Forex Trading for Beginners: #1: Try Not To Lose First In-Order To Win
- Smart Help
- August 30, 2022
- Forex Trading for Beginners
- forex for beginners pdf, forex trading for beginners, forex trading strategies
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The purpose of this article is to document the important Trading tactics which I’m learning and unlearning. I’m calling it My Forex Trading for Beginners log.
And my goal is to arrive at a sustainable strategy.
I’m not sure if that’s something possible, but that’s my journey into the seductive and luxurious industry of currency trading.
This forex trading for beginners article would be helpful for anyone who is relentless in breaking forth in the little-occupied space by successful currency traders.
Wish me luck!
Forex Trading for Beginners: Lesson 1: “Try Not To Lose First In-Order To Win”
- How did I come across this rule?
- What’s the purpose of this rule?
- How will I be applying this philosophy into my trading?
All these and more would be answered in the section below, so come with me.
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Forex trading for beginners: Lesson 1: “Try not to lose first in-order to win”
How did I come across this rule?
I came across this rule from a famous defensive-oriented football coach — Jose Mourinho.
It was the philosophy Jose brought to Chelsea football club when he joined the club in June 2004 and eventually led them to win their first English Premier League title — after many years of irrelevance on the English premier league table.
(With this defensive mindset — Jose Mourinho Chelsea won the Premier League title (their first league title in 50 years))
#When did Jose Mourinho join Chelsea?
Forex trading for beginners: Lesson 1: “Try not to lose first in-order to win”
What’s the purpose of this rule?
The purpose of this rule is about defense. It’s all about defending my interest on the trading market. And you probably know that my interest here is my forex account. I would be applying this legendary defense mindset to protect my account balance from the raging and roaring financial markets.
Next I will be documenting my efforts towards applying this “Try not to lose first in-order to win” rule to my trading tactics.
Forex trading for beginners: Lesson 1: “Try not to lose first in-order to win”
How will I be applying this philosophy to my trading?
- I will be using trailing stop loss
- I will be setting take profit 1 as breakeven on a Reward 1: Risk 1 ratio
I will explain in details below:
#1 By Trailing Stop Loss
Trailing stop loss should normally help me defend the slightest profit I make on the market. This will eventually lead to small profits, but it will be consistent.
And it should help me automate my stop losses and take profits.
The downside to this is that it may take me out of potential long term profitable trades — due to the fluctuation of the markets. The downside is strengthened in this quote from Trading View’s Instagram page:
(I’m understanding this concept of slow and steady gains — as scalping). And scalping is one skill I’m currently trying to learn. That’s because my trading strategy almost always gives little gains, and sometimes those gains flip hands to become negative trades.
An effective skill of scalping — would help me to take little gains effectively without allowing winners to end as losers. I’m giving a definition of scalping below:
“Scalping is taking many small profits as quickly as possible”
So if my trailing stop loss defense mechanism results in small profits, then that would be a good thing — because there are enviable scalpers in the trading industry. e.g. Bob Beckett.
#2 By setting take profit 1 as breakeven on a Reward 1: Risk 1 ratio
This is a good defensive money management tactic. It means that for every breakeven trade, I would add +1 to my account.
With those 2 points, i have come to the end of my log report on Forex Trading for Beginners: #1: Try Not To Lose First In-Order To Win.
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