Common Mistake We Must Avoid In FX Trading

If there is one thing that all professional traders have in common it is that they fully understand the power of risk reward and how to implement it on every single trade they take......

Beginning traders obviously know the importance of making sure their winners are larger than their losing trades, but they often do not understand how this translates into real world trading and what it really means.....

Every single trade you consider taking should be viewed in terms of risk to reward. risk is very important in business.....

You have to consider not only if your trading edge is present, but if the realistic potential of the risk reward on the trade makes it worth taking.....

.............doing so gives us an excellent shot ... at ....
making consistent money over the long-run.......

Many traders get caught up on losing 2 or 3 trades in a row because they fail to understand the full implications and practical application of risk reward ratios that take time to play out......

.........Forex risk reward and price action trading can make you a consistently profitable trader...........
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Many traders come into the Forex market and they do not understand that just because you put a wider stop loss on a trade does not mean you have to risk more money or that just because you put a smaller stop loss on a trade does not mean you automatically risk less......:confused:

A very common mistake that traders often make is that they adjust their stop loss to meet the number of lots they want to trade, instead of adjusting their position size to meet the most logical and realistic stop loss distance.......

A thorough understanding of position sizing is very important to your overall money management plan and to correct implementation of risk reward on every single trade

Most beginning traders make the mistake of not having a functional trading plan, and they also harbor the misconception that they don’t really need one....

Forex trading needs to be treated as a business, and just like having a business plan is necessary for the growth and prosperity of any business, having a Forex trading plan is necessary for the growth and prosperity of any trader.......

A trading plan helps to keep you accountable in a world that allows you to do an unlimited amount of damage to yourself; the world of Forex trading.....

Most traders seem to get fixated on how much money they can make and thus lose focus of the real risk involved in Forex trading,......

you read every single day can help to keep you focused and on track, so that you don’t fall off the wagon and begin trading in a delusional manner...