trading forex with success

The Perfect Forex Trade! or not?

Forex trading US Dollar

The perfect trade exists but let us not invest too much effort into the perfect trade or trading system. Reality is that every trade will look different and your results more than likely will also differ.

Your preparation and management of each trade really matters, if you are a high frequency trader you will have less time to mentally prepare for each trade.

If you find yourself in and out of trades all the time then more than likely your trading style is gambling rather than trading to a plan. Gambling is not a very good strategy for trading the financial markets.

Over the many years I have been trading I have only ever had two very brief conversations about trading with my father, keeping in mind that trading has been a big part of my life. He is very quick to point out that trading is just gambling and that can be true for some traders and those that have little or no understanding of the subject.

The perfect trade is not the result but your approach to preparing for the trade and how you manage this trade. Let’s list some components that make up the perfect trade regardless of win or lose.

  • Determine your risk as per your personal risk model.
  • Place your opening STOP as per your risk %
  • Make your trade entry as accurate as possible.
  • Know where you need to take initial profits to fund the trade.

By getting the above in play you stand a good chance to be profitable. There is much more that needs to play out within the big picture but by managing a few basics as mentioned you avoid many of the errors made that lose equity from your trading account.

Do not go chasing the perfect trade or perfect system just focus on the process on how to prepare yourself for each trading session and managing the trade.

I have written a comprehensive Ebook on trading and how to avoid most of the mistakes you can make. What many beginning traders don't realize is that psychology plays a crucial role in your success. Failing to realize that will lead to disaster and hence the title of the book.

Happy Trading, Steve.

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