How Forex Trading Can Make you Rich?

Discussion in 'Forex' started by Peter brandley, Jul 13, 2012.

  1. Hafizmd

    Hafizmd

    Oh, thanks for the explanation. It would be better if you wrote it at once with the link. I looked through search results and videos, but didn't get what did you mean exactly :)
     
    #221     Dec 14, 2016
  2. forex traders don't need fear closing


    Fear of losing can lead to further losses
    Fear of taking losses can ultimately lead to even more losses. The typical behaviour of a trader will be to close trades early, either when the trade has temporarily gone into a loss or a small win, and not letting the trade run its full course
    When a trader has a fear of losing, they try to avoid them. This can actually increase losses.

    For example, a trader may open a trade and place their stop, say, 20 pips away – based on the strategy they use. In other words, there is a technical or fundamental reason for it being placed where it is.

    However, a trader that is influenced by fear may close the trade prematurely, simply because the trade temporarily goes against them. So if the trade goes against them by, say, 10 pips, then the trade results in a 10 pip loss. If the trade turns out to be a winner, then the trader has just turned the winning trade into a losing one out of fear.

    Another scenario is when a trader closes their trade as soon as it has gone into profit, out of fear that they can lose that profit. If the trade then goes on to hit the target, then the trader has reduced a full winning trade down to a much smaller win.

    This behaviour ultimately turns a profitable strategy into a losing one, because the trader reduces the amount of winning trades and/or reduces the profit overall because of fear of losing.
     
    #222     Dec 14, 2016
  3. Mohdfx

    Mohdfx

    #224     Dec 14, 2016
  4. #225     Dec 14, 2016
  5. This is good for trading purposes indeed, if trying to flashback journey trading, rush in trading often causing floating prolong and less effective for trading, only one obstacle is to determine best timing to entry
     
    #226     Dec 15, 2016
  6. BikerTT

    BikerTT

    One of the most useful things I did was to reduce the number of trades I entered. I limited myself to 4 trades a day. This really helped me focus on the best trades.
     
    #227     Dec 15, 2016
  7. Forex Trading requires lots and lots of practice, you could become successful but for that you need to have patience and discipline.
     
    #228     Dec 16, 2016
  8. Esha.J

    Esha.J

    With knowledge and skills a person can win any business no matter which technique you use for it. Because you have mind which can handle it in any situation.
     
    #229     Dec 16, 2016
  9. Esha.J

    Esha.J

    Forex trading requires more discipline with proper management because practice can trading your strategy not your emotions.
     
    #230     Dec 16, 2016