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ARE YOU FORCING TRADES?

At some point as a trader, you must have felt like the market is simply out to get you. Sometimes every trade you make goes against you and basically every time you place a trade, it immediately goes into a loss and then never recovers. You take your pain with your stop and then almost immediately after you are out it moves in your original direction and had you extended your stop, the trade would have come into profit. Basically, at times, nothing goes your way.

We have probably all been there in this position, I know that I have, what do I do?

  • Firstly, I take a step back. I may take a few days break from trading to regain my focus.
  • What I do NOT do is revenge trade.

If you revenge trade, you will more often than not be forcing trades.

Rules, TRADE PLANS, RISK MANAGEMENT which, are all crucial, critical success factors for trading go out of the window.

You have to remain calm, through the frustration. As I have already said, maybe a good time to take a break away from your computer.

It is all about MANAGING YOUR EMOTIONS. This is what separates consistent good profitable traders from the rest.

Here is my approach, and this will come as no surprise.

Examine your TRADING PLAN, entry and exit levels, styles of trades, times of trades, position sizes, stop placements and your overall risk parameters. Ask yourself – Did you adhere to your plan? Sometimes when you have unrealistic goals from the fx market it can really affect your trading mindset.

Were you chasing the market?

You have to let the market come to you. If you do not – you run the risk of placing your broker account under so much pressure that you run the risk of blowing your account.

Basically, as with all things related to Forex trading, it is boring repetitive actions and controlled emotions that give you the edge as a trader. Do not veer away from the tried and tested repetition. It works.

Use the Platinum Methodology and read this at least 2 times a month to refresh your focus.

If you veer way from the disciples you have set in place via your TRADING PLAN, you are asking for trouble.

The top 4 critical points in forex trading

Learn To Trade Forex

Some are panicking and some are taking advantage of the chaos and making some serious money. Recession? Maybe. I got into forex trading around 1997 so I have seen a few major market crashes and have experienced the major crash in 2008 and made some serious money in some of the months. In order to learn to trade forex properly, please read this forex blog carefully.

Here are some critical points which will assist you in your trading:

Do not keep your trades open for long periods of time

The market saw massive volatility and it seems to be correcting at the moment, but nothing is fully clear. Nobody knows how the market is going to surprise us next and how the market participants are going to react. The market direction MAY HAVE changed, but there still is no confirmation. Therefore if you are NOT in a long term trade, don’t get into one. We are talking about the currency markets here. For stocks and other charted markets, different forex trading strategies apply. Do not get on the bandwagon of short selling just because you see the market bears reacting. Stop Hunting is the subject for the next 2 days so beware and this me talking about stocks it’s called portfolio rebalancing.

Learn to Trade Forex – Trade the tops and bottom of ranges and breaks and retests of the tops and bottoms

learn to trade forexWhile trend trading might be tempting at the moment, as I said before, the market is not as clear as we would love it to be at the moment. You know my rules when in doubt stay out. My currency flows are all pointing to different directions when it comes to trends. However, one thing that seems to be happening is range. So for us it is simple we will trade the top and bottoms of the ranges on a daily charts with 35 trading Pips stop losses. From today onwards till the market gets back to normal, as soon as we are up 30 Pips we will move stops to break even and take advantage of the market short term.

 

Using high leverage and larger position sizing out of greed is a NO NO NO!!!

 learn to trade forex - forex educationSince the markets are not really foreseeable, you have to learn to trade forex and try to avoid high leverage so if there is a sudden change in the market, you don’t end up wiping up your account. As we covered in the various articles on the Platinum blog, leverage is a double edged sword. While it can magnify your gains, it can at the same time multiply your losses as well. Platinum Traders should already know to use high leverage when they have at least 95% confident in the market direction. It is safe to say that no one really has confident in the market direction at the moment. The one thing I do not get on with any traders that loose their account within just one day I mean we are all mature here for an example you have a rule DO NOT RISK MORE THAN 1-2% how dare you even use more risk than this…If you are I suggest you should not be anywhere near trading as you will never make it blowing accounts happens once or twice when you are in your infant stages. If you are blowing accounts after 2 years of active trading.

I would love a personal chance to speak to you and believe me it will not be pleasant but it would be required.

learn to trade forex - freeConsultation

Pay attention to stop losses on trade and trade frequency

While in normal times we are a fan of identifying a strategy and letting the markets run our position, this strategy is no good during current market conditions. Trading short term means you have to at least check your positions from time to time and be prepared to get out if the sentiment is not on your side. While you have set a stop loss for your position, you would still want to check the market sentiment, and if it is not strong enough to reach your target, you are better off just getting out with lower profit than staying in and hoping for the best. So, learn to trade forex by reading the blogs at Platinum Trading Academy and book a free consultation with Platinum senior traders to get expert advice today!