The overtrading, a sure way to lose money – Part 3

We end the discussion in this article overtrading, or to trade excessively, even when it would be better to stay out of the market. When you apply two forex rules. The first says that you should not trade when the market conditions are unclear, but the second says that we must do so if the market is clear. If you have a trading system and do not you trade when the market is supposed to move in a certain way, the cause is that you are afraid of losing.

You must remember that when you develop a trading system, it gives us the advantage of operating leverage for exactly the market trend. The goal is to earn money with a low level of risk. What remains to be done at traders only benefit from their trading system.

The losses there will always be, one thing is known, since it is impossible to close all positions and in a positive gain for 100% of the time. And who wants to try to trade with the utmost precision, for the most part, if not always, has a very low risk reward ratio, which is what really helps in a consistent manner in the business.

Do not be afraid of losing money, since even the most famous and profitable traders know that about 80% of their profits come from approximately 30% of the positions. Traders work well with their famous trading system and they know that to operate profitably, there is only need to follow the system as if it has been well developed and includes a good risk management, will play the odds in their favor .

It ‘important to be based on your trading system, so as to have a way to earn money in a more or less constant.

Related posts:

  1. The overtrading, a sure way to lose money
  2. Money management and risk minimization
  3. How to keep a diary of trading
  4. Forex Trading Education: Things You Should Know About Forex Trading
  5. You can learn to trade – Part 2

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