Forex trading is not just about winning trades. To stay on track, you need to learn to accept losses too. The biggest disservice you might do to yourself is let your emotions overwhelm you. Once you do that, you will start losing all the profit you might have previously earned.
That’s what I want to discuss today. Just remember the old proverb – I may give you fish, but in the end, you need to learn to fish yourself.
Speaking From Experience
What makes me an authority on winning in Forex?
Though not all my accounts are in profit, I manage to stay on track thanks to religiously following my trading plan. This is a crucial point, as you can see from the two examples below.
Despite being two years old, this account of mine has been growing steadily.
It shows a good upward slope that forms the trend.
The second account is not that good, as it shows a spike down due to lack of stop-losses.
Overall, as long as you are able to identify mistakes, I believe your account will grow at a good enough pace.
So what are we supposed to do to keep winning in Forex market?
Trading is a discipline.
It is a long-term game of probabilities and you are a long-distance runner with a goal to stay on track for as long as possible. If you’re disciplined enough to stick to your trading strategy and not be emotionally attached to your losses, I think you will be making more winning than losing trades.
And that is the main ingredient of achieving profit.
Master your own strategy.
Constantly work on improving it, but do stick to core rules. You have to know your strategy inside and out and understand the market situation before you risk your money on a trade. You have to place traps that will be making pips for you.
Once the market conditions match your strategy criteria…
…place your trade, without the fear holding you back.
Capital Preservation/Risk Management
You should always manage your risk on every single trade you make. The moment you loosen your control over your trades, you allow emotions to creep in. And before you know it, you’re going straight into a downward spiral of hope trading.
Capital preservation should be priority. What does that mean?
Think of your capital as your account’s lifeblood. Without it, you obviously cannot trade and the more of it you lose, the harder it is to recover. Risk management and capital preservation are two sides of the same coin:
…you have to manage your risk…
…in order to preserve your capital.
Trading in The Zone
Successful price action trading is literally trading in the zone.
Every time I make the analysis and send trading signals, you may notice the word MEGATREND.
MEGATREND, is the best Forex trading system and best price action trading as we have accurate zones where we expect the price to react, either by rejection or bounce.
Due to the nature of supply and demand, we cannot only trade with levels, as both buyers and sellers are a dynamic category.
Instead, we should trade where historical buyers or sellers are aligned with the current buyers or sellers.
Scaling is a method of money management which allows you to limit potential losses and maximise potential profits.
Sounds good, but how does it work?
When you’re scaling in, you gradually increase the value of your position by adding into retracements and keeping your stop-loss intact.
Pick Your Trading Hours
Not every day is equally good for trading. Sometimes, you can see that the market is not moving at all due to bank holidays. Usually around 12am, the liquidity is thin and there is no point in opening any positions. Other days, there might be an important event, so the market might be in a range.
Sometimes, not having a position equals to having a profitable position.
The Forex market can be a very profitable place, but you must have a firm understanding of how to work within this environment. Trade on a demo account to get the feel of the market first and then move over to live trading.
Just remember that no one can be successful every time they make a trade. Put it simply, Forex trading is about stacking probabilities in your favor. Hopefully, by reading and adopting today’s advices, you’ve stacked another 5% chance.
Cheers and safe trading,
Cheers and safe trading,