This article is brought to you by Forex Mo the Founder and Director of Forex Academy…
Now as you guys have seen from the heading that has caught majority of you the traders interest from the successful to the trying trader.
I never use the word unsuccessful as for those who attempt a still successor millions is not an overnight business it takes time to conquest great success and an inspiring success story.
As we all know trading comes with high risk, this is probably not the first time you’ve heard or read this in fact that’s the cause of the doubtful mistrustful and sceptical belief about Forex trading which drives many people away from acculturating wealth as a trader in other words the first key to success is trusting the opportunity rather than scepticism.
In my 8 years of trader are broken into two
4 years of deficits and 4 years of
Did you know reversing all the reasons that caused my deficits are the reasons to this here are the TOP 3 REASONS YOU STILL LOSE MONEY…
At number 1 is the HIGHLY UNUSED TOOL in trading and an IMMENSELY IMPORTANT ONE
STOPS or STOPLOSS
Now it is believed by the majority that stoplosses are the cause to losing trades and that you should never trade with a stoploss if you want to be successful
Ever heard the saying stop following majority ‘laughs’ heres why!!!
Stops actually keep you in the game and having properly managed/placed stops is key
Stops are often neglected by many newbees
I was once in the exact same boat to believe trades that are going wrong can go right
As much as that dose happen 1/10 if you place your stops well you’ll have just the edge
Now stops are here to keep us in the game where you place them is what matters, we can never get the markets right a 100% of the time and that’s why we prepare for the loss and where we place them this is accompanied by another Famously known method called risk to reward heres an example lets assume we found a trade on the famously traded pair EURUSD a break out trade lets assume break above support target is 50 pips up why not set stops at least 10-20 pips below the support price has to rally now break outs are caused by IMMENSE bullish/bearish momentum the trade has to work!!
A 20 pips stop for a 50pips gain
Nearly 2:1 risk to reward RISK $100 for $200
Now that’s smart trading my friends.
2 The famously spoken about is Risk management
This is one of the most lacked of all many newbees think millions are made overnight and often tend to risk huge percentage of their accounts an ideal risk for an account is 2% why use 2.00lots on a $1000 account for a trade just a 20 pip negative move will put you in a deficit of $400 thats 40% of the account pure madness and quick way of deflating the account when you could simply use 0.20 lots and have a loss of $80 which is a 8% loss see who stays in the game the slow,steady and disciple trader one who worries about gaining rather than how much he has gained
3 RISK TO REWARD
This is an immensely reason to successful trading risk to reward matter a lot
It is always and extremely important to know the range between your stoploss and your take profits that range is called risk to reard nothing technical or hard to do here these are simple and yet neglected rules
Now lets say we have a trade a buy touch on support 100 pips take profits thats a huge range from the entry level so we can now hold a fruitful trade with a good stop lets say 50 pips below the support line or entry level thats a wide stop a nice 2:1 risk reward ratio now thats a good trade risking 1 to get a double never take trades that have wide stops and tightened take profits thats just WRONG logically too….
I hope my efforts don’t go to waste and you guys take this intel seriously trading is game of discipline so make the change now!!!
Stop following majority only the few are successful always remember that.
I will soon publish my book on Psychology as it is still under work
Other than that
I wish everyone a GOODLUCK and a Good trading career ahead more articles like this are on the way IF THIS ONE HITS 1K LIKES AND VIEWS I WILL START A YOUTUBE CHANNEL to enhance your trading take care everyone…