Little by Little

Not every pip is yours to have.

FX Velocity began April with another 12 wins in a row (extending its win streak to 86 in a row) to gain another 3.7%. The EURCHF, CADJPY, and NZDUSD trades referred to in the last post have all closed for their respective profits.

Although the number of trades for the month have been rather paltry, we have patiently awaited our setups and plugged in profit after profit, with the knowledge that each successive trade should, over time, build the foundation for financial security, and hopefully, substantial wealth.

Over many years we have watched the system at hand perform with such reliability that it is not beyond reason to suspect that this system seems to reflect something about what the world’s markets truly are. Aside from good performance, it is also indicative of a truly sound system when the parameters of such a system begin to give a new perspective on the age-old maxims whose poignant truths are hardly argued by any trader. After watching from the sidelines for a fair amount of time over the past couple of weeks, one of these maxims in particular comes to mind:

“Don’t be greedy.”

It is simple on the surface, but on further inspection, it is hard to tell exactly what is meant by this. Perhaps we could take this to mean to not try and push a profit for more than you have already made, only to have it turn against you. But aren’t we also told to “let your profits ride?” Maybe it means to not get punch drunk on a good break, and fervently add to your position, only to make the imminent turn against you catastrophic – but I believe we could more aptly file this under one of the lesser known, but equally true maxims, “Don’t be stupid” (or to put it more diplomatically, “Don’t gamble.”)

Taking FX Velocity into consideration, “Don’t be greedy” begins to take on a more unique and esoteric meaning. We have exacting criteria for our entries, and we let our profits ride all the way and up to our prescribed exit – discipline is the order of the day. If there is no signal, obviously, we do not trade. So in a sense, being “greedy” would be doing anything else other than what our system dictates. There are times we enter, there are times we do not… and although we might watch every fluctuation with the burning desire to learn how we might profit from each and every move, maybe it is enough to accept that those fluctuations are not ours, and they never will be.

We will take our share – and the rest is for the birds.

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