How to wait for the best trades

How to wait for the best trades

We all know trading is all about managing your risk. The novice traders start their career with a great level of patience but after trading for few weeks they become frustrated. They always try to overtrade the market to make more money. But do you really think overtrading will make you rich? To be honest, overtrading is one of the major cause of losing money. But staying on the sideline line very hard. Especially when you high leverage trading account. The experienced Aussie traders often say staying in the sideline is thousand times better than losing money on low-quality trade setups. Today we will share some amazing tips which will help you to execute the best trades only.

Maintain a trading journal

The new retail traders don’t understand the importance of the trading journal. They are always placing random trades without having any rational logic. But if you start following trade journal, you can easily find your mistakes by assessing the past trades. But this is just a simple benefit of having a journal. Your past trade data will help you to understand, you don’t have to trade more to earn more money. A few big winners are enough to secure your whole month. The human brain works in a very complex way. You have to reprogram your brain so that you can only concentrate on quality trade execution.

Never execute more than 2 trades

You should never execute more than 2 trades in a single day. And the maximum number of open trades should never exceed the number two. So why this drastic cap on your open trades? The idea is very simple. If you focus on low-frequency trade execution, you won’t consider the low-quality trade. In your subconscious mind, you will be looking for the best trades. On the contrary, if you trade all day long you will never understand the difference between quality and quantity.

The novice traders often start their trading career with real money. But this is another key reason for losing a big sum of money. You need to open the fx trading account with the reputed broker like Rakuten. Demo trading accounts are often considered as the perfect platform to master currency trading. Demo trading environment will give you the perfect platform to master currency trading profession. Overtrade the market in demo environment and you will understand the consequences of high-frequency trade execution.

Use the price action signal

Those who trade the market with indicators are often known as aggressive traders. The indicators can give too many trade signals to the traders. So it becomes really hard for the novice traders to control their emotions. Due to this fact, price action trading strategy is widely used by the experienced traders. It helps them to trade with managed risk. Price action traders can also identify the high-risk-reward ratio very easily. There is beauty in price action trading. You can easily trade with big lot size since the trade setup usually has very tight stops.

Psychological development

Last but not the least, psychological development is the most important aspect of currency trading profession. You need to check your emotions and find the best trades. Those who have extensive experience knows very well, emotions have no place when it comes to Forex trading profession. You have to train your mind to embrace the losing trades. Even if you face losing streaks you can’t overtrade the market. A simple 1:4 risk reward ratio trade setup can easily cover a number of losing trades. You should have that confidence to find such trade setups. Confidence has always been the key to success in any profession. You need to believe in yourself to master the art of currency trading profession. Last but not the least never trade with the money that you can’t afford to lose. And focus on quality trades only.

Categories: Finance

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