In today forex faq, we have a question from one of our fellow traders asking me the below question
Below is the question
My biggest problem is to catch the right moment to enter in a trade. I know about price action and momentum indicators but I lost the focus many times because I’ve not very patience to wait, I suppose… I’d like to listen some tips to solve.
Could you help?
Talking about patience is something that most new traders lack. In fact, majority of new traders wanted to do some trading every single day and this is usually what causes them to lost a lot of money in the end.
Due to their eagerness to enter a trade, they will enter a trade even if it is not according to the strategy that they are using.
Therefore I will like to use this article to share with you guys how a real trader trades so that you have an idea about it.
Based on my own experience, trading is like fishing. You need to be patience and you need to be willing to wait until the setup is 100% according to your strategy before you trigger a trade.
I do not know about you, for me, the main purpose of trading forex is to make money and nothing else. It does not matter to me whether I have trading opportunity everyday or not, what really matters to me is that by the end of the money, I must be making profits.
That is why it never bothers me whether I can get at least 1 trade per day or not. What really bothers me is whether I am sticking to my plan or not and whether I am in the profit zone or not.
My personal advice to you is to tame your eagerness to take action and stop thinking that you must have at least 1 trade per day to be profitable.
In fact, you do not need to have a lot of trades to make good profits every month. Let me give you an example
If you trade with 4% risk per trade and you have a risk reward of 1:3, you just need a few trades to be very profitable. If you have been using my Trade Copier, you will know that I even have trades that have risk reward of 1:4.
For each winning trade, you will make 12% growth to your account. If you manage to have 5 winning and 5 losing trades per month, you will grow your account by
Profit = 5 x 12% = 60%
Loss = 5 x 4% = 20%
Total % growth per month = 40%
With just 10 trades per month, you can growth your account by 40%. If you have $10,000 in your account, you will be making $4,000 per month.
So stop thinking that you need to have at least 1 trade per day to be profitable. You just need a few profitable trades per month to make a decent income from trading.
Do note that force trading is one of the main reason why new traders got their account wiped out within the first month of trading.
Trust me, the only way you can make money from trading forex is
1) High Risk Reward Strategy
2) Decent Winning Percentage Strategy
3) Discipline to stick to your Strategy
I hope that I have answered your question and do feel free to email me if you have any problem.