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How to Avoid Dumb Trades and Make the Right Trades

How to Avoid Dumb Trades and Make the Right Trades

Everyone at heart wants to be a swing trader. This implies human nature is to look to buy low and sell high but it is this tendency that leads to taking dumb trades.

This does not mean swing trading is not a profitable strategy but only when the stars align. Otherwise, it can lead to buying when you should be selling and selling when you should be buying and this is what I define as a dumb trades.

So the question you should be asking is how do I get on the strong side of the market and start making the right trades.

One way is to accept the principle that the forex market lives to run stops and the strong side is the one where there are no stops to run. In other words, if there are no key stops to run on the upside then the strong side is to sell. If there are no stops to run on the downside then the strong side is to buy.

It sounds simple but in practice the farther the market moves from a key level and stops, the harder it is to find a good level to enter a trade on the right side with a reasonable stop. This leads many traders to take what looks like the easy trade by buying when a currency looks cheap or selling when it looks expensive because it is hard to find an entry level with the trend where you can place a reasonable stop.  I call this a sucker bet. More often than not it turns out to be the dumb trade.

This is not theory but reality. I have done it more times that I care to remember so I am speaking from experience.

How did I overcome this?

The answer is by creating a system that takes the hard trade and makes it the right trade by being able to identify a level to place a stop with the trend when there might otherwise might not seem to be one close by.

What is the system?

The system is called the Amazing Trader Rubber Band Trading System and it is designed to identify the strong side, identify the stop and base the entry off the stop. In this way, those following this system can get on the right side with a reasonable stop (sometimes as small as 5 pips) and avoid the dumb trades that plague so many traders.

So following this logic, what looks like the hard (to find a good entry level) trade turns out to be the right trade while the easy to enter trade turns out more often than not to be the dumb trade. 

Contact me for details  

Jay Meisler

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