I am sure that many intraday traders, and not only, are familiar with the situation when for the whole day sitting behind the monitor and forex trading, only 2-3 really high-quality signals come to enter market. You earn 15-30 points on each and that's it. "It will be small!" - very often you can hear from daring traders. So is it possible to increase the profit from the transaction without greatly increasing the risk at the same time? Yes it is possible. Whether you are a novice in trading or you have many years of experience behind you - you can confidently say that you do not earn serious money in the Forex market, for two very simple, but rather weighty reasons:
1. About 95% of the time the market is in flat. You can sit for hours before the charts in anticipation of a big move to replenish your trading account. And you can literally wait whole days and never see movement more than 40 or 50 points, which the price can pass in a few hours. And, of course, when a big movement takes place, it always seems that you have overslept or missed some time to enter the market. All that is really important is that you spend most of your time looking at how your position at some point in time is moving up or down a little, without bringing in a significant profit that you should talk about.
2. Another existing problem is yourself! I'm not trying to offend anyone in this way, but the whole point is that people are driven by greed and fear, especially in trading. If at a time when you have an open position, the price is really moving in our direction, greed is seizing us, and we wait a little longer in the hope of taking a few more points, but then we see how the movement disappears before our eyes, and, ultimately, , we get a small profit or go to zero. Or, even worse, we open a position with the intention of taking 30 points, and when we see that the price, having passed the 7 points in the direction of our position, begins to flutter for some time, we are seized by the fear that we have miscalculated and close the position with an insignificant profit , and then with annoyance we watch how the price continues to move in our direction having passed +30 points, but without us. "Fear of loss" overcame our greed, and we got a small profit.
How to be?
In occasion of the first problem (the market in a flat). Neither you nor I can force the market to pass 200 or 300 points during the day. And now as to the second problem. Greed and fear of loss can easily be overcome and even used for their own purposes, subject to certain conditions. We succumb to greed simply because we NEED to take enough points from the market to justify the time that we spend on trading. Since most of our trades do not meet this need, we end up wasting time trying to squeeze out a few more items from the trade, which is, in fact, good, and as a result, we lose almost everything. But what if there was a way to "squeeze out" a few additional items from any, even the worst trade? How do you look at taking 75 points from the market with its movement of only 20 points? Or, if the market has passed 30 points, and you earned on this 105 points? Or, at last, earn adequately, when the market passes 40 points, and you have made of this motion all 165 points? Is this enough to meet your needs in points?
Would you like, that for a day your profit increased by 75, 100, even 200 points? Of course.