You don’t wish to trade smaller positions forever, but would prefer to target better positions. But why is it a huge problem for most traders? There are traders who still make money and face better trades. But our focus is on the ones who struggle to take up higher trade positions. Why do they struggle to take up higher trade positions? What is the reason? What are the barriers they face? It is obvious for a naïve trader to struggle but what about the intermediate traders? They would have the experience in trading. They would have the understanding of what the market is! So why do they back off? Well, you should call to mind it all depends on the way you think. If you think trading is hard, it will probably be hard. So, don’t stress about the fact that Forex is complex. You should take it lightly. Even though others might claim that trading is hard you don’t have to listen to that. You should have your own thoughts and ideas about trading. However, there are certain factors that you should consider in order to target higher positions. We will set it out for you below!
Dealing with the losing trades
Do you know the best way to deal with your losing trades? Most traders don’t have any idea how to recover their losses. They just gamble and blow their account. Unlikerookie traders, experienced traders stay in the sideline after closing a losing order. They wait patiently until they get a very good trade setup in favor of the trend. Once they have spotted the perfect setup, they execute their trade with managed risk but with a slight change. Instead of using the traditional 1:2 risk reward ratio they aim for 1:3 or higher ratios to coverthe losses. This simple approach in their trading strategy makes things really easy in real life trading.
Protect your comfort zone
You should not expose yourself to losses. You might be trading a few good trades but that doesn’t mean that you are successful. You should earn consistent profits to claim that you are successful even then, it can turn the other way around if trades don’t work as you anticipate. You may think most traded currencies will increase your gains but then, you would be disappointed. So likewise, in the Forex market, everything doesn’t happen the way you want. There are chances for it to happen the way you never wanted. So, you should protect your comfort zone to target higher profits. If you are not in a good state, if your account balance is not enough to trade higher positions, for example then wait! You should wait until it gets better. You should wait until you earn the required amount of trading capital to trade higher positions. So, if you want to trade for higher positions you should focus on your trading account. You should check whether it is capable to face higher risks. If so, then go ahead and trade.
Go smooth yet solid
It is impossible to tradehigher position in a rush. If you want to trade higher positions successfully you should focus on smooth yet solid movements. You wouldn’t take up a job without understanding what the job is. You wouldn’t try something new without starting it small. Similarly, you shouldn’t trade higher positions all at once. Take time and think before you do something in the Forex market.
Focus on the simple terms
There are some traders who have the habit of focusing on the amount instead of the ratio. If they focus on the amount it would obviously look as if they are taking higher risks so they should look at the percentage. We don’t mean that you should risk money blindly, rather we advise you to take a step forward without being caught in the same place twice.