Never let your emotions to trade the market

By admin, December 8, 2018

How many times have you placed your trade only to regret the fact you have not decided on your strategy? If we want to know from the traders, we will find that most of the traders do not think before they place the trades. They think as the prices are always going up and down, anything will be good for us. If we place our trades, the price will go up or down and we can make the money. The thing is it does not go as you have planned. You have seen the trend going up but when you place trades, it started to go down and down and down. You close your trades and save your money. This is the result of jumping on the gun. You do not think or prepare a plan what is going to happen when you will take the trades. This article will tell you what this jump on the gun says about the traders. If you can avoid this style, you can place better trades.

Control your emotions

We all know Forex trading is a very profitable business. You can easily earn huge amount of money even after making a small investment. Brokers like Saxo are offering high leverage trading accounts to their retail clients. If you can use the leverage properly you can easily make a huge profit from this market. Sadly, the new investors fail to control their greed in real time trading. They simply ignore the logic and analytical data. The moment they start taking trades based on emotions is the very moment they start losing money. You must learn to control your emotions at any cost or else, becoming a successful trader will become very hard for you.

Follow your system

Everyone needs a valid trading strategy to place their trade in their online trading account. You can easily make a consistent profit from this market even with a 60% win rate. If you lose some trades in a row, consider them as your business cost. Stick to your rules and you will be able to understand the proper procedure of trading. Try to write down the details of the trading plan as it will help you to make a better decision at the complex market condition. Regardless of the condition of the market, never break your rules.

Think before you place trades

Jump on the gun does not say you need to have a gun to trade in Forex. It only says you should analyze the chart, the volatility, make a strategy and think of all the expected results before you are placing trades. It tells you not to place a trade without a strategy. You need to analyze the volatility and trends. If the volatility is good, you need to know if this condition is going to last long. Do not forget you have to overcome the spread that your broker is taking from you. When the traders are placing trades, they forget the spread and they think they will start making a profit with the trend. They do not remember the starting level will be some pips down in the chart and the trends need to be favorable for them to overcome the spread.

Limit your expectation

It is common for the traders to think they will start aiming money like the professionals when they will invest in Forex. It only takes them some trades to realize it is not as easy as they have thought. You need to find the right strategy with the right plan to make money. Most of your trades will be lost because you cannot understand the trend. When you will understand, the good trends will not come. It is a tug of war between your expectation and the result and you should not ump on the gun. If the trend looks good to you, do not place trades without knowing if they can give you profit.