Aggressive trading psychology in Forex Market
aggressive Aggressive trading psychology in Forex Market
Each forex currency pair has their specific behavior which
differentiates itself from other currency pairs; similarly each
trader have their own different trading style and strategies.
In this article we are going to focus on aggressive traders and how
they plan their trades. We will highlight the factors that traders
who are looking to follow an aggressive trading style should
understand.
Being aggressive doesn’t mean using large stop loss or for that
matter using no stop loss. Also it doesn’t mean entering many trades
at a time and closing the ones that are in profit and let the ones
that are in negative stay open, I will term that type of trading as
reckless trading and this type of trading cannot produce profits.
Now explaining what I mean by aggressive trading; for example when we
consider retracements using fibonacci, the weaker levels generally
lay around 25% to 35% while stronger levels are generally around 50%
to 61.8% levels. What aggressive traders do is that they focus on
both levels and conservative traders wait for their opportunities
around the stronger levels.
Aggressive forex traders can either choose to enter at both levels
separately or sometimes can use strong trading levels to average out
the first trade. Since the aggressive trading requires more number of
entries therefore the margin required for trading also is reflected
in the same manner and margin requirement is on the higher side.
Similarly the risk and profit factor are on the higher side for
aggressive trading as there are instances when there are multiple
transactions open up and averaging each other.
Another thing to remember, like all other factors, one should be very
consistent in trading and should be following one consistent
strategy. As the risk and reward factor is very high, generally only
traders with large account size and reasonable experience indulge in
such trading style.
Although I do not recommend aggressive trading, traders who are into
it should manage their risk % appropriately and accept the high risk,
high reward mentality. If you think that is not for you, I would
recommend you to trade like majority of the pros do – By picking only
the best trades with price action confirmation.
This way, although we trade lesser but we have a higher winning
probability.
Forex is a psychology game, choose your path, demo it first and if it
works for you. Stick to it whole heartedly. Do not jump ship when a
new INTERESTING strategy comes along and you will be back to square
1. However if your strategy is not working for you, find out the
problem, tweak it and keep practicing it til you got it perfected.
If you still have not found success in forex, check out our AFM
winning Forex Course. It compromises of the whole system which
traders need in order to trade successfully.
See you on the other side!
Asia Forex Mentor
Ezekiel Chew
Asia #1 Forex Mentor www.asiaforexmentor.com
