Author : Daniel Su
Many people want to make as much profits as possible from the forex market, therefore they always want to be in the market so that they will not miss any trading opportunity Is this the correct way to trade forex?
The fact that 95% of the people lose money in forex trading is because they lack of trading discipline, money management, patience and most of all, they are too eager to trade In other words, they are trigger happy Forex trading is about high probability trade setups To win in forex by trading many times a day is not easy at all You are lowering the probability of winning a forex trade
You can be those short-term traders and scalpers who make a few profits here and there but receive a lot of stress in return or be a trader who takes in only one or 2 trades per week and able to satisfy your monthly needs
Let me give you an example Trader A needs to trade everyday to make 10 pips per day(out of 20 trading days) in order to achieve 200 pips per month Trader B only needs to trade for 2 weeks which can make him 100 pips per week Which one will you choose? 80 percent chose the latter after I asked them this question
A lot of people start forex trading with the first method because they want quick profits from the market or they lack the confidence that the trend will sustain Each individual has their own preferences, so I can’t say which is wrong and which is right
But if you have been trading forex for quite sometime, you should have realized that often a perfect trade setup is the one that you are looking for You know that you can make an excellent living from forex trading if you are able to find just 1 of the ideal trade setups per week
I personally use some forex technical indicators to detect the high probability trade setups and will make sure that those indicators are all in the same direction before I decide to trade I do not like to trade for small profits because firstly, I have a high risk to reward ratio (profit target of at least 60 pips if my stop loss is 30 pips) to meet Secondly, I only go along with the real trend, and it’s the real trend that brings me the big profits
I understand that some people will disagree by saying that a forex trend does not occur everyday That’s the point I want to prove – there is no real trend everyday, that’s why I only trade once or twice per week, or even once every 2 weeks But it’s enough for my income
The main point I want to get across is that you only need a few high probability setups to make some excellent returns
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