Who speculates loses in forex trading

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Who speculates, loses. Fact is: There are no successful speculators! It is not possible to realize long-term profits through speculation. Do not be a speculator! Be a trader!

The answer to speculation is Short-Term Scalping (the very short-term trading of markets). The probability of a profitable trading day or week, is greatly increased by short term trading: lots of small gains and even smaller losses.

Learning to love losing

This rule sounds strange at first glance. What does it mean: "learn to love losing" ? Are you stupid ?

No! We are not stupid! What we mean by this rule is this:

Accept the fact that you will have losing trades during your trading day! Close these losing trades as soon as possible and learn to be happy when you recognize a bad trade in Exness mt4 download and get out of it quickly. Following this rule will save you a lot of capital and make you a much better and more successful trader.

Sideways Markets

This rule is based on the theory of capital flow. It is trading capital and an imbalance of buy and sell orders that moves the markets in one direction or the other. A preponderance of buy orders causes markets to rise. A preponderance of sell orders makes for falling markets.

When prices are stagnant, i.e. not moving much or at all, it means that market participants are satisfied with the ratio of buy and sell orders at the moment. You usually have this phase several times per trading day.

During these market phases, you don't want to be in the invested, because the market is not moving anywhere. Being invested during this time is a waste of time and emotional energy. Here it is best to wait until the market moves again in one direction or the other, and then reposition yourself. Of course, long term trades over a longer time frame are an exception here.

Avoid large losses

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Big losses keep you from ending the trading day in profit and erase all the small gains you worked so hard for. Moreover, big losses damage them on a psychological and emotional level. Because regaining the self-confidence that was destroyed by a big loss takes time.

Small Gains

A small gain every day is enough. You should have a fixed goal for each trading day. If your goal is to make 10 pips in the Dax every day, where one tick is 25 Euros for example, your capital will increase by 250 Euros every day. This may not sound like much to some people. After one year, however, your portfolio would have increased by 76,500 euros. Not necessarily bad or ?

It is amazing how fast your account balance increases, if you make only a small profit every day. As your experience and account balance increase over time, you can try to make, say, 15 pips a day, or increase the position size to 2 Dax contracts. Provided that the new position size is still in your comfort zone.