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Naked Forex: High-Probability Techniques for Trading without Indicators by Walter Peters, Alex Nekritin

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CHAPTER 12

The Forex Cycle

Insanity is doing the same thing over and over again but expecting different results.

—Rita Mae Brown

It is true that most traders do not consistently find profits; the vast majority of forex traders lose money consistently. Because of this, many traders find it difficult to stick with a trading system. The vast majority of traders are always looking for a new and improved trading system. The trading system gets the blame for all the losses. Most traders are, therefore, constantly searching for a better trading system, looking for a solution to the consistent losing. The ironic thing is that the solution has nothing to do with the trading system.

An explanation of the cycle of doom will help you to see how you can break out of this cycle if you are currently finding it difficult to reach consistent profits.

WHAT IS THE CYCLE OF DOOM?

The cycle of doom consists of three phases. The first phase is the search. The second phase is the action. And the third and final phase is the blame. A close look at each of these phases reveals that the cycle of doom characterizes a logical approach to trading. To become a successful trader, however, you will have to break out of the cycle of doom.

How do you break the cycle of doom? The first step is to understand the cycle. Once you understand the cycle of doom, you may break free from the cycle of doom. It is important for you to understand what is happening so that you may identify it, and then move beyond the cycle ...

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