Principles of aBargain Hunter
have paid less for something you just bought. From garage sales
to global finance, bargain hunters seek out the absolute best price,
whether they are buying velvet Elvis or 1 million euros. Under all the fancy
software, chart patterns, indicators, and analyst opinions, trading currency
has only one goal: to buy currency when it is dirt cheap and to sell it to
someone else for top dollar. Unfortunately, traders often get distracted
from the primary goal of trading to search out new or exotic trading systems
promising to have unlocked the secrets of trading currency. There is
no secret to making a profit, whether you’re running a pawn shop or trading
pounds. Your job as a trader is to buy at a value, sell at a premium, and
never pay full price.
Identifying a good deal in the currency market is a little more complicated
than telling the local car dealer you won’t pay sticker price. Traders
become bargain hunters by learning to read price action and then anticipating
the market’s next move. It takes discretion and experience to develop
a sixth sense about price action, and even an experienced bargain hunter
can get suckered from time to time. Bargain hunting is a large component
of the way I trade, because demanding the best price out of every trade
ultimately reduces risk and increases profit.
I have created five principles of a bargain hunter to frame my style of
discretionary support and resistance trading. The strategies described in
this book have their own guidelines for locating trades, but all are grounded
in the principles of bargain hunting. Each of the five principles is designed
to guide you through a specific trading task. From maintaining a healthywork and life balance to managing profit, the tenets of each principle in
this chapter must be met before I will take a trade. Pay close attention to
the material covered in this chapter; this is how I bargain hunt and I don’t
mind being called cheap. It’s a badge I wear proudly.
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