When to call it a day with your system

Hi Rich,

Read your blog today and just wanted to share something with you.

About 2 months ago in the middle of 1 of many losing streaks, I had an epiphany which I feel has helped me understand what it takes to be a successful trader. 

Basically as traders we all have to acknowledge, understand and embrace the Forex for what it really is – A market that is controlled, fuelled and driven by human emotion. No order, no logic, no sense. Embrace the fact even when all your signals are pointing to enter long the market will still go short for no reason whatsoever. It sounds crazy but embrace losing! Embrace that you re not in control and the market will do exactly whatever it wants through no fault of your own.

In my opinion, I feel the reason why so many traders fail in this game is because they can’t handle being wrong, they like being right, they like the feeling of superiority when the market does as they predict and they go insane when the market goes against them. 

Regardless what my predictions or gut feelings are about what direction the market will go I always obey my system. Even if every bone in my body tells me not to enter when all my rules are fulfilled I still enter. And when I do - sometimes I lose and sometimes I win however regardless what happens I’m always comforted in the fact that I obeyed my system.

And I will obey my system till one of 2 things happen: Either I reach my financial goal or I lose all I invested and kiss the forex goodbye. 

Madness, genius or just downright stupidity? Personally as I write this it definitely feels like the latter.

My point is that ive given up trying to second this cursed market. I’m fed up of not closing my trade when I was 30 pips up only for the market to retrace and close me out at a loss and feeling the anger that follows. Or worse – getting your stop hit just before the market retraces 100 pips. 

As you know from my previous email I am far from successful in my trading, in fact im currently showing a 38% strike rate and have had 2 losing months which has wiped nearly a third off my capital. But saying that ive increased my capital by 57% from when I started. Its only been 5 months tho, my progress means nothing, especially with the pennies that im trading with. However saying that im still in this game, and not at a loss.

Is it because my system is great? Is it because I have a 6^th sense for Forex? Or am I just lucky? Neither. I’m just blindly following my system, trying to put some kind of order into a world without order so to speak. 

My advice Rich is to stick to your H system. Couple it with money management and compounding. Stick with it to the very end. At least if you lose your investment you will have peace of mind that you had a plan that you believed in it and you stuck to it till the end.

I sincerely apologise if this email has agitated or annoyed you or made me out to be some cocky newbie smartass. I assure you nothing is further from the truth.

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Kindest regards 

Peter