As I mentioned in the first section, the sin of flip-flopping is closely related to the sin of impatience. Why? Because by nature, investors want more from their investments. If a particular strategy isn’t yielding strong enough returns (or so the individual thinks) there must be something wrong with the strategy. And so it begins.
This is one of the most common problems I’ve encountered in traders over the years. Often I will meet someone who has been struggling away in the markets for years, always chasing the next big thing. They believe to the depths of their soul that this strategy or system is the one. Big things are only a few trades away. They don’t realize that the problem most often lies not with the particular system, but within themselves.
Before you say it, of course some systems just plain don’t work. I believe there is a special place in the afterlife reserved for those snake-oil salesmen (and there are plenty out there) who claim to have simplified a financial market down to a couple of arrows or a few lines on a chart. By and large, speculation on future movement is a difficult task, and most amateurs don’t fare particularly well. This is one of the reasons why Unique FX tries to remove the element of speculation as much as possible from our strategy, and instead relies on market dynamics to generate returns. But I digress…
9 The 7 Deadly Sins Of FOREX (And How To Avoid Them)