Aggressive trading psychology in Forex Market

[davidjss]

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.

 

[martyn]

we can trade forex with aggressive if we've really mastered the market well. But if we do not dominate the market well, with aggressive trading can make you experience a great loss. because I've been trading with aggressive when I have not mastered the market well, and the result is I only get loss in trading.

 

[Markllee30]

Yes i do also believe that we should do trading keeping mind col and with patience else you may loose money in forex.

 

[jackcm]

Aggressive trading is dangerous and especially if trader doesn't manage money well. Even if he/she does, it doesn't save us from losing because of aggressive trading. It is not recommended for trader to open many positions though trader eventually wins those positions.

 

[naninov]

i do not have any dare to agressive trading, better keeping small pips but repeatedly and stable rather than trading agressive but carrying such high risk while trading, patience is good mentality for me

 

[Daisy]

I do not want to open way too many trades and lose them all. I prefer to only trade at a certain time and do only long term trades. I can open may of them but I'm not willing to take that much risks so if you can then its great for you. I think its important to be patience and only enter a market where ewe can profit from it. I think aggressive trading are for the pro who has lots of money.

 

[gkintl]

Aggressive trading style may not work in the forex market or in any kind of financial market as such. A trader should wait for opportunities. Creating an opportunity merely to trade in the market will only result in a loss. Not all patterns can be traded successfully. Thus, only specific patters that have yielded good results in the past should be looked for before entering into a trade. If not, it would certainly lead to a substantial loss.

 

[sindarin]

Being Agrresive in forex is not a bd idaea also if you ask me, but it requires a lot of knowledge and also more advanceds skills of your analyzation, but it is better to be patience in most of our trading, i think 80% of you trading should be calmly while the rest is aggresive, but it is also depend on the condition of the market at the moment.

 

[Daisy]

Aggressive trading equal aggressive loss in a bad market. If you try this is a bad news week, you will not get results. It will depends. If the week is good and nothing is down, then you might give it a shot but when it comes to your money, unless you're Warren Buffett, just avoid going fast at it. Patience is the key unless you want the digressive loss also that might come out of it. I'm certain that many do loss as they open way too many trades and even sleep on some of them and then forgot about it.

 

[gkintl]

Being Agrresive in forex is not a bd idaea also if you ask me, but it requires a lot of knowledge and also more advanceds skills of your analyzation, but it is better to be patience in most of our trading, i think 80% of you trading should be calmly while the rest is aggresive, but it is also depend on the condition of the market at the moment.

In sports we can be aggressive. Forex is a mind game. How and why should there be an aggressive response to price movement. Aggressiveness, whether it is in the form of higher lot size or frequent entries, always results in margin call followed by dilution of positions. It is always better to trade using a simple strategy with calm frame of mind. The results would be very much pleasing in the long run. Aggressiveness will only result in impulsive trades which should be avoided at any cost.

 

[Decub]

And I wonder why a trader will trade aggressively. Some say that seeing or trading Forex in a do or die approach can sometimes help a trader make some huge profits but in the real sense and if you take it from a fair view and in a longer run, you only end up getting some huge losses along the line.

 

[sindarin]

In sports we can be aggressive. Forex is a mind game. How and why should there be an aggressive response to price movement. Aggressiveness, whether it is in the form of higher lot size or frequent entries, always results in margin call followed by dilution of positions. It is always better to trade using a simple strategy with calm frame of mind. The results would be very much pleasing in the long run. Aggressiveness will only result in impulsive trades which should be avoided at any cost.

We can be agressive also, you know scalpers? they are agressive type of traders that even open more position and also more than one position for the same currency sooner after the other position has been closed, If traders know what they do the aggressive style will bring a lot of profit.

 

[Decub]

Well, you might be right but I think that system of trading could be seen as trading smartly. It is a trader's experience that teaches him how to become smart enough to take advantage of such circumstances. Being aggressive might help some traders seize the opportunity to make some pips but for the most, it is a very wrong and faulty approach to trade.

 

[budado]

Its okay if we start in forex aggressively. The more we know how to trade the more we can end up having big income in forex. I'm so focus now on doing something good in forex trading and I do believ I can really handle my account in here without any problem.

 

[Pettyeve]

A trader should not trade in forex with aggressiveness. If he it she is, his or her mind will not be at rest when he or she is opening orders. Whereas some of the times, a trader will want to hurriedly trade over pairs, trading with aggressive attitude will make him or her lose.

 

[kasual]

Aggressive mean traders risking high margin in trading. The goal is chasing big profit per trades. However, it happen when traders get profit only. And if traders suffering loss result, they’ll get high decrease impact to the capital. Such trading approach allowed but the risk in line still with the potential gain.

 

[Decub]

When a trader becomes aggressive in earning, he increases the risk of losing with a long margin, when he is aggressive in learning, he increases the tendency to understand Forex. Being aggressive definitely would have some negative impact on the trader and it would be better to see Forex as a slow and steady business.

 

[Pettyeve]

The traders who will be trading with aggressivenesss are the traders who are not having the enough trading knowledge. They will be thinking that in other for them to be able to make profit, they have to trade with their anxiousness but that is not true.

 

[budado]

I guess when we feel that we want to earn more we force ourselves to trade and take a lot of risk. I do know that I can make so much profit in forex if I'm going to trade bigger lot size. This is really hard to control especially if the trends is going side way and I don't earn much. And this I end up trading aggressively and loss money.

 

[TenkoFX]

Been aggressive in trading is really good but it acquire alot of knowledge and experience cause you have to be compitent at any way the market move and also you need to react fast to your trade when it is neccesary in other to get profited at the end.