The aggressive traders in the Forex market can’t make a profit in the long run. Though they manage to make some big profits, eventually they wipe out their entire trading account. Trading is not like gambling where you can test your luck. If you ever depend on your luck, you are going to lose money. You have to think this as the most sophisticated business and only then you will be able to secure the profit at trading. The naive traders always take unnecessary risk since they think the aggressive method is the best way to ensure financial freedom. Sadly, aggressive traders end up on the losing sides.
Let’s figure out some of the key reasons for which the aggressive trading method is ignored by the elite traders at Rakuten. After reading this article, things will start to change in your life.
Quick profit-taking opportunity
The aggressive traders are always looking for quick profit-taking opportunities. If anyone could have predicted the price movement without having any flaws, he could have made millions of dollars profit. Since trading is closely related to the game of probability, you need to be prepared to lose trades. Looking for a big profit or quick profit-taking opportunity increases the risk. You might be able to pull the trigger for big winners, it’s just pure luck. And luck is something which you should never rely on. Rely on your skills and try to learn the conservative style of trading so that you don’t have to lose money due to an aggressive approach.
Increases the stress
Let’s assume you can make a big profit by using an aggressive method. Being a human being it will be tough to deal with the intense moment. You need to trade the market with zero stress. Think about the Forex trading demo account. People can perform well in the demo account since they never trade with stress. So, if you trade with an aggressive approach, you can’t reduce the stress in trading. It will increase your stress to a great extent and slowly you start breaking the rules. There is no reason to try to become a millionaire by using such an approach. Learn to go slowly and focus on consistency.
When you use an aggressive method, you might even execute orders in the wrong pairs. Let’s say, you are analyzing the GBPAUD pair in the daily time frame. You have spotted a nice long trade signal and immediately you have opened the trade. After a few minutes, you have noticed the lot size is wrong. Instead of using 0.1 lot, you have used 1 standard lot. Such a silly mistake can cost your entire capital. And the aggressive traders are subject to such human error. On the contrary, those who rely on simple and conservative style, never make such mistakes since they always double-check the trade signals. Due to their steady nature, they can make a profit in the extreme market condition.
Makes you frustrated
One of the key reasons for which the traders become frustrated is aggression. The aggressive traders are always trying to secure a huge profit. They never want to stay in the sideline since they think money is always flying in the market. But trying to catch the big moves requires patience. And without having patience, you can’t survive in this profession. Trading might be a sophisticated business but with some minor tweaks, you can easily build your career. You don’t have to make things overly complicated by pushing yourself to the limit. Trade with logic and be a confident trader. Never try to recover the loss after losing some money. Stop getting frustrated with the losing orders. Find the reason for which you are losing money. Fix the problems and try to do better the next time. Be an optimistic trader to change your life.