Aggressive trading psychology in Forex Market

[Mazi]

Sininfinty, I understand your point. You will also agree with me that only professional traders would be able to pursue aggressive way of trading and make profits out of it. I dont think that any new and inexperienced trader would be able to make success in this way. Agree?

 

[Svetlana Loboda]

Sininfinty, I understand your point. You will also agree with me that only professional traders would be able to pursue aggressive way of trading and make profits out of it. I dont think that any new and inexperienced trader would be able to make success in this way. Agree?

Well; but professional traders don’t follow the way of aggressive trading! They follow the rules of money management policies so carefully!

 

[Lee Mark]

Frankly speaking; if you don’t respect the rules of money management as well as risk management you’ll suffer a lot! Your trading strategy is nothing if you don’t follow the rules of trading.

 

[Eduardo Lucchese]

Very informative post. many things can be learned from this post.

 

[Mark Dahl]

Frankly speaking; if you don’t respect the rules of money management as well as risk management you’ll suffer a lot! Your trading strategy is nothing if you don’t follow the rules of trading.

True. Traders need both to survive in the market long.

 

[Cooper Truebridge]

I used to do aggressive trading but never got it so I was able to change the trading formula and go for some profit. However, I have maintained discipline and journal.

 

[Gito Dinev]

Frankly speaking; if you don’t respect the rules of money management as well as risk management you’ll suffer a lot! Your trading strategy is nothing if you don’t follow the rules of trading.

I also agree. Try to maintain your strategy and plan under any market condition and your mental state.

 

[Alexander Hudson]

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.

Very informative post. And very helpful also.

 

[Kazumu Fukunaga]

All the successful traders on the planet are disciplined traders. They may have distinctive trading techniques however one thing is normal which is they are restrained. Taking in the market and being control is trading is the way to accomplishment here.

 

[Kevin Vogt]

The thing that makes a difference between a novice trader and champ trader is emotions. A trader can lose with best strategy since they don't trade with cleaned expertise rather than they trade with emotional impulse. Without having control over your emotions you can't make reliable profit in trading.

 

[Alicia Lynch]

I never go for aggressive trade. Money management and discipline are a part of my trading. Due to which the amount of my loss is less.

 

[Benjamin Bryne]

I have to trade with patience. If I try to trade aggressively, the amount of loss may be higher.

 

[Karley Walker]

Aggressive trading usually leads to losses. I need to create a trading plan with patience. Then I will be able to gain consistent profit in trading.