Forex Patterns and Probabilities: Trading Strategies for Trending and Range-Bound Markets

CHAPTER 22

Some Final Thoughts

There are so many different aspects to trading, it’s impossible to cover each and every one in the space allotted here. In this book we’ve attempted to cover the important technical aspects of trading from the forex point of view, in terms of practical strategies and trading methodologies. At this time, I’d like to touch upon some important points that you may find useful in your trading.

A GOOD TRADE IS NOT THE SAME THING AS A WINNING TRADE

Always remember that, in trading, the ends do not justify the means. Or to be more precise, the outcome of your trade does not necessarily justify the method used to achieve that outcome. Some traders take the attitude that as long as the trade is a winner, there is justification no matter what rules were broken along the way.

But the fact is that a winning trade is not always a good trade, and a good trade is not always a winning trade. It’s possible to do everything wrong and still achieve a winning result on a particular trade, just as it’s possible to do everything correctly and still lose on any given trade.

Would you rather be a good trader or a lucky trader? Strive to be a good trader, because anyone can be a lucky trader—for a while. Don’t judge your trading on any particular result, but on whether you are following proper procedure. Did you follow a predetermined plan? Did you place the stop correctly and sensibly? Do you have an exit strategy?

If you are doing all of these things correctly, and ...