Accepting losing trades is very hard for the new traders. Traders, in general, don’t want to accept the fact that they will lose money in trading. But to become a fulltime trader, you have to change this mindset and be prepared to lose trades regularly. Those who are new to trading might be searching for a bulletproof strategy that will help you to avoid losing trades but does this strategy exist? If such a system exists, no one in this world would have lost money. The institutional traders in Australia would have made millions of dollars in profit and changed the concept of trading.
Avoiding the losing trades is not possible in trading. But by following a few simple rules, you can significantly improve your win rate and change your life. Let’s discuss that technique and become a better trader.
Develop your skills
Without having the right skills, a certain individual can’t make a profit from this market. You may think trading is only applicable for the rich individuals. But this statement is not true in this modern world since professional brokers are offering high leverage trading account. With the right skills and a balanced trading strategy, you can expect to make a huge profit from this market. There is no reason to get frustrated if you know the number of successful traders is only 5%. Most of the traders are losing money because they don’t have the right skills. Work hard to develop your trading skills and you will never have a tough time in trading.
Trade with the best broker
Selecting the best broker is very important in trading. The expert always trade with the best Forex trading account since they know the importance of a robust trading platform. If you analyze the market data in a low-end trading platform, it won’t take much time to face technical glitches and heavy slippage. However, if you trade with a high-end broker you will always have access to the best trading platform. Most importantly, it will help you to make a consistent profit. But this doesn’t mean having access to the best broker gives you a certificate declaring you are a successful trader. You have to trade the market with discipline or you will lose money most of the time.
Trade with discipline
You might be the best trader in the world but still, you will fail to make money. Do you know the reason why? You need to follow proper trading discipline in each trade or else you are not able to embrace the losing trades. Most of the time, naive traders become frustrated and break their trading rules. Unlike them, the experienced traders always stick to the basic rules of trading and they never break the rules in trading. Trading is only for disciplined people. If you fail to control your emotions, you will never make a profit. At times you might get lucky but considering the long term consequences, you will be the ultimate loser.
By now you know you can’t avoid losing trades in Forex. Does this mean you will fail to make money? Losing a few trades doesn’t make you a loser. If you follow the basic rules of money management, you can’t afford to lose 10 trades in a row. Based on the risk-reward ratio, you will make a profit. Those who are new might trade the market with a 1:2 risk-reward ratio. But this is very common in trading. To make things easier, you need to look for a 1:4+ risk-reward ratio in each trade. Never forget the fact that losing trades are inevitable. So, if you manage to make a profit even after having the lost some trades, you can easily change your life and become a successful trader. For that, you must trade with the market with a high-risk reward ratio.