Saturday, 24 May 2014

FX Trading - Itchy Finger Syndrome

One of the most common pitfalls of FX trading is the itchy finger syndrome.

What it means is basically that the trader thinks there is an opportunity in the market all the time. This prompts him to become overly eager to get into a bad trade, without much hesitation.

Normally characterized by:
- Placing a trading very soon after getting out of one
- 'Gut' feeling that there is always opportunity in the market
- Maxing out available margin for the largest trade size possible
- Feeling of regret once the trade goes wrong
- Taking very little profit but letting losses run too far
- Perpetually getting stopped out

I can say this is surely one of the most costly trading pitfall. If you can't recognize it and control it, you will lose a lot of money.

Trade safe.

No comments:

Post a Comment