AGGRESSIVE TRADING PSYCHOLOGY IN FOREX MARKET!
Aggressive trading psychology in Forex Market
Each forex currency pair has their specific behavior which differentiates itself from other currency pairs; similarly each trader have their own different trading style and strategies.
In this article we are going to focus on aggressive traders and how they plan their trades. We will highlight the factors that traders who are looking to follow an aggressive trading style should understand.
Being aggressive doesn’t mean using large stop loss or for that matter using no stop loss. Also it doesn’t mean entering many trades at a time and closing the ones that are in profit and let the ones that are in negative stay open, I will term that type of trading as reckless trading and this type of trading cannot produce profits.
Now explaining what I mean by aggressive trading; for example when we consider retracements using fibonacci, the weaker levels generally lay around 25% to 35% while stronger levels are generally around 50% to 61.8% levels. What aggressive traders do is that they focus on both levels and conservative traders wait for their opportunities around the stronger levels.
Aggressive forex traders can either choose to enter at both levels separately or sometimes can use strong trading levels to average out the first trade. Since the aggressive trading requires more number of entries therefore the margin required for trading also is reflected in the same manner and margin requirement is on the higher side. Similarly the risk and profit factor are on the higher side for aggressive trading as there are instances when there are multiple transactions open up and averaging each other.
Another thing to remember, like all other factors, one should be very consistent in trading and should be following one consistent strategy. As the risk and reward factor is very high, generally only traders with large account size and reasonable experience indulge in such trading style.
Although I do not recommend aggressive trading, traders who are into it should manage their risk % appropriately and accept the high risk, high reward mentality. If you think that is not for you, I would recommend you to trade like majority of the pros do – By picking only the best trades with price action confirmation.
This way, although we trade lesser but we have a higher winning probability.
Forex is a psychology game, choose your path, demo it first and if it works for you. Stick to it whole heartedly. Do not jump ship when a new INTERESTING strategy comes along and you will be back to square 1. However if your strategy is not working for you, find out the problem, tweak it and keep practicing it til you got it perfected.
If you still have not found success in forex, check out our AFM winning Forex Course. It compromises of the whole system which traders need in order to trade successfully.
See you on the other side!
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Ezekiel Chew
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Aggressiveness in anything is bad. Aggressive trading will lead to impatience and undiscipline which will result in loss.
Good article.
Sometimes, aggressiveness is needed. Being aggressive doesnt mean recklessness but it can be used to out advantage. In my opinion aggressiveness means trying to grab most opportunities from forex market irrespective of small or big.
Originally posted by JogiSometimes, aggressiveness is needed. Being aggressive doesnt mean recklessness but it can be used to out advantage. In my opinion aggressiveness means trying to grab most opportunities from forex market irrespective of small or big.
Asiaforexmentor is talkinga bout something else. Taking opportunities is something else and trying to grab everything is something else. Aggressive trading means excessive risk. Excessive risk is never good.
Forex is a psychology game, choose your path, demo it first and if it works for you. Stick to it whole heartedly. Do not jump ship when a new INTERESTING strategy comes along and you will be back to square 1. However if your strategy is not working for you, find out the problem, tweak it and keep practicing it til you got it perfected.
I like this paragraph. It is very difficult to stick to a plan especially for beginners. Traders start to panic if there is a loss. They try to find something new and leave their old strategy instead of tweaking it.
Originally posted by Champ
Forex is a psychology game, choose your path, demo it first and if it works for you. Stick to it whole heartedly. Do not jump ship when a new INTERESTING strategy comes along and you will be back to square 1. However if your strategy is not working for you, find out the problem, tweak it and keep practicing it til you got it perfected.
I like this paragraph. It is very difficult to stick to a plan especially for beginners. Traders start to panic if there is a loss. They try to find something new and leave their old strategy instead of tweaking it.
That is why demo account is always suggested for newbies. It is bcoz they can make a good strategy without loosing any money. they can test it freely in all market conditions, tweak it and make it better.
There is a contradiction between "Agressive trading psychology" and "Winning probability". Agressive trading psychology says that traders should consider even weak opportunities. Winning probability concept says that traders should only trade where probability of success is more than 60%.
Originally posted by JogiThere is a contradiction between "Agressive trading psychology" and "Winning probability". Agressive trading psychology says that traders should consider even weak opportunities. Winning probability concept says that traders should only trade where probability of success is more than 60%.
I look at it in another way. Agressive trading psychology means to enter trades with winning probability of 50% and sometimes even 40%. 40% maybe too risky but sometimes when market is moving in ur favor and u feel urself lucky, you may want to grab small opportunities too. So there is no contradiction as both of these concepts are not about reckless trading.
Originally posted by Champ
Originally posted by Jogi
There is a contradiction between "Agressive trading psychology" and "Winning probability". Agressive trading psychology says that traders should consider even weak opportunities. Winning probability concept says that traders should only trade where probability of success is more than 60%.
I look at it in another way. Agressive trading psychology means to enter trades with winning probability of 50% and sometimes even 40%. 40% maybe too risky but sometimes when market is moving in ur favor and u feel urself lucky, you may want to grab small opportunities too. So there is no contradiction as both of these concepts are not about reckless trading.
Good point.![[cool]](/themes/default/images/smiles/cool.png)
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The good or ill of a man lies within his own will. – Epictetus
It is a nice article.
Has any one tried asiaforexmentor website for coaching purpose? Its article writing concepts r good. But I want to know about their technical trading skills.
Stick to your rules
Yeah sometime we feel like aggressive because of market behavior and we have to trade more carefully after seeing the market condition and just try to keep some patients.