Mistakes are bound to happen and that is why this article is important so as to learn how to avoid mistakes. However, it is important to note that this article is not written just to “entertain” you but to offer some tips.
Trading forex CFDs requires you to do what is best not necessarily what you think is good. It is not necessarily a case of being “fortunate” where you hit it big or go bankrupt. In this case, you will either hit it big if you work with a good mindset or you will go home all the same.
Use Wider Stop Losses
One irresponsible mistake most people make when it comes to stop losses is fixing a stop loss within the market daily range. Even though this may look like a wonderful idea but the reality is that it is a recipe for failure. Note that stop losses requires a wider margin so placing it at what you think looks best may be throwing away money unnecessarily.
Note that the thing keeping most people from following this simple rule is because they fear that their position size may be reduced. However, it is important to understand that this is in no way a bad idea because you have to look at forex CFDs trading as a game of logics rather than a game of chance.
Adopting a wider stop loss should not be seen as killing your game because at this point, you need to realize that reputation is the key. Therefore, the best thing has always been placing trade with a wider stop loss and not getting too emotional.
Adopt Fewer and Longer Trade
This is also another way to create a winning formula when trading. Instead of placing trades over and over, it is advisable to hold on to some bigger offers for a longer period.
Do not forget that each trade will involve you paying a broker fee. This means that the more broker fees you pay, the more you continually eat into your fund.
One problem with traders is that they begin to over trade when it looks like they have found a winning formula. To be realistic, trading does not really go that way and any trader who thinks in that way is setting himself or herself up for failure.
The best offers may not present itself to you so easily, you need to apply some patience and wait for it to come.
So in the end, forex CFDs trading is not really about how much trade you have placed but how much profit you have made. So if one big trade give you profit but does not come often, it is still better than many trades that keep fluctuating and messing up your trading record.
Patience is What You Need
There is no doubt that patience is the key and this is what traders should have at the back of their minds. Applying the right strategy and patience, it is possible to make it big in the world of CFDs.