The new retail traders are always closing their trades with a very small profit. They have strong knowledge in the trading industry and they can also find very good trade setups. Despite all these factors they are still losing money. This is due to the fact of closing the trades too early. You have to allow your profitable trades run long in this market. If you close your trade with a small profit, you are killing the risk-reward ratio of that trades. The professional Singaporean traders always do the opposite. They close their losing trades early and let their profit run long. Just following this simple principle you can easily become a successful trader in the Forex market. But developing this skill as a full-time trader is very hard. However, if you read the tops of this article very carefully, chances are very high you will allow your profitable trades to run long.
Never become a trade addict
Trading is just like addiction. If you always look at your trading chart its will be very hard for you to give your profitable trade enough time to hit its potential take profit level. You need to look at your trading chart after a definite interval of time. Execute your orders with predefined stop loss and take profit level. If the trade goes against you, you will know how much money you will lose. So there is nothing to worry about your losing trades as long as you trade with proper money management. Know the different trading hours and based on that you should fix your trading hours. Stop being a trade addict and consider this as your business.
Use the key swings of the market
The long-term traders are the most profitable traders in the online trading industry. They always look for key swings in their online trading platform. Key swings levels are often considered as the major price reversal zone so you can easily place your take profit at these levels. But as a swing trader, you have to understand the importance of higher time frame trading. Many novice traders have blown their trading account by using the lower time frame data. When you trade the 0 minute or lower time frame, you will find it really hard to find high-risk-reward trade setups. On the contrary, if you use the daily time frame, it won’t take much time to find very good trades with high-risk reward ratio. Try to find trades WITH 1:3+ risk-reward ratio so that a single winner can cover three losing trades. Focus on the market dynamics and trade with market momentum. Use the price action signal to execute your orders at the key point of the market.
Trade management is the art of managing your running trades to maximize your profit factors. The professional traders use this skill to ride the long-term trend. If a trade goes in favor of you, you should move your stop loss to the breakeven point. But before you set your stop loss to the breakeven point make sure the market has breached a very important level. Sounds confusing? Let’s make it clear. Let’s say you have open a short order in EURUSD pair. After one hour price of EURUSD pair dropped more than 100 pips and broke one major support level. So you need to set your stop loss at the breakeven point or just above the broken support since it will act as strong resistance. Just by using the trailing stop loss features of the market you can significantly improve your profit factors.
You can also use the partial closing features to book a certain portion of the trade. Instead of closing the trade, use scaling method to close a small portion of the trade. But before you use it within your live trading account, use the demo account to learn trade scaling.