Australasian Association for Information, Communication Technology

Australasian Association for Information, Communication Technology

Don’t try to replicate your last trade setup

1 post / 0 new
Don’t try to replicate your last trade setup

Many traders have lost in Forex because they have been trying to replicate their recent trades in the market. As a trader, you have to understand this repeating the last trend cannot bring you money. Why it cannot bring you money is the topic of our discussion in this article. If you can read the full article, we can tell you that you will gain some precious knowledge about the market. It is a widespread misconception among the traders. They think in the most typical way that once they have won a trade in Forex, they will only repeat this in the market. What they do not realize is the trend changes very time in Forex. This is why we always say that you need to adapt your strategy to the changing market. If you cannot change or modify, the evolving market will have outdone your existing strategy with the new trend. When you keep on changing, you have chances to make money spawning.

Every trade is unique
Keep this sentence in your mind. Every trader is unique in Forex, and there is no relation among the other trades in Forex. Just because you have made a 10-dollar profit does not mean you cannot lose 10 dollars in your next trade if you follow the same strategy. Also, if you're wasting 10 dollars in the market, you cannot say you will also lose 10 dollars in your next trade. This market is always changing and what is your winning strategy at this moment will be invalid in the next moment. No trades are connected or somehow related in Forex. They are all independent, and you need to analyze the market every market before each of your trade.

Market is always changing
Just as we have said, this market is not still. It always changes and it always will. The reason why many traders made money in their first trades and lost their profit in the second trade is the failure of understanding of the market change. What is a good strategy for the market cannot do you good if the market changes? Professional Aussie traders always analyze the market before their every trade. This is only possible when you are trading for a limited number of quality trades. Making money in Forex is easy when you are disciplined and placing good trades. If you take the market as still, you will lose money when you try to repeat your last trades.

Learn from your losing trades
Most of the retail traders never learn from their losing trade. If you are new to this market, then you should use the demo trading account Australia, to develop your trading system. Many traders often trade the market by using other people trading system which are entirely wrong. Every single trader in this investment sector has different risk tolerance level and psychology. You need to learn all the three major types of market analysis and based on that develop your trading system. Some traders often use too many indicators and try to repeat the exact result of their last successful trade execution. But this market is dynamic, and no can repeatedly do the same thing. You need to have a solid plan to find the quality trading signals to trade this market. If possible, enroll yourself to some paid trading course to learn about the market details from the expert trades.

Trading the financial instrument is only for passionate people. You need to have firm control over your emotions and always trade the market with rational logic. Losing is nothing but a part of your trading career. So make sure to follow proper money management in every single trade. Instead of trading the lower time frame focus on the higher time frame data to avoid the false trading signals.