What is the SWAG Forex Trading System? You should know it because it is famous. You have probably even traded it before. It is very easy to trade and the profit potential is huge…in theory, at least.
Before you get too excited about this trading method, let's find out what SWAG stands for. During my real estate investing days, I learned this term from Ron LeGrand. It really stuck out in my mind as the way a lot of people go about trading.
It stands for…
Scientific…
Wild…
Ass…
Guess.
Ahhh, now you know what I'm talking about. Almost all traders know what happens when we first start out. We read a few trading books and feel like we know everything. Then we start making dumbass trades based on half of an idea that we learned. Some people blow out accounts, others just lose a little money and quit.
Whatever the case, the result is the same…inconsistent results and losing money. But how different is that from how you are trading now?
How to tell if you are SWAG trading
If your trading doesn't have the following elements, you are probably trading the SWAG method.
- Stop losses
- Backtesting all of the strategies you trade (don't take it from me, hear what these pro traders have to say about backtesting)
- Exact entry and exit parameters
- Good money management, only risking a small % on each trade
- A logging system to figure out what you are doing wrong (and right)
Are you trading SWAG? If so, what are you going to do to STOP trading it?
If you are trading well, is there something that I missed in the SWAG method? If you can think of other bad habits that lead to poor trading, add it to the list by commenting below.
Hope you are trading well!
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Photo: @boetter
