How to be a Successful Forex Trader Segment 9
How many Trades do you need?
I am often asked or advised that I should post more trades and/or have a signal service. This brings me to how many trades do you need. Understand, that enjoying the lifestyle that trading affords is always something you want to strive for. Do you want to be strapped to your computer for 8-12 hours a day? where is the fun in that?
if you have read my trade set-ups they are all designed to be high probability set-ups with Good to great RRR. However, there are only so many of those per day and I prefer to take the very best set-up there are. I risk 2% of of my capital per trade, always looking for at least a 3-1 RRR (meaning I am risking $1 to make $3). Simple math, If i net 2 winning trades per week, that is a 12% gain !!!
As I often ask traders, "if you could make 10-12% per week but could only take 2 trades would you do it?" the answers always surprise me, from outright no, to yes but I would hate myself, to sure but i would trade on the side (point of question goes over head...lol). As a professional trader, your purpose is make Money, PERIOD!!! it is not to hit buttons.
when reviewing your trades, are there low probability set-ups that you could eliminate?
Are there trades where the RRR is less then 3-1, eliminate those ad see where you would be?
I hope you enjoy this post and find it helpful. I would appreciate if you "like" it and follow me :)
Stay Green my Friends :)
Allen
I am often asked or advised that I should post more trades and/or have a signal service. This brings me to how many trades do you need. Understand, that enjoying the lifestyle that trading affords is always something you want to strive for. Do you want to be strapped to your computer for 8-12 hours a day? where is the fun in that?
if you have read my trade set-ups they are all designed to be high probability set-ups with Good to great RRR. However, there are only so many of those per day and I prefer to take the very best set-up there are. I risk 2% of of my capital per trade, always looking for at least a 3-1 RRR (meaning I am risking $1 to make $3). Simple math, If i net 2 winning trades per week, that is a 12% gain !!!
As I often ask traders, "if you could make 10-12% per week but could only take 2 trades would you do it?" the answers always surprise me, from outright no, to yes but I would hate myself, to sure but i would trade on the side (point of question goes over head...lol). As a professional trader, your purpose is make Money, PERIOD!!! it is not to hit buttons.
when reviewing your trades, are there low probability set-ups that you could eliminate?
Are there trades where the RRR is less then 3-1, eliminate those ad see where you would be?
I hope you enjoy this post and find it helpful. I would appreciate if you "like" it and follow me :)
Stay Green my Friends :)
Allen
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