Aggressive trading psychology in Forex Market

[sindarin]

open more than one position is considered as aggressive trading psychology in foreign exchange market. I can say scalp is one of the best example, however there's risk and advantages when people decide to use this strategy.

 

[Decub]

There are certain things that could lead to this trading style and one of such is lack of control. If a trader is not able to control what he perceives as probably profit, he would only end up trading aggressively. That is one thing that affects a lot of traders and the best way to curb it is mainly by trading with a cool mind and cool approach to the business.

 

[budado]

I totally agree. In fact this is my weakness. I do know that I want to earn big in forex trading and I do think that I can. But same time I am worried that I will going to get hit by swap interest since lots of my trading account is not swap free.

 

[starlite]

If you can not work in stress you should never try aggressive strategy in trading . I personally experienced some times we think better in aggression , it can be good to recover loss in trading.

 

[cheet0z321]

If you can not work in stress you should never try aggressive strategy in trading . I personally experienced some times we think better in aggression , it can be good to recover loss in trading.

Some cases, we need aggressive trading, but it should be based on our accurate prediction, isn't suggesting for do reckless trading

 

[sininfinity]

I do know that I want to earn big in forex trading and I do think that I can.

You DO know what you want. But you are not sure whether you can do it or not. Is it not better to build up your confidence and then go on with it?

 

[Faal]

Basically, new traders are aggressive since they have no particular game plan here! But, professional traders are not, they have a defensive trading method that is called money management! Greedy Forex traders are the losers!

 

[Gerald Davydov]

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.

Psychology is the most neglected thing is forex trading though it is the most important aspect of trading. People are looking for ready-made strategies. They change the strategies one after another. But do not try to adapt the trading psychology. As a result most of the traders fail in trading.

 

[Tom Latham]

Psychology is the most neglected thing is forex trading though it is the most important aspect of trading. People are looking for ready-made strategies. They change the strategies one after another. But do not try to adapt the trading psychology. As a result most of the traders fail in trading.

Very smart answer! Yes, there is nothing like readymade strategy in Forex! Here, you have to build your trading system by your own dedications; again there is no shortcut way.

 

[sininfinity]

Psychology is the most neglected thing is forex trading though it is the most important aspect of trading. People are looking for ready-made strategies. They change the strategies one after another. But do not try to adapt the trading psychology. As a result most of the traders fail in trading.

I agree with you. There are thousands of strategies out there but all of those does not work for everyone even when they are spoonfed. I trader needs to make a strategy his own even if he or she is taking it from another person.

 

[Tom Latham]

I agree with you. There are thousands of strategies out there but all of those does not work for everyone even when they are spoonfed. I trader needs to make a strategy his own even if he or she is taking it from another person.

Thanks mate! By the way, may I know the name of your trading strategy? If you don’t mind actually.

 

[sininfinity]

Thanks mate! By the way, may I know the name of your trading strategy? If you don’t mind actually.

I don't have a branded strategy. lol My trading tools consist of simple support and resistance zones and fibo and price action.

 

[Tom Latham]

I don't have a branded strategy. lol My trading tools consist of simple support and resistance zones and fibo and price action.

A decent plan; I am also following the same. PA is my major and I identify the important levels according to the position of support and resistant area.

 

[sininfinity]

A decent plan; I am also following the same. PA is my major and I identify the important levels according to the position of support and resistant area.

Well for day to day trading, nothing more is needed if you can extract information from the chart. They may take some time to get used to but it comes around if you stare at the charts long enough.

 

[Tom Latham]

Well for day to day trading, nothing more is needed if you can extract information from the chart. They may take some time to get used to but it comes around if you stare at the charts long enough.

Chart is the key part of technical analysis; I must say traders need to focus on chart instead of technical tools;

 

[anna.semera]

Traders are often tempted to trade as much as possible to get profit. Unfortunately, this kind of trader does not pay attention to the risks facing him.

 

[Vernessh]

There is a huge risk of overtrading in case of aggressive trading. Anyway, it is bad strategy, as it can only lead one trader to blow his account. So, next time they will probably be more cautious with their trading method

 

[sininfinity]

I am not disagreeing overtrading but there are traders who find aggressive method more useful for them than conservative.

 

[Svetlana Loboda]

I am not disagreeing overtrading but there are traders who find aggressive method more useful for them than conservative.

Maybe you are talking about martingale trading style; I think it’s one of the most dangerous trading system to use.

 

[sininfinity]

Maybe you are talking about martingale trading style; I think it’s one of the most dangerous trading system to use.

OMG martingle. That is a total no from me. lol

I was talking about the approach. I am a conservative type of trader. I wait for signal confirmation instead of entering at the first sign of getting a signal.