When the traders are losing and winning in the Forex, at the end of the day, when they close their trade, they find out they have lost money in their account. It is normal. It is not your fault because you have lost many trades. If you have a correct plan and risk management, you can win money and make a profit even if you have lost many trades. The traders in the Forex do not take this in their mind and lost trades in their online trading account. The trades they have won in the market become valueless because of the losing trades. In this article, we will try to enlighten you with the idea why you should always trade with a bigger reward than your losing.
Seeking bigger rewards
It is human nature to take risk and to place a trade. Even if you are given an option to accept a fixed loss or trade in the market with greater loss and profit, you will always use the option B. It may seem unfair to you that we are trying to tell you that traders do not think rationally in the market. What happens in the market is everybody is here for the money. They want to make a profit and it is very sad for them to accept a loss. They will trade for a bigger loss in their online trading account if there is a profit of winning money, but they will not accept a fixed loss.
As a trader of Forex, you should seek bigger reward in your trades. We do not tell you to close your trade. You should trade in the market. You will also lose and win in the market. If you are seeking a smaller reward than losing, you cannot make money. For example, if you are using a plan to win 2 dollars for your winning trade and lost 5 dollars for your loss trade, even if you win five trades, you only make 10 dollars. If you have three loss trades in your online trading account, you will have lost 15 dollars. If you have sought five dollars profit in your winning trade, you could have made a good profit. If you do not seek bigger reward in your winning trade, you cannot make money in Forex.
Price action trading strategy
Price action trading strategy is one of the easiest ways to become a profitable trader in the forex market. If you look at the professional traders in the Singapore then you will notice every single one of them are trading the live assets by using price action confirmation signal. But in order to do the perfect technical analysis in the market, you will need a robust trading platform like SaxoTraderGo offered by reliable broker Saxo. Unlike the novice traders, the expert price action traders always aim for high-risk reward ratio trades in the market since they know this is one of the key factors to remain profitable in the forex market.
Conclusion: Try to get a big reward in your Forex. Take your loss small and get your profit big in your trading. As a full-time trader, it’s very normal that you will often face some losing trades in the market but you need to embrace your losing orders just like you do to the winners. When you execute any trades in the market try to trade in favor of the long-term prevailing trend using the price action confirmation signal since it will help you to execute high-quality trades in the market.