It is often said that the hope makes live, however too much hope can be bad for a forex trader. To hope for something, such as profitability, can be motivating, provided that the expectations of the trader stay realistic and its objectives of gains are attainable. Outside of those who have the reasonable hope and understanding, to success in forex trading, some traders encrent the hope in their sessions of trading and this often leads to their loss. Have hope when you are trading, it is to have faith that the scenario that we have projected will occur. This means that we are positioned in the market and our trade is underway, as the market stagnates, or does not evolve in the direction we have chosen.
If hope takes the upper hand on us, this can push us to make decisions that may be harmful for our trading. For example, after having seen the course evolve in our favour but did not reach our takeprofit, it turns around and it is even on the point of reaching our stoploss, as we hope, we decide to reverse our stoploss. In this case, we increase our risk-taking, if one has a baseline risk of 1% per trade, may be we will go to 2% or even 5% ?
Hope can be a spur to make trading emotional, therefore each time we enter to the purchase or sale on the market, we must have a risk management seine and controlled and simply accept the outcome of our trade. It is not advisable to change horses along the route and to significantly increase its risk because this will lead to the cramage account at the end of a few trades. A trader must have confidence in his trading plan and money management, if he has trouble to accept that the market turns against his prognosis, then a possible solution may be to set up his trade in a situation of breakeven when it starts to be profitable to a few pips.
The trading strategy, money management is rigorous, the notions of risk reward ratio and breakeven well identified will allow you to eliminate hope from your trading which will eventually be based on rational decisions and in favour of the chances of success. All this can be learned through the course of trading and training in forex, we recommend that you strongly consider this type of educational resource.