Page 144 - Ultimate Guide to Currency Trading

have won some, but overall you are a winner. Checking whether to close out your positions every half
hour gives you a kind of internal clock to gauge when to close out. If you did not have an internal timer,
then your early morning or late afternoon trading hours would spill out into the rest of the day. If
these were to happen, you could find yourself in a position of not getting away from your trading,
being late for work, staying up to the wee hours, etc. The half-hour system keeps you on track, and
forces you to close out your positions at the first sign of profit. Do not worry that there is not enough
profit in each trade: the profits will add up over the month.

Higher Expectancy of Overall Profit

When you are trading your account in a more conservative way and have it set up with a lower
risk/low reward profile, then you will most likely be trading less in your Forex account. If you are
trading less in your Forex account, then you will naturally be limiting the chances of placing a bad
trade and walking away with a loss. In essence, your will be expecting a higher percentage of winning
trades for the number of trades you will enter. Granted, the percentage gain on each winning trade
might be smaller than if you were trading aggressively. In any case, the percentage of wins to losses,
no matter how small the percentage, will add up to having your account be profitable in the long haul.
The key to this type of low-risk trading is just that: Only enter into trades that are low risk, and offer a
great chance of success, even if that success is only 1 percent or 2 percent gains. A 1 percent or 2 per-
cent gain that is repeated consistently for months on end can add up to a huge return on your money.
It is very easy to be in a small one pair trade in the early afternoon, and close out of it by dinnertime. It
is easy to gain 1 per-cent or 2 percent with a bit of certainty and safety. Compare this 1 percent or 2
percent daily gain to the 7-10 percent that can be gained in the stock market in a year. If your goal is
to gain safely, then consider placing your currency trades in a way that will allow you to gain slowly
and steadily.

Set yourself income goals for each session of around 1-3 percent per night or morning.
When you make your goal, get out of the trading platform for the day (or night). Think
about it as a part-time job; it takes time to do a bit of work, make your money, and
then go on and live your life.

This system can be more easily performed if you enter into each trade with a more
conservative stance. This conservative stance will then help you make a higher proportion of wins to
losses. Do not be too concerned with the fact that the wins are small. They are wins; it is money, and
you are developing skills that might make you want to trade with larger and larger amounts.

Either way, your higher expected win/loss ratio can be satisfied by smaller trades,
diversification, shorter time in the trade, and the use of very tight, automated take-profit points.
Additional measures of expecting a higher number of winning trades is to check your net position
profit every half hour. If you are at a profit point, then close out all of your trades, including the losers.