The Best Trade You Can Make in Currencies
The Best Trade, Here I am going to give you a piece of trading advice which is related to the best trade you can do in Forex, for the majority of the time. Most traders who trade currencies, make a fatal mistake by, not only NOT seeing this as a proper trade but failing to do it often enough – so let’s take a look at it.
You may have guessed it already but the best trade in Forex most of the time is no trade AT all – you remain flat and out of the market. Also deciding NOT to trade is a trade in itself. If you don’t think that’s sound advice, then you have probably never traded currencies successfully.
Why its the Best Trade Most of the Time
The majority of people when they start to trade, get excited and want to trade all the time. They get caught up in trading any news story they see on TV or try to make a few pips “for fun” but believe me, you wouldn’t catch a pro trader “trading for fun”, they focus on making money and know that patience is a key trait in currency trading.
It may sound obvious but to win you need to trade the best opportunities and make sure, you have high profit potential in terms of your risk to reward, to make money long term.
Another Misconception About Forex Trading that Causes Losses
The reason you need to be out the market and wait for long periods is simple:
You need to make sure you can make money on 50% of your trades or less which are big enough to cover your losses, so you need your winners to be at least 3 times the size of your losers but I Hear you say, I have a system which says it wins 95% of the time – if you have thought this, try trading the system and see how quickly, you lose your money.
Don’t believe the hype, you read by vendors selling worthless products cheaply which promise you the good life because – the reality of trading currencies is as Bill Lipuchutz (one the greatest Forex traders of all time) says you need to work out how to make money on around 30% of your trades and this is from one of the best traders ever.
No Trade is the BEST Trade Until the Market Offers You the Opportunity
The best trade as any professional trader will tell you is no trade for most of the time because you are preserving your cash for the RIGHT opportunities and maximizing your risk to reward.
A simple bit of Forex trading advice? Of course it is but most traders don’t understand it and lose their money so don’t make the same mistake.
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