If you compare the results of a professional trader to those of a struggling trader using the same strategy and equipment to trade, the pro trader is likely to have much better results. Why? Is the pro trader doing something different to increase their chances of scoring a winning trade? More importantly, what are the struggling traders doing to reduce the chances of having a winning trade?
This may be news to most of you, but trade entries are just one part of a winning trade. Having the confidence of getting into the trade and developing instinct are some of the things that differentiate professional traders from amateur traders. Scoring a winning trade involves both mental and analytical processes, and you cannot become a profitable trader consistently if the two factors do not work hand in hand.
Trust the Price Action
One of the easiest ways to increase your odds of scoring winning trades is by reducing your analysis of trading-related information. In most cases, you will come across different bits of information that reinforce the importance of fundamental research in trading. In truth, however, anything that has an impact on a market leaves behind a price-action trailer or trade charts.
You can use any day trading setup if you have reliable tools such as one that helps identify 3-bar patterns on the trading chart. According to some of the most experienced traders, what matters in trading is the long-term trend, the current chart pattern, and picking a great point to buy or sell.
Adopt the Mindset of a Professional Trader
We know that you can give different traders and exactly similar trading strategies to have different results. Your success in the market depends on other things. Having a simple trading method makes logical sense but does not mean you will score a winning trade. You need to follow the trading method you choose with discipline and manage the trading capital effectively.
Most traders only think about their rewards and profits while ignoring the need to manage risks and the reality that they could end up losing money on any trade. The concept is straightforward. If you understand that any trade could turn into a loss, you will be more careful with the trades you are willing to risk your money on. You need to adapt management skills to exploit high probability situations in the market.
Make Fewer Trades
Nothing is more exciting than making as many trades as possible to make more profits. However, the practicality and sensibility of this have been called into question several times. It is more logical to watch the trading charts and identify the suitable trading conditions before placing trade orders. Although every trade raises your chances of winning, it also makes it easier for you to lose.
Use Logic and Not Emotion
When planning on trading, always know when to get out before you get in. Working on your exit strategy before you start trading is the best way to manage your trade with logic and not emotion. This method of trade management vastly increases your chances of making money. Ideally, it would be best if you did not get any surprises. When entering a trade, ensure you understand the maximum amount of money you can afford to lose, and you should never go past the set amount.
Understand the Market is a Matter of Chance
The forex market is influenced by numerous factors beyond the control of any single entity. What you may see as the perfect setup this minute may change drastically over the next few minutes without any warning. You do not have to throw your strategy out of the window. It would help if you learned how to accept your losses and use them as a lesson.
Similarly, know when to avoid making erratic trades on the illusion that you want to score a winning streak. Most professional traders recommend walking away from the market once you have generated enough profit from a winning trade. With greed, you are more likely to enter new trades without proper analysis and research, making it easier for you to lose money.
Having a reliable trading plan and following it to the fullest is key to increasing your odds of scoring a winning trade. Always trust the price action and adapt the mindset of a pro trader. Making few trades, basing your judgment on logic and not emotions, and accepting that the market is a coin toss can also help you improve your chances of winning.