Creativity In Forex Is Overrated

January 11, 2007 by Trader Rich 

I thoroughly enjoyed an email that Harvey sent to me where he states that creativity in trading is overrated.  I don't know whether he's right or not but he states his point very succinctly.  I don't think there is anything creative about my current trading state.  I'm still of the belief to keep things simple and most of what I do is more common sense than creativity.  Here it is:

Word up -

I think trading creativity might be overrated. I cannot guarantee that it is overrated because I'm still working on the goal of trading for a living. However, it has been my experience thus far that creativity leads to confusion.


Consolidation leads to Breakout –> Breakout leads to Consolidation…..ad infinitum. Edges are easy to find. I used to agree that creativity was needed in pursuit of the winning edge but now its all about trading the obvious. Obvious works because lots of other people see it too.
There are 3 reasons why I havent yet had the success I would like trading the obvious.

  1. I didnt take the trade. (No good reason for this)
  2. I placed my stop too close. (No good reason)
  3. I took my profit too early. (No good reason)

If I had to comment on Harvey's three "no good reasons", I'd associate a cause for each.

    1. Fear and doubt
    2. Fear and doubt
    3. Fear and doubt

Am I stating the obvious here?  I don't know so if I am, tell me.  I
feel uncomfortable using the word "fear" a lot in my posts but I think
it is such a factor in my decisions that I just cannot help
it.  I believe that the best way to overcome this is to accept the fact
that you're going to lose and just as important, never allocate more
than a certain percentage of your capital to each trade.

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