I was recently approached by one of my followers on social media and he gave a compliment on my culture of trading, the discipline I present and he was so astonished how a single position can result into a reasonable amount of profit.
This clearly takes us to the title of the article “Quality over Quantity” this gives us question to ask ourselves as traders, What works best for us? Either quality of the trade or the quantity of the trades that are executed. So i decided to conduct an Instagram poll just to observe the perspective of my followers and 100% of them went for quality.
The quality of the trade matters 100% because at the end we need to bank our profits the more we execute we clearly deduct the odds of us banking more. I know i will get some crashes on this point but hey, it works best for me. You see when i decided to swing trade, my trading has changed a lot. We are talking of the time i consume in analyzing the chart and executing the trade. At profxtigers we have a panel of analyst’s who’s job is to dive deep on every aspect of the market(pair) that we are about to get involved with. Starting from fundamentals and the technical overviews. We believe in working as a team that has unfold success of our trades. By the time a decision is made and alerts sent to all our partners around the world, everything is on check like a pre-flight checklist. When i see someone trading like this (see image below)
I define such trader as an amateur. It is very expensive to trade this way since every open position is subjected to spreads and swaps not to mention commissions. Opening multiple positions at once does not guarantee profitability. Many traders who do this have over leveraged and acting this way defines you like a headless chicken. TRADE LIKE A SNIPER Most of you have heard this phrase. One shot and it hits target just like that.
Let me tell you this secret. You need only two trades in a row to double your account. The way i trade is by expecting our position to move ten times or more the size of our stop loss (Risk Reward Ratio 1:10) Imagine having $100 as capital (Assuming that majority of traders can afford) and risk per trade is just $5. I am going to give you the realistic example ever. So You receive a signal from our portal SELL EUR/USD, the take profit price is just ten times the size of the stop loss. This means $5 will bank $50 having a total capital of $150, just like that. Now let us be realistic, we still don’t know if the next trade is going to be a winner right? but our risk per trade is still $5.
Worst case we lose the next 3 trades in a row, your capital will now be $135 right? Many traders panic at this point but we get another signal from the portal, This time SELL AUD/USD same criteria like the previous trades. Risk amount is $5 and you bank $50. Now the capital is $185. This time we get just 2 trades in row so plus another $50 it means your capital is $235. Here you see the power of risk management, power of risk reward, power of swing trading and power of quality trades. Many professional traders trade this way it’s the easiest and stress free way to make money.
If you wan’t to chase the market, you will run out of oxygen and you will fail. Prepare your trading professionally be patient and attack with discipline. The quality of the trades depend so much on the attitude of a trader from the beginning of his/her career, I have seen many traders fall and some keep doing the same mistakes over and over and living on false hopes like “One day yes, there is light on the end of the tunnel” or the famous one “One day the sleepless nights and early morning’s will pay off” Sorry to say this, but if you are doing it the wrong way then my friend you will never be able to succeed in the business.
So i will wind up by saying this, right from the very beginning of your trading career, try to build yourself on the right side of trading by focusing on getting quality trades. Build your mind in the right path, many traders are not patient on the process of finding quality trades so they decide to find a quick fix by opting day trading or scalping and we all know cheap options and quick fixes are very expensive.
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Raymond is a professional currency trader with experience of 4 years trading the financial markets. Certified Risk Manager and Contributor at profxtigers.com
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