Traders often begin with a simple strategy, and see a small return. They then assume that if they continue to tweak their system, taking into account a few more variables, that they will increase their returns. This is not usually the case. Instead of looking at simple things such as price movement (which is the final determinate in making a profit) and whether the market is trending or ranging, the trader attempts to determine exact reversal points and make more trades. Trading profits are made at the margin – even the best traders only win slightly more than they lose. Therefore, if a system makes money, stick with it and don’t change it; focus on money management instead.
For more on this topic go to: http://www.investopedia.com/articles/forex/11/ten-forex-myths.asp?partner=fxweekly6#ixzz1QIGaqKWP
Anthony DiChi at TradeCurrencyNow,
America’s Forex News and currency information source.