Forex Profit Tips - Run your trading like a business

  • 2023/2/25 6:30:52
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  • forextradingsessiontimes

T cashback forexading forex forextradingtime session times very different from any other business, but it is still essentially a business forextradingmarket you need to run it like any other business and treat it as one Most traders get off to a false start by thinking that trading is like gambling and not a business that needs to be planned if you want to be a trader, this is very important The first step is to run your trading like a business and see it as a whole Just like any other business, the way you earn profits as a trader is by bringing in more income than your external costs Also, like any other business, if your trading costs are greater than your income, you will lose your money and your trading will be terminated in the market The cost of doing business / losing a trade The cost of running your trade is losing the trade, but this is normal and you need to recognize that this is a trading cost that you have to pay in the process of trading so that you can reduce the impact on your emotions Imagine a restaurant that needs to reorder food or pay employees, these are necessary because these are daily operating costs So, as So, as a trader, the biggest cost of doing business is the loss suffered from losing trades Every trader, no matter how much profit they step into, there is also a loss in that you cannot avoid it, try to accept it and learn how to handle it properly Another smaller cost associated with trading is the brokerage spread or commission This is the cost of trading that you incur from continuous trading and you need to remember that every time you enter a trade, you are required to pay a broker a spread or commission this is a real cost for you to think of it this way setting up having a trading venue you the next biggest trading cost you will have as a trader is setting up your exchange varies greatly between each trader, greatly, but at least a good laptop and a computer desk and chair is needed some traders may choose a multi-monitor computer setup and Expensive computer desktops and chairs can obviously get very expensive however, this is not necessary to facilitate trading all you really need is a good laptop and internet connection The good news about trading costs well, now you know that there is actually not much cost about your trading which means that there is no risk of singing over your really taking a loss on any one trade, this is done by Understanding how to properly prevent stops will also be an important factor in managing risk and maximizing rewards In many cases, properly prevented stops can be the difference between a losing trade and a winning trade Now, the bad news about trading costs is that if you dont manage them and handle them properly, then they grow very quickly In fact, if you dont manage your risk properly when trading, then you will definitely lose all your trades So you have to remind yourself in real time that these costs can be effectively managed and controlled, but it is up to you so now you know the major costs of your trading business, now there may be others, but these are the biggest for most traders Your goal is to make sure you make enough money from winning trades (income) to cover all your fees and then Now, it is time to learn how to run your trading business at a profit instead of a loss. As mentioned earlier, a trading business is profitable when revenue (the amount of winning trades) offsets the cost of trading (losses, office setup, etc.). exceed your trading costs? Here is an overview: Focus on risk reward– In each trade you need to determine if the risk reward potential is worth the trade, you need to make sure there is at least 2R or higher reward while making sure the stop loss is correct dont trade a lot– you dont need high frequency trading to make money you need to focus on learning to trade correctly and take high quality/high probability trades this is what I said in my article What I said about trading like a sniper trading like a crocodile puts more emphasis on money management than through money management, by that I mean managing and controlling the risk of each trade and making sure that getting a 2R or higher return is possible and also in trade exits most traders focus too much on investing and wasting time on things like trading indicators when in fact they should be focusing more on money management making sure you know how to Read price action correctly Finally, if you dont understand how to read price charts, you wont get very far in the market The foundation of any successful trading business is understanding price dynamics and how to read and trade from pure price action