Never run and gun in Forex

There are many basic rules in Forex that many traders do not follow. The traders think they are on their own and they can make money as their wish. They place trades without analyzing the chart, they do not set any stop-loss and they lose money. If you want to become successful, you need to know how to place the right trades. This article will tell you one very important lesson that is not to run and gun.

 

The aggressive traders can never do anything in the Forex market. They might say they have very big winners but if you assess their portfolio, you will see they are still on the losing sides. Making money in the online trading industry is very hard and it requires pin perfect execution of the plan. So being an aggressive trader it’s really hard to change your life. You need to exhibit strong patience in the field of investment industry to change your life. There is saying, patience has its own reward.

 

On the contrary, the conservative traders are always following the safe side of the retail trading business. They analyze tons of data before placing a trade. In a nutshell, they follow an organized way to trade the live assets. Trading CFDs is very easy for the experienced professionals. Many people in Singapore is now making tons of money just by using high leverage accounts by Saxo. So if you are experienced in this industry, there is a good chance you will make a decent living out of trading. If not, start using the demo accounts to establish yourself in the retail trading market. Know about the market movements and assess other people trading strategy. Work hard to develop your system within a short period of time.

 

What is run and gun in Forex?

First, you need to be clear about the concept. It has come from the war field where soldiers used to run and shoot at the enemies. It is very easy to assume that not all of their shots were successful. Most of the shots missed the enemies and only a few were successful. When you are trading in this industry, you need to have a clear mindset. You cannot run after the traders and place every time you see a good trend. Running and gunning means you are placing trades at every possible trend you see on the chart.  It is bad for your growth as it will not let you see the movements of the pairs. If you want a successful trade, you need to wait like a sniper.

 

Why is running and gunning not a good strategy?

If you think deeply, you will realize that this concept goes with the overtrading. When people over trade, they do not look out the trends but wait for a movement. When you are analyzing and placing trades, it is not possible for you to know the best trends. You place bad trades and you lose the money.