Sometimes it feels to me that trading forex is like wandering into a dark cave and finding a sleeping giant dragon covered with golden scales who sits on top of a treasure of even more gold.  My goal is to silently snatch a bit of that gold and then run like crazy out of that cave before he wakes up.  Why do I do this? Because I've been bitten by that dragon many times.  Sometimes it's just a little slap with his tail but other times he's taken a big chunk out of my back side.  I've since learned how to tiptoe around him and curb my greed.  I just take a little nibble or two and let that beast keep sleeping.  Shhhhhh!  Don't wake up the sleeping dragon!


Can You Take Your Gold Without Waking The Dragon?


This dragon has been one of my best teachers.  He's taught me a lot about greed.  When I hang out in his cave too long because I want to take a big hunk of his golden treasure, he usually senses my presence and wakes up pissed off looking to swat me hard.  When I take just a little, even a few times over and over, he never seems to feel it.  It reminds me of the story about the frog that leapt into the pot of water that was heating on the stove.  He didn't even notice that the water kept getting hotter and hotter because it was such a nice warm cozy bath at first that by the time it got really hot, he was unable to muster the strength to jump out.

Trading forex is like that.  Stay in a trade too long and there are more and more variables that may come into play like news reports or unexpected and unexplained spikes or crazy stupid widened spreads, or days and days of consolidation, who knows???  Then it's just gambling and you may as well flip a coin because if you looked at the trade with fresh eyes now, there's probably no way that you would take it and stay with it.  Now you have a 50/50 chance that this trade will work and you've lost the edge that gives you the probability of net profit.

I give my trades some time to work and if they don't in a reasonable period of time, I dump them and get the hell out of there before that dragon wakes up and slaps me silly.