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Boredom And Forex

 
 
 
 
 
 
 

Today, we will show you some of the key factors helping forex traders to achieve relatively stable results.

Probably, the information you could acquire here today won’t be the most entertaining fact in your life, but in case you can implement some of them into your business strategies, then you could encounter not only significant changes in your trading mindset within a short period of time, but also in important trading decisions.

So, what do you need to do to finally achieve stable results in forex trading?

Don’t trade a single market only

A number of traders (not only newbies but also those experienced ones) make one big mistake when they try to become professionals by trading only a single currency pair. Thanks to this fact, usually, they open relatively big trading positions in such a pair (in relation to the size of such trading account), striving to achieve higher profitability.

However, higher profitability potential is also related to a higher risk of losses, supported by the fact that the trader is making a single stake (trading at one market) and if any unexpected event occurs on such market, it could have adverse impact not only on the trading account, but also to the mental stability of traders.

Extend stop-losses and take-profits

You could be thinking, why the market hits your stop losses all the time? However, the answer to this question tends to be relatively simple. These days, traders tend to follow the trading methodology of banks, however, they don’t realize that, in spite of the banks, they don’t have “unlimited” equity.

Thanks to this fact, banks may balance certain losses by a significant increase of traded volumes, thus achieving, in spite of the others, considerable trading advantage.

The extension of stop losses has numerous advantages. The first and the main advantage is, that the volume of deducted fees is reduced frequently (fees for opening of positions) resulting in saving portion of funds for trading.

Another big advantage is that the trades tend to last relatively longer and so the trader has more space for their decisions, not being under such psychological pressure as in case of “faster” trades.

Note

It would be relatively senseless to increase potential losses for your trades (shifting of stop-losses further) while keeping the same potential profits. Therefore, take-profits should be shifted more as well.

Let’s become bored

If you would really like to achieve stable results, in fact, you should become “bored.” Wait! Don’t start to think that trading is boring. For sure not!

Nevertheless, extreme trading only on the basis of the fact that the trader feels like action is needed is often his first step to hell. So, what does it mean that you should become “bored”? In simple words, a large part of trading is about waiting for the right moment.

And that’s something, let’s be honest, not very entertaining. Waiting, reduction of trades and wider stop-losses will result in you becoming bored to a certain extent, but on the other hand, this approach could make you a better trader – and that’s exactly the main point at the end.

Conclusion

These days, there are numerous methods to trade. However, regardless of the fact which strategy the traders are going to opt for, there are always approaches which not only trading strategies may be optimized with, but also, the trading skills of traders may be improved with, being the top benefit for traders naturally.

If you would like to try out trading with top tier trading conditions and professional forex broker, don’t hesitate to try our demo account that may be open on our website completely for free and free of any risk: www.purple-trading.com

We wish you many profitable trades!

About the Author

Team Purple Trading

Purple Trading is a true and 100% fair ECN / STP forex broker providing direct access to the real market. High speed orders execution, no trade-offs, no limits for any type of trading, the most advanced trading technologies. Explore more about Purple Trading at www.purple-trading.com.

CFDs are complex instruments, carrying a high level of risk of losing the entire investment as a result of leverage. 73.2% of retail investors lose their capital when trading CFDs with this provider.

(This value was set within the period from 01 October 2018 to 30 September 2019.. You should carefully consider if you understand how CFD instruments work and if you can undertake such high risk of losing you initial investment.

Trading forex exchange with margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. You could lose part or all of your initial investment and therefore you should not invest money that you cannot afford to lose. Seek independent advice if you have any doubts.

Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary, and does not constitute investment advice. L.F. Investment Limited will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Purple Trading is a trade name owned and operated by L.F. Investment Limited., a licensed Cyprus Investment Firm regulated by the CySEC lic. no. 271/15.

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