Originally posted by Jogi

It is one of very important factors in forex trading. When you make a strategy for trading, you must also consider the probability of winning a trade before entering into it. Probability of winning can be measured by strength of indicator that you r using.

You can make better decisions based on winning probability whether to enter a trade or not.

Do u use this concept while trading or not?

Winning probability is always kept in mind while trading. But it depends on trader, if he wants to choose trades with high probability or all trades including the ones having low probability of winning.

Originally posted by Jogi

It is one of very important factors in forex trading. When you make a strategy for trading, you must also consider the probability of winning a trade before entering into it. Probability of winning can be measured by strength of indicator that you r using.

You can make better decisions based on winning probability whether to enter a trade or not.

Do u use this concept while trading or not?

Nice topic.. No doubt, it is one of very important factor of risk management. Some traders may want to choose trades with winning probabbility of more than 50%, some may want to go for 70%+ probability trades. At the same time some traders may choose trades even with very low success probabilities. Such traders want to try their luck in order to gain more profit.

Nice topic.. No doubt, it is one of very important factor of risk management. Some traders may want to choose trades with winning probabbility of more than 50%, some may want to go for 70%+ probability trades. At the same time some traders may choose trades even with very low success probabilities. Such traders want to try their luck in order to gain more profit.

Traders who choose trades with winning probability of 50% or above are trading as a professional should trade. But others are not doing forex trading. Their trading methodolgy is similar to gambling.

Winning probability is a factor which every trader should cosnsider before he performs his trades and might look at the chsances of winning the trade and then perform it accordingly as profits are most important in forex and nobody likes to loose. 

Before getting into position, it is essential to determine a price target.

This is called hope of winning, or the ratio Risk / Return

Originally posted by FXlord

Before getting into position, it is essential to determine a price target.

This is called hope of winning, or the ratio Risk / Return

 

Doing analysis is one thing and winning the same trade is another. We can do best is to analyze these markets and then hope to win the trade only after we have done our homework.

yea. Main thing is doing analysis before entering trade. We all know that we can never be 100% sure of winning a trade. But good analysis will make it possible to win more pips than we loose.

Originally posted by Sasha

yea. Main thing is doing analysis before entering trade. We all know that we can never be 100% sure of winning a trade. But good analysis will make it possible to win more pips than we loose.

 

Better analysis and doing everything right from your side will increase the hope of winnning and also the probability of making profits.

Yes entering high probability trades is important - think less of the 'chances of being right' which doesn't make money.  The best way to think of it is areas where the risk is limited and the reward is much larger - that might be because there is a lot of confluence, or could be because the r/r is good.  Once you have the position, you need the patience to hold the trade as well.

Winner always understand the market condition and they do not place the order at wrong time same as that only we should have to trade more confidently and carefully and i just love this business.