for a change, I was getting more winners than losers but the Indiana Jones in me wanted the magical solution to trading… I couldn’t cope with losing a trade and I have to admit that now, after several years of trading, I still cringe when price comes close to my Stop Loss, I still get a bit frustrated, but I’ve learned to accept my losses. In fact, I realized that the Flying Pig or the Holy Grail or whatever you want to call the never-losing strategy will not be found on a chart or on an internet forum because it simply doesn’t exist, so please don’t make the same mistake I did and don’t waste your precious time searching for it. What I just said doesn’t mean that you can’t be a guy who puts food on the table (and maybe 2 supercars in the garage) through trading Forex; it just means that… oh sh1t, what does it mean…



Conclusion - Losing Trades Is Not Equal To Losing Money

Yeah, that’s what it means. You can lose some trades and still come up on top, making money and being successful. Of course, when you lose a trade, you lose some money but your trading is comprised of many trades and you should look at it from a weekly, monthly or even yearly perspective. You can lose trades as long as you finish the week (or month or whatever your sample is) in profit and I am sure that many of you would be surprised if I’d say that winning just half of all your trades is enough. Want to know how is that possible? Money management and risk-reward ratio. Those are the things that will help you avoid going broke and will probably get you those 2 supercars. And about Flying Pigs… well, have you ever seen one? I sure haven’t… so there are only two possible explanations: they don’t exist or they know how to hide really well. Which one do you believe is the right one?


Have We Saved You From Going Broke?

  • Dididuck

    im done with flying pigs. been searching for every service on earth that promise winning rates, but am disappointed with all of them. good and nice article ! learn from my experience as well

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