90-95% of the traders loose in forex. Most new traders are in this 95% who give up forex after wiping out their accounts.
How is this possible when you have a 50% chance of winning a Trade??
(Close to 50%, if the spread is 0$, then its 50%...The time it takes to reach SL or TP may differ but you have a 50% chance)
There maybe lots of reasons for this. Like lack of knowledge or lack of practice in the demo account etc.
I will write here the main reason i think which cause this. I'm not a expert by the way
(Passe meter une meka, thama Meter une nathi ayata wadagath wei kiyala hithanava
)
REASON #1
Poor money management.
New traders close their good trades when they see +10pips but don't close their bad trades even when they go pass -40pips waiting for the rate to turn.
You should let your profits Run on good trades and limit losses on bad trades.
Tip#1
Risk:Reward ratio should be 2:3 or 1:2 or higher.
You should set your Stop Loss and Take Profit to the above ratios.
So a even if you have 2 good trades and 2 bad trades per week. you will still be in profit.
Tip#2 : Never Let a Good trade hit TP when you are monitoring the trade.
(Oya PC eke or mobile device ekakin monitor karanne nathi welawata awulak naa)
Always trail. If your predefined TP was 30pips. When its close to 30pips change your TP to 100pips. after the rate go pass 35pips, change your Stop loss to 30pips. When the rate go pass 40pips. change your SL to 35pips. Trail to the end.
If you have more reasons for this write them here...
Anith ayatath balanna Bump ekak daala yanna!
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This Thread Is Sponsored By
Figher Pilot Reaction (New SL Android Game)
Visit that thread too...
How is this possible when you have a 50% chance of winning a Trade??
(Close to 50%, if the spread is 0$, then its 50%...The time it takes to reach SL or TP may differ but you have a 50% chance)
There maybe lots of reasons for this. Like lack of knowledge or lack of practice in the demo account etc.
I will write here the main reason i think which cause this. I'm not a expert by the way
(Passe meter une meka, thama Meter une nathi ayata wadagath wei kiyala hithanava
)REASON #1
Poor money management.
New traders close their good trades when they see +10pips but don't close their bad trades even when they go pass -40pips waiting for the rate to turn.
You should let your profits Run on good trades and limit losses on bad trades.
Tip#1
Risk:Reward ratio should be 2:3 or 1:2 or higher.
You should set your Stop Loss and Take Profit to the above ratios.
So a even if you have 2 good trades and 2 bad trades per week. you will still be in profit.
Tip#2 : Never Let a Good trade hit TP when you are monitoring the trade.
(Oya PC eke or mobile device ekakin monitor karanne nathi welawata awulak naa)
Always trail. If your predefined TP was 30pips. When its close to 30pips change your TP to 100pips. after the rate go pass 35pips, change your Stop loss to 30pips. When the rate go pass 40pips. change your SL to 35pips. Trail to the end.
If you have more reasons for this write them here...
Anith ayatath balanna Bump ekak daala yanna!
--------------------------------------------------------------------------------------
This Thread Is Sponsored By
Figher Pilot Reaction (New SL Android Game)
Visit that thread too...
---------------------------------------------------------------------------------------
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