Even you might be heard of some terminologies like types traders. Is'nt?
Have you ever wondered what it stands for?
Or How it will help someone to get profit?
Is it really exist? Is it promising?
If you got anyone of the questions above then this post is exclusively for you guys.
Forex traders typically fall into four different categories.
Mostly, Traders differ in the basics of preferred time-frames.
If anyone asks me, what kind of trader you’re or which one you wanna be?
I don't want to classify myself but I have some basic principles to follow.
No matter what kind of trader you are, have a look into this strategy.
Some simple maths will help you to be a consistent trader.
The amount risk per trade should be 1% of the total investment.
Whenever you placing a trade the reward of the trade should be more than the amount of risk for that trade.
Two friends(Dee & Lee) Depositing the same amount of investment in a trading company.
Trader Dee Maintaining a proper R/R ratio for each and every trade.
At the same time, Trader Lee just counting on profit only and don’t care about the R/R ratio.
In Long-term view, the trader Dee would make more consistency trades then lee.
Trade without valid Risk/reward may sound normal but the truth is different.
If it running on your predicted way means, no problem. Or else shut your emotions and pray for price back to normal.
The Risk/Reward ratio maintaining is a promising tool to make consistent trades.