As a begginer with less than a few months of experience on
demo platforms only, I just wanted to share something I recently came to respect. As a begginning trader you always hear advice on folowing your system. Being I rearely followed my system rules and ended up bouncing around making mistake after mistake (ie. bad trades).
After reviewing my trading log and watching the USD/CHF movement (I didn't follow my system and wound up loosing 200 pips when my system made 300+) over the past day or so (today is 07:46 June 19, 2003 CDT) it really hit home how important following your system is. It also helps that one of my graduate classes that I am taking on software project management has provided me with a look into the importance to having consistency in your system.
When I look back I realized another importnat lesson. I only had a couple of bad trades that my system generated whereas the number of bad trades from not following my system were much higer. The bad trades outside of my system wre primarily due to not controlling my emotions and thereby not making an unbiased assessment of potential market direction.
To sum this up I wish to reiterate some extremely usefull knowledge to begginners or even veerana in a slump.
1) If you have a winning system follwo it with extreme dicipline ntil it proves itself broken.
2) If your system is broken, analyze your trading log to determine if it is the system that is broken or the implmentation that is broken.
2a) Before declaring a winning system broke, check to make sure that yout emotions aren't affecting the implementation of your system.
3) To have a chance of winning at this game (FOREX) you need to have a winning system, the capability to remove your emotions from the trade, and the dicippline to properly implement your system.
4) Patience is a virtue, if you don't have then either get it or be prepared to lose.
Thats the end of my book. I hope that somebody can get something usefull from it.