As Forex traders, we all love to trade. We love the excitement that comes with opening a new trade and the anticipation of what it will bring. We love waiting to see if our bet pays off, and especially, we love seeing the market go our way. I’m not saying that we don’t care about the profit but sometimes the fun can get in the way of making big profits. Many times, ignoring your passion for Forex trading and deciding to “sit this one out” can be what makes a mediocre trader into an excellent one.
Statistically, traders who enter fewer trades make more money. Of course there are some extraordinary traders who can make a profit anytime anywhere, but most traders who trade without self discipline will end up with more losses than profits. When I make a profit from a trade, the first thing I want to do is enter another trade, and another, and sometimes I find myself losing money from trades that I wouldn’t have made in different circumstances. The exhilaration that I get from a successful trade clouds my judgment about what is a good trade, which usually leads to more and more losses, until I lose everything that I have earned.
The key to successful Forex trading is to be calculated and always on top of your game and the way we achieve these goals is by trading less. If we only enter trades after a careful analysis of the market, and only enter the trades that we are completely sure about, then our profits will go up enormously.
So in order to increase our profits we have to have a great amount of self control and I have to say that it takes some of the fun out of Forex trading. I didn’t say it would be easy but there is a way in which we can have a little of both worlds. These days many brokers offer demo accounts in which we can trade fake money, and therefore don’t have to worry about the losses. My solution is to open a demo account where we can make risky, impulsive trades and enjoy our Forex trading, while on the real market we only make trades which we are sure about. In that way we can maximize our profits without missing out on the excitement that comes with Forex trading.
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