The More You Trade, the Less You Can Make
There are many things that we can learn from the movie. If you have watched the movie where a panda fights for his villages, you should know many quotes from the movie. One of the pieces of dialogue in the movie “Kung Fu Panda 3” was given by Oogway. “When will you realize, the more you take, the less you have?” If you look into your life, you will find that it is also true in Forex for the traders. They spend their time trading the market but they do not realize they will have less money if they place more trades. This article will tell you why you can make less money if you place more trades. The concept is to make more profit by overtrading but it does not happen for the traders.
Successful traders of the Forex market
Those who are successfully trading the Forex market knows the importance of quality trade execution. The institution traders never spent 24 hours a day to find good trades. They simply focus on different trading sessions and trade the market with discipline. Nowadays people in Singapore are also actively participating in the Forex trading profession. But the majority of new traders don’t really know how to develop themselves as full-time traders. Instead of investing money on, focus on education. Try to find a professional mentor who will give you the perfect guideline to trade. This doesn’t indicate a fancy paid education will automatically turn you into a successful trader. You will have to do hard work and learn the different steps of trading.
Focus on quality
Quality trade execution should be your first priority as a new trader. Instead of using the lower time frame, start analyzing the data in the higher time frame. Never mess up yourwith indicators and EAs. Try to use the key support and resistance level to spot the best trade setups. If required, use the price action signal to acquire precision in live trade execution.
Every trade is a risk to your investment
You need to know first that, you do not place the live trade without taking risks. The professionals also trade in the same way and they have to take. If you lose trades, you will lose money. When you are thinking you will take all the profit from this trend, you also need to think if the trends change. The trends are not fixed and it is hard for traders to tell when the trend will change its way. If you have placed many trades, it will hard for you to make a profit at every trades. Some of the trades will be lost and you will have profit only in a few trades. The more you try to make a profit by placing many trades, this concept will not work for you. Increasing your profit needs to be done by small trades with a small profit. If you set your profit goal too high, you will lose more money than you have made.
Winning and losses are not fixed
If you have worked hard to develop the best strategy, you do not know if you will win the trades. There are always some risks and that is why traders place small trades. They do not want to take risks without knowing if they have a good chance of making the profit. The losses are not fixed and also you are not guaranteed to win. You may win money with a strategy but if you place many trades with the same strategy, you can also lose the money. The trends are always changing and the same strategy cannot make all your trades win money. You should be happy when you win a trade and take a break. Some traders get impatient and they place as many trades as they can, and lose all their money.