After learning the basics of trading, the novice trader starts their journey in the investment industry. The majority of the traders trade with great enthusiasm since they know the potential profit factor at the trading business. But they don’t realize the fact, to make a regular profit, a trader has to learn a lot. Even after knowing everything about this market, they will have to deal with the losing trades. Losing trades are not a big issue once you learn to manage them properly. In most cases, the professional traders consider the losing trades as a learning opportunity and it allows them to fix the faults in their system.
In this article, we will discuss some simple steps which will allow us to deal with the losing trades. If we follow the rules properly, we won’t have to deal with the frequent losing trades.
Set a long term goal
The rookie traders love to trade this market with short-term goals. To them, the short-term trading strategy is the best way to make a big profit in the trading business. But in reality, the short-term trading strategy is designed for extremely skilled traders. Many professional traders consider short-term trading methods as too risky and thus they move to the long-term trading strategy. Instead of learning about the scalping system, learn about the position trading strategy. By doing so, you can secure big profits from a few trades.
Moreover, you won’t have to trade in an aggressive way to recover big losses in the trading profession. Once you start trading with long-term goals, finding the trade signals in the mt4 platform will become much easier.
Trade with the trend
Do you know the majority of novice traders prefer to take the trades at the top and bottom of a trend? To them, trading the tops and bottom is the best way to make a big profit in the investment business. If you want to succeed as a retail trader, you should learn to focus on important market variables and study the major trend line in the higher time. While drawing the trend lines, do not join the key swings forcibly. The trend line should touch three critical swing points smoothly. Unless it does, you do not have a valid trend line. Once you learn to draw the trend line properly, take the trades in favor of the trend as it will reduce your losing trades.
Use fewer indicators
Using too many tools, EAs and indicators is another common reason for having frequent losing trades. If you truly believe trading is the right profession, you should trade with fewer tools. Instead of using multiple indicators, focus on simple tools which will act as the trade filter. Once you master the proper way to use the tool, you will realize, indicators are not necessary to make a consistent profit. You may trade this market by using the price action confirmation signals only. But for that, you must be good at analyzing the candlestick pattern. But still, you should rely on few tools as they will eliminate human errors and help you to find reliable trade signals. Instead of using programmed tools, use support and resistance levels in the higher time frame. This will improve your trade execution process.
Stop trading the news
The novice traders love to trade during the high-impact news. They think it is by far the most effective way to make a big profit in the trading profession. If you want to succeed as a retail trader, you should learn about the different forms of market news and use them to find the direction of the trend. Never open a trade right before the major news release and expect to make a big profit. If you do so, you are just relying on your luck. And those who rely on luck can never pursue their dream no matter how hard they trade.