Calm down. I haven’t gone crazy and I haven’t overdosed on Angry Birds. I don’t really think that the chicken you see on your left will make a fortune on a EUR/USD position.
For one thing, it may be hard for it to click on the mouse to actually perform the trade, for another, I’m not really sure that this particular chicken has any interest in the matter.
But for all other intents and purposes, chickens make good traders… not the birds, the people who are chicken.
Usually, calling someone a chicken or being called one is an insult, it’s a derogatory term. However, there are timse and situations in life where being a coward, to a degree, has its benefits. It can keep you from losing all your feathers… or money.
In the case of Forex trading, rashness and reckless bravado are more likely to lead to disaster than to any long term success. Being too brave is not smart, it leads to risk taking and to impulse decision, the very worst way to trade.
The first thing any Forex trader needs to do is to protect what he or she has. Profits are a secondary goal. The first and foremost goal is to keep what you got. This requires an approach to trading in which risk management is the main key. Only when you know how to protect your assets, you can actively seek more and more profits. So, being a chicken isn’t so bad. It can actually work to your advantage.
Of course, you can’t be too much of a chicken, you can’t be too scared to actually place trades when your trading system signifies that you need to do so, you have to be willing to take certain risks to trade at all. There is no way to trade without any risk whatsoever. But, it pays off to be just a bit more careful than many traders are.
You need to find that sweet spot where you’re not taking too much risk but where you can still actively trade. If I could sum it up: be a chicken, but one which can actually fly.
A good resource to help you with that is the Disciplined Trader Program, not always available but recommended just the same.
