The Duck Principle – your key to success in forex trading

What on earth is the ’Duck Principle’, and what does it have to do with trading on the forex markets? Well, quite a lot. Perhaps the most common mistake made by traders is to trade their perceptions, expectations and hopes, whatever fits into their current scheme. Unfortunately, markets rarely comply and if they do it is even worse for the trader as it gives the false impression of being right about the market direction. So the trader is encouraged to increase his bet in the form of larger position sizes, neglected stop-loss orders, you name it.   Soon thereafter comes, usually without a warning, the revelation of the sad truth, namely that the previous winning trade was just a one-time ’lucky punch’. Have you ever been in a situation like this? Well, if the answer is no, then chances are you have never traded forex. If it was a long time ago, and you can’t remember it any more and still trading forex, then you might have overcome this kind of mental weakness typical for rookie traders, in which case using the Duck Principle would not improve your trading performance significantly.

 

But if you still go through similar experiences on a regular basis, then you might have been stuck in that mindset and wondering why you don’t get ahead with your trading (and with your account size) despite your experience and wide knowledge of all the technical analysis stuff. Well, the reason is that you neglect the Duck Principle. It says: if something looks like a duck, walks like a duck, swims like a duck and quacks like a duck, then it is beyond any reasonable doubt that what you see is really a duck. Translated into a forex trading rule: you should always look at the market, accept what the market does and act accordingly. There are great technical analytical tools available, so find the combination of them which works in most cases and gives you the best results. And don’t let yourself be influenced by market noise, believe your own charts, your own tools and your own setups only. The crowd is usually wrong about the future direction of any investment vehicle. If everybody and his brother are screaming loudly ’bull’, and your own indicators are telling a different story, then better find an exit as soon as possible. If you see a duck and everybody else around you wants to persuade you that it is a chicken, would you believe it? Even if those people are the most respected and loved ones in your life, would you accept it? If you would, then you should better give up forex right now, or discontinue your trading until you manage to give yourself a total mental reprogramming. Trade always what you see and what your tools are telling you about the direction where the market is headed.

 

Certainly some of the time you will still be wrong, so you have to protect yourself with stoplosses, or hedge cash positions with options, whichever you prefer. If you have not yet managed to put a system together, or your existing toolset, or system or trading style does not produce the expected result and you wish to improve your profitability, we at www.sureforexsignals.com have a great tool for a very humble price for you. It is a sequential analysis-based leading proprietary indicator we have built a signal service upon. This indicator makes it possible to predict market turns (intermediate- and long-term market tops and bottoms) with over 85% accuracy! Imagine, what kind of impact such a tool would have on your trading results! It can be used as a stand-alone trading system, but even better as part of your own, already tried and tested trading toolset. If all your good old, tested and proven trading methods like trend channels, support-resistance levels along with technical indicators like Stochastics, MACD, RSI (just to mention the few most important and widely used ones) are all pointing into the same direction - it looks, walks, swims and quacks like a duck - then you are most likely to just have a nice fat duck with dollar signs on its feathers in your crosshairs. Still don’t have enough confidence to pull the trigger? Then all you need is a confirmation by our proprietary leading indicator. For more info visit us at www.sureforexsignals.com.

 

Don’t go unprepared for a hunt, even if all you want is a delicious roast duck for dinner. With a nonfunctional rifle and no navigational devices you may find yourself lost in the wilderness, and at sunset the heavyweight predators also go to dine out and by being unprepared you may end up being their prey.