Forex strategies are a guide for you to follow; however, you can always tweak the strategies you read about to fit your style. The fact is skills and knowledge is just the beginning to trading. You need strategies that fit your capital and lifestyle. Professional traders make mistakes and see losses. It is not because they are unskilful. There are several reasons mistakes can be made such as rushing or misreading something. Losses happen despite the best readings of the market movements. Things just happen sometimes due to the uncontrollable nature of the forex market. It is best to focus on strategy and techniques instead of any losses you have. If you can focus on the strategies, gaining better strategies, and correcting your mistakes you won’t lose money by mistake. The following are about strategies and mistakes.
One Big Deal is not part of Forex Strategies
If you believe you can enter one big trade and strike millions stop now, do not trade, and come back when you mature. Sure, in gambling you have high rollers and those with luck are able to make millions, but the risks are just as high and some often are losses. Forex strategies are not about gambling. Instead, strategies are about taking what you have, gaining skills, and lowering your risks as you patiently earn money.
Risk-Reward requires balance in forex. You might be willing to take more risks than another trader. You may like gambling with your money by using a higher leverage. What happens if you place two trades in a day where you lose $6000 AUD in one and gain $4500 AUD on another? You still lost $1500 AUD for that trading day. Someone who places the same trades decided to lower their risk by lowering their leverage and putting in a trailing stop loss. They lost $1500 on the first trade, but gained $2000 on the second trade. The person might have traded with fewer funds, but they lost less and therefore ended up with $500 profit for the day. Forex strategies are about making profit, not losing it.
Forex Strategies Tell you to Forget
You need to be thankful for the profits you make. Do not concentrate on what could have been. If you ignore forex strategies and examine what you could have made then you will always look at the losses or the missed opportunities with a negative view. It will hold you back. You do not want to hold yourself back because it will always end up in a loss.
Instead, think on the positive trades and the fact you are making a profit. To make a profit you still need to learn forex strategies like technical and fundamentals. You should understand the market jargon. You definitely need to be patient, study, and practise in the market before you trade real money. By practising you can create a style that fits you instead of taking someone else’s style and trying to adapt it to you and come away with profit.
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