Why You Should Focus On Quality Trade Execution
Traders have a common belief that if they trade in the Forex market for a long time, they can make better and more profit in Forex trading. It is nothing but only a misconception of trading in this investment sector. Making a profit in Forex has nothing to do with hours or times of your market trading. If you want to make money in Forex, you should trade for as less time as possible in the market. It is very likely that you will lose your money when you are staying longer in this market. However, over the period of time, you will definitely gain some experience. But if you don’t spend quality times to educate yourself in the finance industry then it will be nearly impossible for you to make money even if you trade for decades. But once you start learning all the details of this market. In our article, we are going to tell you why as a trader you should not spend much time in trading.
The market can become volatile anytime
The first reason that you need to trade the quality trade setup is that of the extreme volatility of the market. Every day these markets of Forex are changing and traders lose a good amount of money when they lose their trade in Forex. When you are staying for hours to make a profit in Forex sector, remember you are only taking risks. The reason that traders always tell the traders to short trade in market and place less but quality trade is for this reason. Professional traders know traders can lose their money anytime in this market. If you think trading in Forex for 4 hours a day will help you to learn something new about the market, you are very wrong. Trading and learning are totally different. The more you will read, the better chance you will have to make money. On the contrary when you over trade the market you are simply increasing your risk. So focus on quality trade setup and invest more money and time in Forex education.
Less is more in Forex
It is very much true for Forex traders that if you execute less trade in your online trading account then you will have a better chance of winning. The less you are going to trade in Forex markets, the more you’re going to be safe. In many of the Forex master’s article, you will see that all of the traders have always insisted the use of Forex trading and keep it at a very lower level. It is because they know trading for a long time on the market can make you impatient. You will also become less energetic in Forex trading. If you look at the professional traders trading journal, you will find that they have been very low in their number of trades. They only trade some small amount of trades. The reason they are still making a profit in this market is they know what they are doing. If you stay for longer hours in Forex industry, you will want to trade the market more. It will only lose more of your money. Being a new retail trader you should always trade the higher time frame using price action confirmation signal. Never develop your trading system based on indicators reading only as it will create confusion in making a trade decision. Indicators should always be considered as helping tools. Learn the different forms of the Japanese candlestick pattern and trade the market in favor of the trend.
Summary: Making money in Forex trading is all about quality trade execution. The expert at Saxo always suggests the new traders aim for high-risk reward trade in the higher time frame. Instead of scalping, try to become long term trader. Master the art of price action trading system and execute quality trades using money management.