What you should do in order to stop missing trades? - lstinvesting.com

What you should do in order to stop missing trades?


     As a trader, it can often happen that you want to open a transaction, but you hesitate, and then you check the charts and see that it would have been an excellent transaction. How many times has this happened to you? Or maybe you are more familiar with the situation in which you closed a transaction before reaching the Take Profit, due to emotions. Doesn't that sound familiar to you?
     Such situations are often unavoidable, but you will have to intervene when they become a habbit and deviate from the trading plan and strategy. What would you think if we tell you that there are effective ways to reduce the frequency of such mistakes, as well as the damage they cause? What if from now on you will master the emotional factor very well and you will not miss excellent transactions that could bring you a considerable profit?
     This article is meant to help you get started from now on enjoying transactions that will bring you a generous number of pips. In this sense we have good news, but also bad news. The good news is that the solutions we present below will free you from much of the stress caused by trading and give you the confidence and wisdom not to repeat the same mistakes. The bad news is that we can only show you the door to success, but the key is yours. It is up to you to follow our recommendations and stop repeating the same mistakes.
     

     Here are the most important ways to stop missing out on profitable transactions.

     1. Consider the current trend.
     Most of the time, the fact that we refer to the past when we want to make decisions in the future is a very useful behavior, which can prevent us from repeating the same mistakes several times. Over time, this type of behavior has contributed to the evolution of the human species, but in trading things are a little bit different. By analysing for too long the evolution of the price on past charts, we risk losing the current trend and missing the entry in a very good transaction.
     Many traders tend to belive that what has happened in the past will have an impact on the current or future price trend. Most of the times this happens, but there are situations when the evolution of the price does not follow the patterns of the past. That is why our recommendation is to carefully study the current trend and to initiate transactions in the direction of the trend. Never trade against the trend, even if it is tempting to make profit from corrective moves.

     2. Don't let fear influence your trading decisions.
     Fear is one of the most common pitfalls among traders. Whether the fear of opening a transaction due to uncertainty or the fear arises due to a transaction or a series of transactions from the past that led to significant losses, the end result is the same, namely the loss of the chance to generate profit.
     The solution to avoiding the feeling of fear is that from now on you start to treat each transaction individually, as a unique experience, because it really is. First of all, the most important thing is not to have too many transactions open at the same time. Overtrading is one of the reasons why many traders liquidate their trading accounts very quickly. So, first of all, to avoid fear it is necessary to open just a few transactions simultaneously, preferably it would be only 1-3 orders.
     At the same time, fear can arise due to the association of trading with unpleasant events in personal life. This can become quite complex from a psychological point of view, but you will have to deal with trading and personal life separately, and thus you will avoid the feeling of fear about opening a new transaction.

     3. Don't let overconfidence influence your trading decisions.
     It is extremely helpful to be confident when trading, but avoid overconfidence. And this is due to the fact that if you are overconfident there is a high risk of trading excessively and losing very quickly all the accumulated gains or even the entire capital from your trading account. Stay moderate, analyze the charts, be informed about the news and, most important, study, test and apply strategies. Only in this way you will be able to be constantly profitable and resist in this financial jungle. Be confident, but accept that the markets are like a chaos and the price can go anytime on the opposite direction of your transaction.

     4. Use alerts to open transactions.
     A great way to stop missing out on trading entries is to start using the price alerts. Alerts can automatically inform you when certain price levels you have previously set will be reached. This can allow you to stay informed about price movements without having to spend all day in front of the trading platform. The Meta Trader 4 trading platform allows you to set alerts according to the market price or a specific period of time. You can also choose the duration of the alert by setting an expiration date, and along the way the alerts can be changed.

     5. The Risk Reward ratio should always be at least 1:2.
     Finally, we want to let you know that the most important thing when it comes to open transactions is to use a Risk Reward ratio, which must be at least 1:2. This means that, for example, if you set a Stop Loss of 50 pips, the Take Profit must be at least 100 pips. The ideal Risk Reward ratio is 1:3 or even 1:4, but it is not always possible to achive such a result. Therefore, if the Risk Reward ratio is not at least 1:2, it is recommended not to open the transaction.

     In conclusion, we must mention that an essential fact in trading is to understand that you will not always be able to take advantage of all the opportunities to open transactions, as well as the fact that there will always be transactions that will close in Stop Loss. However, by following our recommendations above, you will be able to limit as much as possible those situations in which you miss the entries in the transactions. Be balanced, follow the trading strategy and don't forget that opportunities will always exist. The financial markets are constantly moving.

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