AGGRESSIVE TRADING PSYCHOLOGY IN FOREX MARKET!

Aug 25, 2011
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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!
Asia Forex Mentor
Ezekiel Chew
Asia #1 Forex Mentor
 

mr.gardner

Trader
Mar 14, 2012
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Thanks for the good post! Aggressive trading is not for me… I prefer long term investing on FOREX , based on steady signals and big positions!
Good Luck
 

Ary Barroso

Active Trader
Jul 9, 2017
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Great job, this is very much important lesion for the new traders, since I see a number of new traders try to make quick money, but there is no shortcut way of money earning.
 

Akwin

Trader
Oct 12, 2020
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Over trading is dangerous. Trading with good psychology. Control yourself and you will have what you need. Profit
Yes, it is, traders who are into it should manage their risk % appropriately and accept the high risk, high reward mentality.
 

Uaredaty

Trader
Jan 19, 2019
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Agreed with Dora. Being too aggressive in trading can lead you to blow your account very swiftly, because it is trading with highest risk taken. So, it should be traders personal decision, but he or she must be aware or risks
 

Glossy

Trader
Aug 2, 2021
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Poland
By feeling the market and trading with news and good analysis, you can make very big money on every trade, especially with aggressive trading.