What techniques/strategies do you use to prevent yourself from entering too many trades in the forex market?
I enter whenever there’s a signal to enter, and I’m online.
Once you’ve proved your system has an edge, it’s logical to take advantage of that as often as possible.
4 Likes
I use EA’s on trading
2 Likes
I have a list of currency pairs and if I am already in a trade with a currency then I do not trade that currency again. So, if I had an open trade in EUR/USD it would rule out any trading in any pairs that have USD or EUR in them. My list has all the combinations of USD, EUR, GBP, CHF, AUD, NZD and JPY with each other. This keeps the list managable, the spread small and the number of open trades down to 3 normally and four at a squeeze. Most of the time only one or two trades are open.
4 Likes
You can take couple of factors into consideration. For example, select only one or two pairs to work with. Find the best hours to trade those pairs. Have a unique analysis for your trades so you know what you are doing.
Beside theses you need to have a strong mentality. Have a full control over your emotions. It’s easier said than done
Stick to a solid trading plan and set strict entry rules.
Exactly, plus I use CAD as well.
Only open one trade at a time.
Typically, when you get a buy/sell signal on one pair you’ll get that same signal on multiple pairs due to correlation. Don’t fall into the trap of opening several trades all at one time, spread them out throughout the day/week.
Not all pairs are correlated, but an important news event will usually create a ripple effect across all markets, and if you’re on the wrong side of this then you’re in trouble.
It all leads back to money management. Always think about what you could lose, not what you might win. I would rather NOT make $500 than lose $500.
3 Likes
I have constructed a simple table in Excel which shows the 8 major currencies and how many long or short positions I have open on each or have an entry order pending on each. This means I will not be surprised to discover that I have 6 AUD positions open at the same time, nor 3 AUD and plus 3 NZD. Plus I can see instantly if I am planning to get both long and short on the same currency at the same time.
1 Like
If I find good entry/exit points I am in, no matter the count.
I always try and keep myself from becoming greedy throughout the day, but that’s only for my good days. My losses stop me from continuing on other days 
Thank you for sharing your approach!
Thank you for responding! I haven’t tried using EAs myself, but it’s good to learn from what others do.
Indeed, mastering emotional control is often easier said than done. It’s a continuous challenge but it’s also one of the most important aspects of successful trading. Thanks.
1 Like
Thank you for sharing! You’ve really put a lot of thought into managing your trades effectively.
Thank you! I’ll definitely keep this in mind.