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Nial Fuller

NIAL FULLER
Professional Trader, Author & Trading Coach

Stop Trading Like a Pig

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By in Forex Trading Articles by Nial Fuller Last updated on | 37 Comments

pigs get slaughteredAre you a Bull, Bear or Pig in the market? If you don’t know what I’m talking about, then you’re probably trading like pig and you’re probably losing money.

As the old Wall Street saying goes: “Bulls make money, bears make money, and pigs get slaughtered”. This saying warns traders and investors against excessive greed and impatience. Simple as it may seem on the surface, it conveys more than it may seem. Not letting greed affect your judgement in the market is much easier said than done.

Let’s discuss several ways the market punishes excessive greed, also known as ‘trading like a pig’, and some ways you can avoid being controlled by it. So, if you’d prefer to make money in the market, rather than get ‘slaughtered’ by it, read on…

Are you a bull, bear or pig?

Traders who have a bias on a market (bullish or bearish), and stick to that bias without over-trading (not being greedy), will typically make money over the long-run. Where many traders get into trouble is trading against the dominant market bias or trend. This is an especially easy trap to fall into if you don’t yet know how to identify a market’s trend. However, even traders who know how to identify a market’s trend still tend to trade against it far too often, this is called over-trading, or being a ‘pig’ in the market.

Thus, your goal as a trader should be to simply be a bull or a bear, and not a pig. The way that you become a bull or a bear is by developing a bias for a market and not deviating from it.

For example: If a market is in a clear trend, either up or down, you stick with trades ONLY in the direction of that trend and you ignore any potential counter-trend trades you think you see. You do this until that trend has clearly ended.

So, if a market has clearly been trending higher, you want to look only for price action trading signals that are buy signals, ideally from a confluent level in the market. If you try trading all the counter-trend retraces to the downside against a strong uptrend, you’re being a ‘pig’ and you’re going to lose money. Don’t be a pig, determine your bias for a market and remain patient while waiting for a signal in-line with that bias, and if no signals form in-line with that bias for a week or two, then you simply do not trade that market. Remember, not trading is ALWAYS better than losing money!

Unreasonable expectations

‘Pigs’ have unrealistic expectations about trading. They think they’re going to get rich quick. Whilst you might be lured into the temptation of ‘getting rich quick’ that many other trading sites and services advertise, I am telling you that it’s simply not possible. Actually, if you really believe you’re going to get rich quick in the market, I am going to do you a big favour and save you thousands of dollars by telling you to just stop now, stop reading this article and stop trading forever, you will be better off. Trying to ‘get rich quick’ will only make you poor, fast.

Don’t get me wrong, I’m not trying to turn you off to trading, I am just being honest with you since not too many other people in the trading world will be. Traders who don’t try to hit home runs every trade (not being greedy), will make money eventually. However, again, if you trade like a ‘pig’ by trying to make money on every little price fluctuation in the market, you’re going to become addicted to the market, emotional, and as a result, blow out your trading account.

Stop chasing what’s already moving

If you miss a good trade setup, don’t ‘chase’ it. Just accept that you missed it and wait for the next opportunity. If you jump into a trade too late, you’re going to get a bad entry which means you’re going to need a wider stop loss and there’s a greater chance the market will move against you shortly after entering.

Chasing trades is also being greedy. You can’t successfully trade every move in the market, you just need to accept this. Trading is not about getting in on EVERY move, and it’s impossible to do this profitably anyways. All you need to do is hit one or two good moves a month and you can take a nice chunk of change out of the market. Trading a small account is difficult because even if you have one or two big pip gains per month, it’s not going to equate to a lot of money. However, money cannot be your main goal when you’re starting out with a small account. Learning to trade properly should be your main goal. If you do that, you will eventually make greater amounts of money.

The clearest example of trading like a ‘pig’

pigThis one is pretty self-explanatory and obvious. But, it needs to be mentioned since we are talking about being greedy and trading like a ‘pig’. Quite simply, if you risk more than you are comfortable with losing on any one trade, you’re trading like a pig and you are eventually going to suffer an uncomfortably large loss which will set you on a course to blowing out your trading account.

Risking more than you can really afford to lose is the clearest example of trading like a pig. If you cannot at least muster the discipline to tune your risk per trade to a level that you’re emotionally comfortable with, you will not make it as a trader. The ‘barometer’ for being ‘emotionally comfortable’ with your risk on a trade, is whether or not you can sleep well at night with a trade on. If you find that you can’t sleep properly and you’re constantly looking at your trade on your cell phone while lying in bed when you should be sleeping, you need to dial-down your risk until you can easily sleep at night without thinking about your trade. Traders who practice proper risk management every trade (not being greedy), will make money

Conclusion

As you can see, greed kills, it can kill a trader’s returns by making them act in haste. The best trader is the one who is intellectually flexible and dispassionate in analysis when it comes to trading. As Warren Buffet has said “the critical determinant in an investor’s success is not intelligence or skill but temperament.”

In other words, if you trade like a pig, you’re not going to succeed as a trader. You can learn more about how to trade like a bull and a bear by learning some of the simple price action strategies which I teach in my members’ area and price action trading course. Hopefully, by doing so, you’ll learn to develop a market bias, stick with it, and stop losing money by trading like a pig.

About Nial Fuller

is a Professional Trader & Author who is considered ‘The Authority’ on Price Action Trading. He has a monthly readership of 250,000+ traders and has taught 20,000+ students since 2008. In 2016, Nial won the Million Dollar Trader Competition. Checkout Nial's Professional Trading Course here.
  1. Fanani September 17, 2019 at 12:12 pm

    Thank a lot Nial.

