What if you did the opposite?
Hello friends forex traders! Today I want to offer you to look at your own trading from an unexpected angle: to feel like a scientist creating a vaccine for cancer or a new android that looks as human as possible. Indeed, it is often the most unexpected ideas that lead to success.
What if you did the opposite?
You've probably heard of all these trading tips, or at least most of them:
• Always trade in the direction of the trend
• Let your profit grow
• Psychology and discipline are the most important strategies.
• Open your transactions only with a risk / reward ratio of at least 1: 2
In my opinion, the reason for these “tips” is so popular because they are easy to understand and not because they are effective in practice. More precisely, they are effective, but not for every strategy and not for every trader.
In other words, they all have a conceptual meaning. But not always practical.
Theory and practice often diverge, especially in the unpredictable world of commerce. What initially seems like a good idea often does not produce the expected results.
Finally, many traders follow these tips, and, in the end, lose money ... I.e. It is not that simple.
Perhaps it is time to begin to question the legitimacy of such ordinary trading wisdom.
To begin with, ask yourself: “What if I did the opposite of what people are talking about?”
Instead of trending, try trading against the trend.
Instead of letting your profits grow, try setting conservative goals for profits.
Instead of using a risk to reward ratio of 1: 2, try using 1: 1 ... or even less! Scalpers will understand what I mean)
If you are always trying to enter at the beginning of the movement, try to enter 1 candle later.
I am sure that you can come up with other ideas ...
Naturally, as a precaution, you will test these ideas on a demo account. Or in a trading simulator. The simulator is faster, but the demo account is more reliable - because when trading in tester mode, the “present moment” element is lost.
I also advise adding ideas one at a time, and not a bunch at once. This will help you understand what worked and what didn’t.
If your tests are profitable
If you ultimately profit from your tests, that would be something.
The question is to find out why you make money by doing the opposite of what everyone else is doing.
Valuable lessons can be learned from this.
If your tests bring losses
If, by performing your tests, you lose money, then you should also find out why this is happening.
How is it that you lose following regular trading recommendations? Is it really necessary to do the opposite?
What would that mean? How can this help your trade?
Again, here you can get some valuable information.
Each of the people has their own tricks.
There is no better way to trade, since everyone trades differently for each individual trading strategy.
Thus, all you have to do is find out what type of trader you are by doing the opposite of what you tried to do, observing your experience and, of course, the results.
Just as a fish does not know that it is in water until it is taken out of the water, you will not know the gaps in your trade until you try to put into practice something else.
Summarizing the above: I want you to draw up a number of ideas, possibly unexpected, to test testing in conjunction with your trading system. Such experiments will give you a HUGE field to improve your strategy, and also help to understand whether you are on the right track or not.