5 Ways To Avoid Missing Trades In Forex
Missing trades in Forex can be challenging. Always leaves a bitter taste, especially when you are starting out.
It’s most frustrating because after having missed a trade, you automatically think of what your account balance “could’ve been,” and it’s always a shame to look at your current account balance after that.
Even though you will never be able to catch every single trade out there because, well… life happens, there are ways to minimize how often you are missing trades during your trading week.
Let’s go over some of the things I’ve found helpful in my own trading when I was consistently missing good trades.
Most platforms allow you set alerts so that you can be alerted via email or on your phone about movements that happen in the market while you are away from your laptop or wherever you usually trade from.
TradingView is one charting platform that does this really well. Although the number of alerts you can set is limited if you are not on a paid plan, you can still set alerts.
You can request that an alert be sent to your phone when the price of the pair you are trading hits a critical level, for example.
Set an alert that notifies you when a pair of moving averages cross over while you are away so you can check the market for opportunities.
Setting alerts is one of the best ways to relax and enjoy your life without the fear of missing trades.
Set A Schedule
If you are having trouble executing trades in Forex, sometimes it might be because you are chasing all the opportunities.
Set a time for yourself for when you want to trade.
Look at all the factors like your time zone, pairs you trade, and when the volatility is most present in the Forex markets. Learn more here.
Use that information to decide that you will be trading from 8 AM to 2PM, for example. Whatever happens after that doesn’t concern you.
You will find yourself escaping losses that you might’ve taken if you were trading outside this window.
Get Rid Of Distractions
We all have to admit our shortcomings if we want to get the hang of Forex trading.
If you get easily distracted, maybe don’t try and trade while binging your favorite series.
Make sure that you create an environment that helps you stay focused and on mission.
If that means finding yourself a “trading room” within your house or even leaving your home to trade in an office or a work-dedicated space, so be it.
Put the measures in place that will help you succeed and achieve consistency in your Forex trading.
Getting distracted can be a big reason you miss trades sometimes and if you know that is you, do everything you can to get rid of distractions.
Focus On Fewer Pairs
“It is much easier to watch a few than many” – Jesse Livermore.
I know what it’s like to want to cycle through every pair because the more you can trade, the more money you can make, right?
Unfortunately, that’s not what I’ve found to be the case. I made more money the LESS I traded.
The fewer pairs I traded, the more money I made. The fewer trades I placed, the more money I made.
I’m at a place where I trade predominately trade 2 Forex pairs and place MAYBE 1 trade a day.
This is not a lot for someone who used to trade almost 10-20 times a day which was A LOT more stressful.
I don’t know why it works, but the saying is very true.
Don't Let Drawdowns Discourage You
This advice needs to come with a disclaimer. ONLY IF YOU KNOW YOUR SYSTEM IS A PROVEN PROFITABLE ONE. If you’re not sure, don’t trade or at least not at full risk if you are forward testing.
Now that the disclaimer is out of the way. Taking a break from trading during a drawdown could be a mistake.
Many traders can attest that they usually miss the winners that come after a drawdown because they weren’t trading or got gun-shy because of the drawdown.
This is where your psychology plays a big part in being a profitable trader. Sticking to the system is hardest when you are losing money.
But that’s the time you need to stick to it like a wig in a hurricane. Those winners will come, and they will help you recoup that drawdown.
At the end of the day, trading is a numbers game, and all that matters is are your winners bigger than your losers, and if you don’t have winners… you’re losing.
Don’t bet the farm.
Don’t lose your shirt.
Cut the L.
Keep the W.