The Best Foreign Exchange Trades
All foreign exchange traders are looking to complete the best trades possible. There are many trades in the history of the market that are considered to be the best However, when you look at your trading you need to consider what the best is for you. While most traders will say that the best trade is the one that makes the most profit there are others who have a different idea. It is important that you understand what the best trade for you is.
Is Foreign Exchange Profit All There Is?
When most traders think of the best trades they think about Andy Krieger and George Soros who made millions off a single trade. This leads to the conception that the best trades are the ones that make you the most profit. While it is important to make profits from your trades you have to consider whether that is all you should be looking at. You need to question whether the act of making profit outweighs all other aspects of the trade.
What is a Bad Trade?
To put the best trades into perspective you have to know what a bad trade is. Most traders will state that a bad trade is any trade that loses you money. However, bad trades are also trades that do not use your trading strategy or divert from the systems you have. Any divergence from the system needs to be considered a bad trade because it lacks consistency.
Following the System
The first trait of a good and the best trades is that they follow a system. Once the trader has created the system they do not divert from this because that creates a bad trade. When you follow your system you ensure that you can replicate the trade. This is important if you want to make the profits again when the market conditions are right. Many traders state that the best trades in forex history cannot be replicated and this is true. However, these trades did have plans that they followed to the letter and there was no divergence.
Can a Losing Trade be Good?
A lot of new traders wonder if a trade that loses money can still be considered good. The fact is that some traders do consider losing trades that followed the system good. This is mainly due to the goals these traders will have. Ideally, you do not want to have goals that are monetary in nature. This leads to additional risks being taken and mistakes being made. The goals you should set need to be process driven. Once you have the process of your trading perfect the profits are sure to follow.
When you consistently trade in one manner you are able to identify the weak parts of your system and rectify them. These weak parts are often what lead to losses. Of course, there are times when you lose on a trade for no reason other than a change in the market that you could not foresee. At these times you have to accept the loss and continue trading according to your system.