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.
New to the Forex trading journey and really just care about making money? Nothing more. Just the lifestyle, flashy and luxurious. Fast cars. The parties. Freedom. Financial freedom. All the things a lot of YouTubers will show you or those who claim to be traders on social media because they’ve been trading for a WHOLE 2 MINUTES!!!
Please don’t let the lifestyle fool you. Whether you are new or you’ve been trading for 3-5 years and you’re struggling to find your feet.
A skill not to be underestimated
Ever thought to yourself what makes someone greedy? What makes someone want more than what they set out for or what makes them take more than they need? I have. Plenty of times. Maybe even judged them a couple of times. Until I caught myself being greedy. We get greed for different things. And as Forex traders we get greedy to extract the VERY MOST out of the market.
Think of trading in probabilities! This is one of the most used statements in trading education, the reason being it is true. But what does “think of trading in probabilities” mean. By the end of this article, you will have an understanding of how probabilities apply to the market and why focusing on the odds in trading will make you more profit.
Ever seen someone bet all his chips at a poker game, although he knows that he doesn’t have a winning hand, but he does it anyway? Some of you maybe, but most of you not. And you’re probably thinking ‘why on earth would anyone do such an irrational thing to themselves?’… Well, how about we ask ourselves the same question.