Here is a trading tip that helps a lot of traders tremendously. It is one that takes lots of people a long to time implement because it seems simple and not that prevalent. Too many people are searching in the forex world for that one big secret that is going to make them millions. Unfortunately there is no secret you can find to do that. The key is to learn lots of small truths and put them together to form your trading plan and trade rules.
One truth that helps is knowing how to minimize your losses. The technique is to start small and add on to the trade once it is going in your favor. This way you are more protected. When you lose you only lose a little but when you win you win a lot. When you take the time to set up a good trading plan you will find that you win more often then you lose. Strategizing puts you on the right side of probabilities and outside of the this is just a gamble realm.
Another key point is that you are going to lose as a trader that is just part of the market but if you can learn at least one point from every lose and write it down, your trading will grow exponentially. You dont have to lose everything on a losing trade, they can actually be some of your most profitable trades because they can lead to new insights that lead to greater successes in the future.
An example from a trader of this: I put a trade on and it went in my direction 20-30 pips. I then moved my stop loss closer to my entry point. The trade came back and went 2 pips past the stop loss and of course I was out of the market. Then the trade went in the original direction 250 pips. I learned more about setting stop losses on that trade than I had learned in the previous year. I also learned that I made a good entry on the trade and read the market right. By reviewing that trade and understanding what I did wrong and right I have made many times the amount I lost and would have made on that trade.
Plan to win, plan to lose, learn to plan right and learn from it all. - 21151
One truth that helps is knowing how to minimize your losses. The technique is to start small and add on to the trade once it is going in your favor. This way you are more protected. When you lose you only lose a little but when you win you win a lot. When you take the time to set up a good trading plan you will find that you win more often then you lose. Strategizing puts you on the right side of probabilities and outside of the this is just a gamble realm.
Another key point is that you are going to lose as a trader that is just part of the market but if you can learn at least one point from every lose and write it down, your trading will grow exponentially. You dont have to lose everything on a losing trade, they can actually be some of your most profitable trades because they can lead to new insights that lead to greater successes in the future.
An example from a trader of this: I put a trade on and it went in my direction 20-30 pips. I then moved my stop loss closer to my entry point. The trade came back and went 2 pips past the stop loss and of course I was out of the market. Then the trade went in the original direction 250 pips. I learned more about setting stop losses on that trade than I had learned in the previous year. I also learned that I made a good entry on the trade and read the market right. By reviewing that trade and understanding what I did wrong and right I have made many times the amount I lost and would have made on that trade.
Plan to win, plan to lose, learn to plan right and learn from it all. - 21151
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