    Reply
  2. Dmitriy September 16, 2019 at 1:57 pm

    Thanks a lot, Nial!
    That was a truly beautiful lesson!

    Reply
  3. Sunday September 14, 2019 at 9:53 pm

    what to know more about risk management
    if I want to risk 1$ on a pair what will be my lot size and pip value to set as a Stop loss

    Reply
  4. Zinnur June 2, 2019 at 4:34 am

    Important lesson. Thanks

    Reply
  5. Благодарность October 30, 2018 at 3:47 am

    Magnificent article

    Reply
  6. Rahmat February 26, 2018 at 7:36 pm

    Almost every articles content and language from Nial are really giving positive effects including this one.
    So thank you Nial.

    Reply
  7. Olawa February 18, 2018 at 1:01 am

    Nial is my preferred Forex mentor anyday

    Reply
  8. DERRICK February 16, 2018 at 12:54 am

    all i can say is thank you so much

    Reply
  9. Tha Mathabzo Zulu February 15, 2018 at 8:15 pm

    Thank Nial

    Reply
  10. Duncan February 15, 2018 at 6:29 pm

    Thanks Nial;

    This was a great post which actually helped me rephrase my thoughts after my losses.

    I am still not very profitable at this stage but every time I lose, I look back to see what I could have done better and learn to minimize my losses maybe exit at a small profit rather than a loss!!

    However; after having read this, I also now appreciate the fact that losses are a part of it as well and I feel less discouraged before taking the next trade than before. Things sometimes are easier said than done – true – but after reading these guidelines, I learn a lot and appreciate it heaps. I am learning a lot and the best part of it is that I am enjoying it.

    Thanks for spending the time to post such valuable guidance!

    Duncan

    Reply
  11. Peter Miller February 15, 2018 at 2:46 pm

    Another good lesson. As they say ” life is what you make it “and that goes for trading also, think before you act and know that never one day (or life is ) is the same as the last one, so treat as Nial says each trade as a new beginning. Thanks .

    Reply
  12. rudra February 15, 2018 at 6:24 am

    good one sir

    Reply
  13. Khesiwe February 15, 2018 at 2:14 am

    Excellent article pactice makes perfect I’m going to practice every advice in this article thanks Nial

    Reply
  14. Winston Roy Longbottom February 15, 2018 at 12:01 am

    Thanks Nial, I for one admit that I was influenced by previous success and could not see the next trade through that; I was brought back to reality with some quick losses, however I puuled my thoughts together and looked at my next trade with confidence and considered every possible angle before taking it and I am now back on track. This article has since reassured me of that fact and I must disregard any previous trade before attempting the next. Your articles help keep sanity in the trading game and also leads to further success. Many Thanks. Winston

    Reply
  15. farzad February 14, 2018 at 8:50 pm

    Every word in this article is like gold…

    Thanks AGAIN Nial.

    Reply
  16. Olamide February 14, 2018 at 2:03 am

    Thanks Nial. That’s reminds me of a trade some years ago before I quit trading. I bought EUR/USD on $0.05 lots with $20 risk and i made a profit of $183 on that trade so that winning recency bias got into my head and I felt overconfident, then i went ahead to trade $0.10 lots on my next two trades and I lost both. That’s how I gave back the profit I made from that EUR/USD to the market. Fear start to catch me then I reduce my lots to $0.01 which definitely reduced my profit that I would have make on some trade. Though I just came back to the market since two or three years ago that I quit but am still using demo account to test my trading strategies before trying to come back live. Thanks once more.

    Reply
  17. Wandera Moses February 13, 2018 at 8:50 pm

    Nial thx for this one also. i have improved alot in trading just by reading your articles. thx alot

    Reply
  18. ampurirag February 13, 2018 at 6:09 pm

    Excellent and timely. Thanks Nial.

    Reply
  19. Seiso February 13, 2018 at 1:44 pm

    Typical of Nial’s mail’s. I am not in anyway surprised to find this post hitting the nail on the head as it does and so timely as well. I always find Nial’s post as informing, factual and educating like this one. Thanks to Nial, from now I am no longer going to be enslaved to my last trade’s results.

    Reply
  20. Colin February 13, 2018 at 10:31 am

    Thanks for the trading insight. Particularly about training our brains to behave properly.

    Reply
  21. Hettie van der Vyver February 13, 2018 at 5:12 am

    this makes sense!!

    Reply
  22. Thoko February 13, 2018 at 5:09 am

    Well I am a true novice,I have not started trading yet. If I understand well briefly you say if one is a trader one must bury the past.That is my motto
    So I feel l Iam going to do well.

    Reply
  23. Wasantha February 13, 2018 at 4:45 am

    This article explains what happened when I first started trading forex. After reading many of Nial,s writings on the subject of trading I feel that I am expanded in my knowledge and confident about my trading decisions.I really appreciate Nial,s works,

    Reply
  24. kris February 13, 2018 at 2:59 am

    i noticed today after one loosing trade that it can’t reflect, the other running trades .
    After that i checked my emails and i saw your email as first .I have read it and then it was like you would heard what i sayd before It was simmilar to :

    If you just lost, it has no bearing on the fact that your next trade might be a winner.
    If you just won, it has no bearing on the fact that your next trade might be a loser.

    thank you for your work .
    traders mindset ..

    have a nice day.

    Reply

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