This is a question that may plague a lot of traders. Some of you might have heard things like “trade all of them” or “trade one until you master it”. These opinions can come from leaders in the trading industry thus leaving some newbies or even intermediate traders in the grey about which route to take. Which answer is the right one? Both…
Capital, capital, and more capital!!! The main issue when starting to trade and make a living from the markets. You know? To show off the flashy lifestyle with; the cars, the multiple homes, the luxury vacations to the Bahamas or Paris, whatever you fancy really.
It ain’t the size of the fight in the trade, it’s the size of the trade in the fight.
Position Size. Some traders have labeled position size or position sizing a crucial part of profitability using any strategy. You could have the world’s best strategy but if you bet too big, it wouldn’t matter because at some point you would incur a string of losses that wipe you out so you’ve got to find the sweet spot.
Most Forex traders only hear about the importance of journaling years after failure or even after a little bit of success, but you hear about it sometime in your journey in Forex trading.
Journaling is defined as writing or recording events that are happening, have happened or even the things you wish would happen. Usually, an internal thought process put down on paper or anywhere else you write.
A take profit (TP) is an order placed by a trader to close a position at an exact price for a profit. Take profits reduce the chance of adverse moves against a winning position, by automatically closing the position for a gain.
A stop loss (SL) is an order placed by a trader to close a position at a defined price, stop losses are used to limit losses on a trade. No trader can be right all the time which makes stop losses a great asset for protection against unfavourable moves.