You have to be really careful while building your trading strategies. Do mention your entry and exit points clearly and follow them when you are in the live market. Understand the importance of not getting distracted from your trades and stick to what you have already decided instead of deviating from what you were already doing.
To add to my earlier answer I also think the ability to fit in around your lifestyle and time constraints is vital. Trading is something that takes a lot of time to get right. If you can't get it to fit around your life you will burn out and lose interest more quickly.
If you can't spot the liquidity then you are the liquidity.
I think that all traders have to be glad with their results, because when a trader isn't happy with the result, then he/she lets the emotions take the control over him/her. If we speak about these aspects, then I would note that traders should wiesely approach to the task of describing their opinion toward these aspects. Of course, today traders aren't able to learn and practice, because they're eager to receive fast money. However, I believe that there is no fast money in trading at all. The main feature of trading activity is the ability to develop your skills until you become a real professional.
Well, in my opinion, the right combination of all these factors lead to success in forex trading. Most importantly, risk management and expectancy play key roles in determining trades and success while trading. It is essential to analyse a number of factors before making trades in order to minimise losses and be a long-term player in this field.
No doubt these are some important aspects and should be included in your trading plan. Trading plan acts as your roadmap and when you mention your risk tolerance, expectancy, Risk to reward ratio, drawdown etc in it you are able to follow it efficiently.
I have large drawdowns but the reason I have $500k account is that I use VERY high-risk reward ratios. As high as 55 times. This level cannot be achieved without knowing the target price with absolute certainty. Once I was able to target price reversals 100s or pips in advance sometimes even 1200 pips as with EURNZD I can set high-Risk Rewards. See the past charts that I have not removed yet.
It’s not worth trading if you don’t have a money management strategy. The market is so alluring that you may want to put all your money into it. But it would be done efficiently only if you have a well-built money management strategy.
It has to be your strategy. Your strategy is not less than the soul of your trading plan. It doesn’t only tell you when to move but also when to stop. It tells how many trades you should execute and when you should close your trading positions. And it also tells you how much you should use per trade and how much you can afford to lose.
Risk management is surely the most important aspect of your trading strategy. When you have a risk management strategy handy, you know how to handle losses and how to keep trading in all market situations.
According to me, it has to be staying consistent in profit making strategies. It is every trader’s end goal and the reason people invest. A strong risk management plan is necessary to make it for a longer period in the tricky market conditions.
Most important in my opinion are risk and money management techniques and you can’t achieve success without employing them. Here are a few factors that should always be considered before making trading decisions:
Having a risk reward ratio is essential
Using stop loss
Backing decisions with a set of smart trading strategies
Also, it is always beneficial to plan entry and exits before entering a trade
HIGH RISK WARNING: Valutahandel innebär en hög risknivå som kanske inte är lämplig för alla investerare.
Hävstångseffekten skapar ytterligare risker och förlustexponering. Innan du bestämmer dig för att handla med utländsk valuta bör du noga överväga dina investeringsmål, din erfarenhetsnivå och din risktolerans.
Du kan förlora en del av eller hela din ursprungliga investering. Investera inte pengar som du inte har råd att förlora. Utbilda dig om de risker som är förknippade med valutahandel och sök råd från en oberoende finansiell eller skatterådgivare om du har några frågor.
Alla uppgifter och all information tillhandahålls endast i informationssyfte och är inte avsedda för handelsändamål eller rådgivning.
Tidigare resultat är inte en indikation på framtida resultat.