The above may sound odd – as surely all forex want big gains?
The answer is yes they do, but accepting them is another matter. The problem is – if money is important to you (as it is to most traders) then counter trend moves, which eat into your open equity, can tempt you to bank a profit early. Most traders get excited when they get a profit and the bigger it gets the more tempted they are to take it, before it gets away. As volatility eats into open equity the temptation becomes too great for most traders and they bank early. They end up taking an average profit or mediocre one, when they could have had a huge one. If you are long term trend following you need the courage of your conviction and tremendous mental discipline to ignore counter trend swings and keep your eyes on the bigger prize. Forex trend following is tough mentally but the rewards are immense, if it is done correctly and you have the right mindset. Advantages: You can make huge profits! Keep in mind: You need to be patient when timing entry levels and you also need to be able t
