Black Dog Forex System Keeps You From Fishing For Tops And Bottoms
The way the Black Dog System is set up, it keeps Forex traders from making a big mistake… fishing for tops and bottoms!
Here is a common mistake I see Forex traders make time and again. I do the same thing myself and have to remind myself to not make this mistake. Sometimes we look at the charts in hindsight and everything is so clear we try to adopt a trading plan to maximize our trades.
Let me explain…
When we look at a chart in hindsight, we can see the exact tops and bottoms of the move. We see exactly when the trend changed and took off in one direction. We also see the exact spot that it stopped. We see ALL the pips of potential profit the market offered us and we say, “How can I capture the entire move to maximize my profits?”
Yes, I agree… it would be nice to capture the entire move. But hindsight is 20/20… where real Forex trading is “blind”. By that I mean, you can only make an educated guess at what the market will do in the future. So, trying to predict the top and bottoms of market moves is really asking for trouble (unless your crystal ball is better than mine).
Successful Forex trading systems (like the Black Dog System), wait for the move to prove itself before jumping in. This lowers the risk and keeps you from suffering big losses. And depending on the exit strategy you use, you should not be looking to cash in on the entire move. More often than not, the market reverses and eats up your profit.
Here is how I look at it…
I am looking to make a profit first, breakeven second and lose money third. If I do either 1 or 2 I am happy. There is no need to kick myself thinking I should have gotten into the move earlier or stayed in longer. As long as I follow my trading plan and either make a profit or don’t lose any money… there is a big smile on my face!
As far as losing money is concerned… I try not to get too upset about it. I only enter a trade if I am ready to risk the amount of money if I lose. If I follow my plan and lose money, I’m not too worried about because it happens. (And with the accuracy of the Black Dog System, I know a winning trade is just around the corner). I only get upset with myself if I suffer a loss and didn’t stick to my trading plan. If I get into a trade when I shouldn’t, widen my Stop Loss or exit the trade on a whim… I make sure to work on that in the future.
When you place a trade, there are a lot of emotions to deal with. So, it is nice to know that the Black Dog System is designed to get you into low risk, high profit potential trades. It does not try to predict the tops or bottoms, but gets you into moves at a time where there is plenty of profit to take… without undo risk. This means I can relax a bit and just concentrate on following the rules once I put on a trade.
It is always safer to make your profits on the middle third of the move.
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