Forex market is high leverage market and it can offer potential financial freedom to the right candidate. There are many traders in the world who are leading a high standard of life just by trading the financial assets in the market. Due to its high leverage, the traders can easily trade high lot size trade in the market with a very small amount of trading capital. This is one of the main reason that forex is getting popular among the retail trader’s community. In the past forex trading was only limited to large banks and institution since there was no high leverage system. Though the financial market is providing ample of trading opportunity to make a decent living out of trading but sadly the number of successful traders in the financial industry is very less compared to other business in the world. If you look at the statistics then you will be surprised to see that only 5 percent traders are making a consistent profit out of trading the live assets in the market. Most of the retail traders are losing money in forex trading due to their over trading. In this article, we discuss how to avoid over trading in the market and focus on high-quality trade execution.
Develop a strict trading discipline: No matter which profession you chose in your life it is extremely important that you follow strict discipline in your professional career in order to secure your success in the professional sectors. Similarly, if you want to become successful traders in the forex industry then you need to follow strict trading discipline. If you don’t follow strict trading discipline then you will be over trading the market very frequently and ultimately you will struggle hard to make money by trading. Forex Switzerland is also getting popular at an exponential rate since most of the people in Switzerland knows the value of discipline.BY following trading discipline you will be able to control the trading problem in your trading career. Your trading strategy should have ruled for the maximum number of trade that you can execute in the market and as a full-time professional trader, you need to follow your trading rules and discipline perfectly. Let’s say that your system allows you to execute three trades in a single day. If you follow this rules then you will have the mindset that you can take only three trades in a single day regardless of the number of trading opportunity and this will ultimately force you in quality trade execution.
Embrace your losing trades: Most of the traders in the financial industry fails to make money in trading since they consider only the winning side of the forex market. If you look at the professional forex Switzerland trading community then you will notice that all of them embrace their losing trades in the market just like their winning trades. Losing trades is just a part of the trader’s life and you can’t avoid it by any means. You should follow perfect risk management factors and manage your losing orders in the market in a rational way so that you winners are always bigger than your losers. Most of the novice traders get the freak out after few losses in the market and they start overtrading with high risk in order to recover their lost amount. But as a full-time trader, you should be well aware of the fact that over trading is the most deadly mistake that any traders can make in their life. A single high-quality trade execution is better than 10 low-quality trades in the market. So you should always focus on high-quality trade setups on the market in the higher time frame.
Know your risk exposure level: As traders it’s highly imperative that you know your own risk tolerance level in the market. The well said the rule of money management that 2% rule doesn’t really work in real life trading. For instance, if you are over trading and take 20 trades in a single day by risking 2% of your trading account in every single trade that you are exposing 40% of account capital in a single day and doesn’t fit the money management context. If you truly want to become a professional trader and establish a decent portfolio then you need to know your own risk tolerance level in the market. All the professional traders in the forex Switzerland trading community have their own risk tolerance level in the market. They always make sure that are comfortable with their losing amount in the market and size their trade accordingly. For instance, if you think that you are comfortable to lose 3 % of account capital in any single trade and your system permits you to execute three orders in a single day then you should not be risking more than 1% of initial invest in any single trade. Make sure that you are always comfortable with your losing orders in the market.
Summary: Overtrading is one of the most deadly mistakes that most traders make in their early part of their trading career. If you truly want to become professional traders in the forex market then you should know that over trading is the most dangerous enemy for the trader. Always focus on high-quality trade execution in the market and always make sure that you are comfortable with your losing trades in the market. Know your risk tolerance level in the market and based on that scale your lot size. Last but not the least follow strict trading discipline regardless of the market conditions and your emotion.