How Many Times a Day Should Forex Trading?

No comment 312 views

How Many Times a Day Should Forex Trading?

The high volatility of the forex market is indeed the cause of the many opportunities that can be used by forex traders. Opportunities can arise at any time: morning, afternoon, evening, night, or even early morning. No wonder forex trading is increasingly becoming one of the alternative businesses that are getting more and more interested.

This time we will instead highlight the high frequency of profit opportunities created. Does a forex trader really have to do a “brush out” of all the opportunities that exist? Or does it even have to be “picky”? Which one is true?

Opportunities are directly proportional to risk

We are equally aware that in the business world (including investment) the law of “opportunity is directly proportional to risk” applies. This means that the greater the opportunities created automatically will make the risks faced become even greater. High risk-high return.

Thus, a very large opportunity on the forex market is certainly accompanied by a potential risk of comparable magnitude. Don’t think that every transaction you make – or is suggested by your consultant – has a guarantee that it will definitely make a profit. There is no guarantee like that. That is why at every opportunity the Market Analyst always reminded of the need to anticipate and limit risks by applying good and proper risk management , one of which is cut loss.

Don’t “Require” Trading Every Day

Back to the opportunities that are very large, you should also not make trading activities an “obligation” that must be done every day. Even though for example you are a full-time trader who makes forex trading as the only livelihood, still not allowed to trade blindly.

Keep looking for the best opportunities based on the analysis you have done. As a day trader for example, you still have to look at the market and find out when the right time to open a position.

Don’t “Revenge”

Often a trader also feels the need to make a transaction just for the sake of “avenging the defeat” that happened before. He felt the need to immediately cover the losses caused by previous transactions by opening new transactions as quickly as possible and often ignoring good and correct analysis. The desire to immediately make up for losses previously suffered is the motivation behind the action. This is called “revenge trading”.

Don’t get me wrong, this kind of attitude not only hits beginners but also “veterans” who have long been in the world of forex trading.

When experiencing loss , “veterans” actually get a greater psychological burden than beginners because they are usually used as “role models”. There are quite a lot of veterans who feel embarrassed if they are known to have suffered a loss, especially if it turns out they suggest their “followers” to follow them to open the same position. That will hurt their ego so that they are triggered to immediately “make up for” that shame and passionately pursue every price move. They become emotional.

In such psychological conditions, traders often ignore the need to be careful in making decisions; or at least their level of caution is greatly reduced. The level of accuracy in looking at price movements also decreases and is often drastic. So it is not surprising that the next decision is of low quality in terms of analysis.

In addition, they will also tend to overtrade, namely opening positions with quantities that are too large beyond the risk tolerance set in the trading plan. Or, transactions carried out repeatedly in the hope of being able to quickly cover losses previously suffered.

This is not good. Recall that opportunities are directly proportional to risk. The bigger, or the more often you make transactions, besides making opportunities to gain profits will be greater but also expose your capital to face greater risks. Think about it again.

So, How Many Times a Day?

Although usually a day trader makes transactions once a day, there is actually no minimum or maximum limit. You should open a position if you can clearly see that there is a valid trading signal provided by the trading system that you have. If there is no valid signal, I suggest not to make a transaction.

Often even a full day you don’t find a valid trading signal. If you feel that MUST TRADING TODAY, the trading decisions that you take will not have a strong enough basis for analysis. Remember that even though you have done a good analysis, it is not certain that the transaction you are doing will end in profit. So if you force yourself to continue to make transactions at that time you actually have gambled. The decision that you take is an emotional decision because you are upset because you are worried that you will not get a profit on that day.

If you cannot make transactions today because there is no good opportunity, you can still try to find other opportunities on another day.The market has been kind enough to stay open 24 hours a day, 5 days a week.

So if you currently use a trading system that you believe is of quality, make a transaction only if the system provides a clear and valid signal.Such signals can appear once a day, twice a day, or even not appear at all. Just follow the signal every time you look at it and don’t force yourself to transact if there is no signal you see. As simple as that.

Happy trading.

Related Search

author is a forex trading system website that started to be published since 2011 and has been used by thousands of traders around the world. The system is very simple and accurate, priced at $ 167 for a lifetime membership with no monthly fees or hidden fees. Our team created this system by testing thousands of indicators then selecting 23 indicators and combining them into one great trading system.
No Response

Leave a reply "How Many Times a Day Should Forex Trading?"