Hey traders… how is it going?
There are two possible things that we need to analyze when testing one system:
- Accuracy of the system
- The risk reward ratio
A lot of traders “try” to focus on the accuracy of the system. I get a bunch of emails asking me about how many times my system is right, etc.
forex, GBPCAD, ratio, reward, risk, signal
We always talk about strategies, indicators, whether we should go long or short, fundamental releases, etc.
But we never seem to care about the tools and equipment you need to actually take your trades.
And that’s what this article is about… to help you set up a trading station that will actually help you feel more comfortable with your trading.
Here we go.
forex, trading equipment, trading setup
Do you believe in luck?
Sometimes I do… and some other times I dont…
There are moments in life where we might get lucky… but when it comes to trading, I think luck is defined differently.
To me, luck in trading is: trading the right instrument at the right time.
forex, GBPNZD, signal, USDCAD
As you already know, one of our main jobs as traders is to scan the markets and try to find the instruments that have two things:
Clear S&R levels, this way we know what the market is doing and most important, what it is likely to do, and
Good profit potential, well, this one is self explanatory.
If you keep trading those instruments, you’ll get results.
Of course, sometimes the market will move against you, but it doesn’t matter, because above all, you’ll be focusing in your trading as a whole, a group of trades, not individual trades.
So you only need to make sure to win more when the market goes on your favor… and that’s it!
Forget about the accuracy of the system.
Most profesional traders will tell you that 80% of their profits, come from 20% of their trades.
Do you agree with me?
Here is the signal.
breakout, forex, signal, USDCAD
Hello traders, how is your week so far?
I have mentioned it before, and I will keep mentioning it because I think it could be the difference between a successful trader and a trader that will keep struggling to get good results.
Trading consistently is about choosing the right instruments to trade, and trading them at the right time.
That’s how some traders define as luck. But I’ve seen a pattern here, the more I do my analysis and make sure I trade at the right time, the luckier I get.
And it makes perfect sense, if you trade a currency pair because it has clear swings, clear levels, a good profit potential, most of the time, the market will move on your favor.
What we’ve got to do now is just repeat: Analyze – Determine which ones to trade – Trade
That’s it traders! That’s how the job is done!
But please don’t tell me that you are trading only one or two currencies, or that you are trading something because of the spread, or because someone else is trading it…
The only reason you should trade any instrument, its because it has both: a clear market condition and a good profit potential…
Does it make sense?
Ok, now here is what happened to my GBPCAD trade
forex, GBPCAD, signal, trade