Forex Trading Market - The Amateurs and the Professionals

Forex Trading Market - The Amateurs and the Professionals

Being fixed on the percentage of winning trades versus losing ones is similar to a disease and it cannot be easily cured.

In trading, not all battles are won and instead you should be willing to lose a few battles along the way. More accurately, as a trader, you should be willing to deal with small losses in order to avoid the creation of a large loss. A number of trading fiascos begin in the unwillingness of the trader to accept a loss.

The Amateurs and the Professionals

Natalia Osorio Editor of the "Best Forex Trading" website -- http://www.BestForexTradingUsa.com -- pointed out;

"In the judging of your performance record as a trader, an institutional investment company will first agree on whether your results are due to your outstanding decision making or from excessive risks. Take this for example; there are two traders both with starting equity of $50,000. The first trader was able to double the initial investment, thus resulting in a 100 percent gain, although he suffered a drawdown of 50 percent along the way. On the other hand, the second trader rose only to $60,000, which is only a gain about 20 percent, but his worst drawdown was only at 2 percent of the accounts value"

Although the first trader had the larger return, he is an accident waiting to happen. Any trader who is willing to lose 50 percent is also an excellent candidate to lose the account. Probably, the first trader was trying to hold on to his losing trades, or even adds to them, which is normally a signal of failure in trading the currency market.

The trader who can be considered superior is the second trader, since he was able to attain considerable gains with minimal drawdown. Generally, the institution would want to know just how much money can the second trader could comfortably trade.

The Good Trade and the Winning Trade

In trading, it is important to always remember that the ends do not justify the means. This only means that the outcome of the trade does not automatically justify the method used to achieve that outcome. There are traders who take the attitude that for as long as the trade wins, there is a good reason no matter what rules were broken during the process.

The truth is, winning trades are not always good trades and vice versa. It is still possible to perform everything incorrect and still achieve a triumphant result on a specific trade, just as it is possible to do everything right and still lose the trade.

"Remember that, as a trader, it is important to strive to be a good trader instead of a lucky one, since anyone can be lucky. More so, do not judge the trading on any particular result, but rather on whether the process followed proper protocols. If done correctly but still not trading successfully, at least you will be able to resolve that the problem lies not with the execution but with the plan" N. Osorio added.

Further Information About The Best Forex Trading Softwares And Resources By Visiting; http://www.BestForexTradingUsa.com

POST COMMENT

How To Get More Customers With Email List Marketing Forex Trading Market - Importance of Proper Execution Forex Trading Market - Talk About Flags And Filtering Entries Five Reasons Your Company Will BOMB Without Inbound Marketing Do You Know Affiliate Marketing? Forex Trading - The Volatility Cycle In The Market So What Is Affiliate Marketing And How Does It Work? Forex Trading Market - Advantages And Disadvantages Forex Trading Market - Reading A Forex Quote Slam Credit Card Charity Scams So What About Acme People search, is it a scam? Formaldehyde market is expected to parts of the country change for the better - formaldehyde, methanol market - the chemical industry Intelligent Building of Shandong Province on the specification (Community) market advice - Intelligent Buildings - Security Industry