More Philosophy on the Forex Trading Course

Author: Kishore M
In the first article on Mr. Kishore M’s Forex trading course, we learned how too much knowledge can sometimes make you think your wiser than even the greatest philosopher Socrates. For those who like Mr. Kishore M’s strategy, they will remember how they were instructed to buy on the open of the third candle, after they have seen a price signal that reached the lower Bollinger Bank. To understand the exit things may start to get a little more difficult. Let’s take Socrates along with us again while we determine if Mr. Kishore M really has a good trading strategy here which he likes to call “Instant PIP Profit.”

On Mr. Kishore M’s strategy, we are told to exit when the price touches or “reaches” near the upper Bollinger. Again, we might be given the counsel of Socrates to remain open to the “vagueness” of the market. Socrates would have loved to expose how Mr. Kishore M’s first example shows a case of AUD/JPY which is at 93.25 when it hits its low. Then the third candle opens around 94.2 and shows exactly where you would enter. The exit is around 94.8 and gets you about 60 pips in 90 minutes but Socrates might step in and remind us that the price barely touched the upper Bollinger in Mr. Kishore M’s example!

Many traders would have missed the opportunity to take profit in this short 1-2 minute window that Mr. Kishore M. points out. This is because there is never a strategy that is completely clear and that works 100% of the time. Many traders would have found themselves waiting another 40 minutes or so to get a second chance at an exit on this trade. “Oh no!” they might say. “I missed my chance!” Their brows would start sweating and their heartbeats would speed up. “Where is Socrates or Mr. Kishore M. to help me!?” Luckily, traders would still get a second chance in Mr. Kishore M’s example.

40 minutes later, most traders would likely exit immediately when the price hit the upper Bollinger Band again. This would mean they made the profit in a little over 2 hours which would have been even better at 80 pips. “Phew!” they would say. “That was a close one!” The Forex trader would have finally become a little bit the wiser thanks to the counsel of Mr. Kishore M and the philosophical genius of Socrates and next time he might decide not to wait for the price to actually hit the upper Bollinger Band but exit as soon as it gets close.

The problem with exit strategies is you never know if you should exit right away or wait a little longer. If you exit early, you save yourself the stress of further risk. You might also get the frustration of seeing what “could have been” later on. If you wait too long, you may lose everything and want to kick yourself for what you missed. Try to play it cool and keep your emotions out of the picture. Wise men know that emotional trading is never going to get you where you want to go. Take it from Socrates that you never really know what is going to happen next in a Forex trading course and it’s especially good to be safe rather than sorry!
Article Source: http://www.articleclick.com/Article/More-Philosophy-on-the-Forex-Trading-Course/1598724
About the Author:
Kishore M is an expert Forex Trader who was interviewed by Bloomberg & BBC. He has trained over 100,000 forex students around the world. Watch his profitable forex trading strategy videos at: http://www.ifxprofits.com