Wait for the right set-up
Wait for the right set-up
People actually don’t know how important it is to wait for the right set-up, some traders think that the more you trade the more money you make which is very much unlikely, trading doesn’t work like that, you might make a lot of money from 5 to 7 trades, and use just only one trade to lose everything including your initial magin.
But waiting for the right set-up gives you an edge in the market, when you trade only when you sees an opportunity, you will mostly comes out profitable, as long as you knows the craft a little, but probing the market every now and then will only make you lose money, because trading is more of patience and knowledge.
You know it is easy to say wait for a good trade set up. Where the work is in being patient and it is the patience that beginners often lack. A friend went from taking a trading course to doing 5 live trades and guess what, he lost. Successful traders will only take one to three trades each day and they could even do less. I think that some trades are just not necessary, they just waste the trader’s time which should have just been spent either doing nothing or engaging in some hobbies. Waiting for a good trade set is simply waiting or the right trading opportunities.
This will depend on the strategy that the trader is using. Traders that are using high leverage will see this a lot. Assuming a trader has $500 to trade, he can think of 10x leverage, thinking to earn $10 each from scaping. If the trade favors him, he will be winning $10 each. Let us say he has won 5 time which is $50. If he trade again the 6th time and the trade is not favoring him, he will think to leave the position open for a while and this might result in liquidation of the money used. But if using low leverage or no leverage at all, it can help against high risk trading.