The Forex trading plan that you’ve created for such a long time can be easily abandoned for you to maximize your winnings when the market is going your way. You can do so at a fast pace. But for traders who have discipline, they easily shrug these opportunities. Why? Because they believe that bad trading decisions can make them lose even more.
Scaling as a risk management tool
Scaling towards winning positions will prevent FOMO or the Fear of Missing Out. It also helps in generating more profits as long as your trade idea is still active. One thing you have to remember is adding more to the position will make a bigger impact on the price movement. That’s when you are prone to emotional trading.
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If you think that the risk management plan that you have protects paper profits, consider taking part in your profit or scaling out. After all, a win no matter how small is still considered as a win. $200 of realized profits is better than $1,000 paper profits.
Don’t make hasty decisions. Home runs are not needed in FX trading
Bragging about your gains on social media can be a bit tempting at times. But you don’t have to put your eggs in one basket just so you’ll have something to brag about. Think of better things to do. Buy high and sell it much higher or you can trade in less popular assets with better risk ratios. This is more ideal for you especially if you are a new trader. Try to manage your risks right and do your research. Better opportunities will naturally rollover.
Winning trades still creates damage
Losing is not your sole enemy in trading. Overconfidence after a winning trade can also ruin your account. When you experience a string of wins, you tend to get tempted to start cut corners and even avoid the process that brought you wins in your previous trades.
Make sure you have a trading journal that you can check from time to time. Studying it will help you avoid making decisions that will affect your trades. Use those ideas into your trading plan and always follow them. Stick to it no matter what happens.
No need to rush
If you choose to trade, you must always be alert, focus, and concentrate. But this won’t be possible if you choose to spend all your day doing nothing. Aim for the highest performance but don’t forget to take care of your mind and body. Don’t neglect your health. Do some exercise and sleep well. This will keep you from making avoidable mistakes like trading the wrong position size or asset symbol.
Gain trading experience
In trading, practice doesn’t make perfect trades. But at the very least, it creates noticeable improvements. No matter how hard you try, you must accept the fact that you cannot achieve perfect results. Even professional traders can’t so it’s okay. You don’t have to win every time you trade to make a good living out of Forex trading. What you need is to push through with your tried and tested method as perfectly as possible.
