29th January 2018 at 5:42 pm #5574
Overtrading in Forex is something that makes you feel happy but you will not make money. This article is important for people who think that they will trade day in Forex. When you are placing a lot of trade in Forex, let’s say for example you have placed 10 trades on the market, you cannot expect that every trade will be a win in markets. There will be much loss in your trades and you have to accept that. If you have placed many trades, it is the simple calculation of the probability that some of your trades will be a winning. It is like tossing a head in your toss when you toss the coin 10 times. You will get ahead one time and you know it. In Forex, the simple probability also works but many people do not understand the amount of the loss they are having behind this wins. They have won some of the trades and they lost most of their trades. This habit of overtrading makes you lose more money in Forex and this article is going to tell you why it cannot make you a successful trader. We know it looks impossible but this article will tell you why overtrading is a vogue concept in Forex.
Emotional approach to trading
Before you even think about trading as your full-time profession you need to ask yourself whether you can control your emotion or not. If the answer is NO then this industry is not the perfect place for you. People in the United Kingdom often consider trading as the most complicated task in the world. So if you don’t learn to control your emotion than chances are very high that within a short period of time you will lose all your investment. Most retail traders say that they are doing everything to become a profitable trader yet they lose money. But if you see their trading history then you will notice one thing common in every single one of them. They are always over trading the market.
Trading is all about precision. You can secure whole month from single winning trade. Look for price action confirmation signal in the higher time frame since it is one of the easier ways to save your investment. Never try to risk too much of your trading capital to secure big profit. Learn to trade with manage risk and everything will go in favor of you. Just focus on the quality of your trade setup in your trading platform.
The more trades, the more risks you take
When you place more trade in Forex, you take more risks than you can take. If you can take the risks of 5 dollars, overtrading can make you take the risks of losing 10 dollars if you have only 10 dollars in your account. We know that you will, be happy with the profits that you have made in Forex but is not right to overtrade. When you analyze your trades, you will understand that you have taken more risks in the market and if this does not pay off, you are going to lose your money.
Profit is not related to quantity
Many people think overtrading make profit because they place more trades. When you have more men on your team, you are supposed to win a match but it is not a game. Making your profit is not related to the quantity but it is related to your mastery of trades. Many people are new in this market and they have no experience to trade the market. They are disciplined and they take courses from the professionals which heighten their quality of trades. Professional traders follow this strategy and they place fewer trades and makes more profit than the other traders. They perfect their trades and do not try to place trades when there is a trend in the market.
13th February 2018 at 7:07 am #5626
Overtrading is really a no no because it will ruin your pocket. A lot of traders tend to overtrade whether they win or lose, but they end up losing the profits they have already earned. Personal I stop trading for a while and use a demo account whenever I feel like my strategy is not working anymore. I join Alpari’s fx trading contest and have actually won real trading funds.
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