(Watch this video for learning three steps to Profitable Trades
There are various ways to make money in forex day trading. Some people take pride in taking risks with a high percentage of their money and profiting, other people work slower with only a portion of their money and make some pocket money. To earn with forex day trading, it is important to have a good forex trading system in place, you can use to determine entrie and exit points for your forex strategy, read this article till the end if you don´t have one already!
Most people think that forex day trading is risky and the objective is to suffer big losses. Wrong! The real objective is to suffer few losses and keep your winners for ever. Of course, people suffer loss, but in most cases, people suffer few losses and keep many winners. Here are some ideas on how you can earn while suffering many losses.
Enter low exit high – You don´t want to enter a trade after the price has risen, as there is a good chance that it will start falling now. Instead wait till the price went down to enter a trade, this will better your chances that the price will rise again after you make an entry!
Be quick when you have a successful trade. Some people tend to wait before taking a new trade. Taking too long might mean that a trade will be deleted from your list of trades because it is not profitable enough. Others start their new trades with the intent of suffering loss from the very start. This is bad advice. The point is to suffer few losses and keep your winners for the long haul. It is not a risk worth taking.
Make sure that you take only high probability trades. High probability means high profit potential. It does not mean that a trade will be high probability every single time you execute it. There will be occasions when the trade will fail. In that case, take less frequent trades.
Don’t enter a trade from a position of fear. The opposite of fear is hope. The key to day trading is hope. If you see a trade with hope in your eyes, take it.
Know your objective. In order to keep your hope alive, you need to know what you are hoping for and what you are hoping to avoid. Know them now, before you enter the market.
Practice patience. Practice patience in your trades. It will pay off when you take live trades.
When you know what you want, and when you know what you are hoping for, there is a limit to the amount of pain you can take. You will suffer few losses when you suffer few losses. When you suffer few losses, you will continue to trade and keep your winners for a long while. When you suffer few winners, you will start to lose your capital.
One of the secrets of the successful day trader is that they avoid losses by being fast in losses and patient in wins. By being fast in wins and patient in loses, they can suffer few losses and keep their winners for a long time. If they avoid losing at all costs, and they never suffer few losses, they won’t have much pain in winning and won’t have much pain in losing, but they will have losses and eventually many of them. If they suffer few losses, they will be able to keep their winners much longer.
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