FOREX HIGH PROBABILITY W.06
In the world of trading, this jargon gets thrown around a lot. It is called the High probability trades. Everybody wants to take a high probability trade, but very few people actually understand what it really means. So in this article/video, we will break down this concept and explain that using very simple examples.
There is nothing worse than watching your trade be up 30 points one minute, only to see it
completely reverse a short while later and take out your stop 40 points lower. If you haven’t
already experienced this feeling firsthand, consider yourself lucky – it’s a woe most traders face
more often than you can imagine and is a perfect example of poor money management. The FX
markets can move fast, with gains turning into losses in a matter of minutes therefore making it
critical to properly manage your capital.
One of our cardinal rules of trading is to protect your profits – even if it means banking only 15
pips at a time. To some, 15 pips may seem like chump change; but if you take 10 trades, 15 pips at
a time, that adds up to a respectable 150 points of profits. Sure, this approach may seem as if we
are trading like penny-pinching grandmothers, but the main point of trading is to minimize your
losses and, along with that, to make money as often as possible. The bottom line is that this is your
money. Even if it is money that you are willing to lose, commonly referred to as risk capital, you
need to look at it as “you versus the market”. Like a soldier on the battlefield, you need to protect
yourself first and foremost
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