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EP8: What are the Dangers of System Hopping?
Often times, sticking with a tested game plan is the best way to win. In this episode of Truth About FX, Walter talks about the possible dangers of drastically changing your trading system vs. mastering the system that you have right now and try to look at the big picture.
Hugh has a great tip on gaining confidence and control in your trading.
http://media.blubrry.com/truth_about_fx/content.blubrry.com/truth_about_fx/TAFX_-_EP8_What_are_the_Dangers_of_System_Hopping.mp3
Download (Duration: 04:05/ 4.67 MB)
In This Episode:
00:53 – focus on one thing
01:33 – bump in the road
02:28 – wanting to win
03:04 – biggest danger
Tweetables:
There’s a certain power in specializing at using a particular trading system [Click To Tweet].
Are you really gaining with your trading or are you just spinning your wheels with your system? [Click To Tweet].
System hopping is the fastest way to losing for most new traders. [Click To Tweet].
Announcer: Sometimes, forex trading is a wild and wooly place to be. That’s why Hugh is here, to post your questions to Walter, the naked forex guy. Hugh’s got questions and Walter’s got the answers. Here at the Truth About FX Podcast.,
Hugh: Alright, Walter, today’s question is: my number one challenge was, and still, is trading system hopping. I can’t stick to one trading system before I finish and look at another one. Am I doomed or what?
Walter: Well, other than suggesting that you read some books about some of the most famous — and there’s some very famous people who have a huge pile of money, and the reason they have this huge pile of money is because they focus on one thing.
You can find private funds that focus on one thing. There’s power in just getting really good at doing one thing. I’m not saying that you should only trade one system or one currency pair, but in the beginning you certainly should.
You should choose. I’m either going to be a specialist in the GBP or the EUR or whatever it may be or I’m going to be a specialist in this trading system and trade that over multiple market.
The real issue here is, probably — and this is what happens in most cases. This is what happened to me. It probably happened to you. I’m guessing, Hugh, when you start out with the system and you get really excited it goes really well. Hits a bump in the road, you get a little bit of a drawdown. Then, you find yourself wondering and looking for something that’s better.
That’s really the danger; that you’re sort of Jack of All Trades, Master of None. You get to this point where, in my case, to look back and say: “well, it’s been three and a half to four years. Where am I really going with my trading? I’m not really going anywhere, just spinning my wheels.”
The reason why is that I’m looking for a new system when my current system, which is probably pretty good way to trade,
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By Walter Peters (FXJake) and Hugh Kimura (Trading Heroes)Often times, sticking with a tested game plan is the best way to win. In this episode of Truth About FX, Walter talks about the possible dangers of drastically changing your trading system vs. mastering the system that you have right now and try to look at the big picture.
Hugh has a great tip on gaining confidence and control in your trading.
http://media.blubrry.com/truth_about_fx/content.blubrry.com/truth_about_fx/TAFX_-_EP8_What_are_the_Dangers_of_System_Hopping.mp3
Download (Duration: 04:05/ 4.67 MB)
In This Episode:
00:53 – focus on one thing
01:33 – bump in the road
02:28 – wanting to win
03:04 – biggest danger
Tweetables:
There’s a certain power in specializing at using a particular trading system [Click To Tweet].
Are you really gaining with your trading or are you just spinning your wheels with your system? [Click To Tweet].
System hopping is the fastest way to losing for most new traders. [Click To Tweet].
Announcer: Sometimes, forex trading is a wild and wooly place to be. That’s why Hugh is here, to post your questions to Walter, the naked forex guy. Hugh’s got questions and Walter’s got the answers. Here at the Truth About FX Podcast.,
Hugh: Alright, Walter, today’s question is: my number one challenge was, and still, is trading system hopping. I can’t stick to one trading system before I finish and look at another one. Am I doomed or what?
Walter: Well, other than suggesting that you read some books about some of the most famous — and there’s some very famous people who have a huge pile of money, and the reason they have this huge pile of money is because they focus on one thing.
You can find private funds that focus on one thing. There’s power in just getting really good at doing one thing. I’m not saying that you should only trade one system or one currency pair, but in the beginning you certainly should.
You should choose. I’m either going to be a specialist in the GBP or the EUR or whatever it may be or I’m going to be a specialist in this trading system and trade that over multiple market.
The real issue here is, probably — and this is what happens in most cases. This is what happened to me. It probably happened to you. I’m guessing, Hugh, when you start out with the system and you get really excited it goes really well. Hits a bump in the road, you get a little bit of a drawdown. Then, you find yourself wondering and looking for something that’s better.
That’s really the danger; that you’re sort of Jack of All Trades, Master of None. You get to this point where, in my case, to look back and say: “well, it’s been three and a half to four years. Where am I really going with my trading? I’m not really going anywhere, just spinning my wheels.”
The reason why is that I’m looking for a new system when my current system, which is probably pretty good way to trade,