Emotional trading will lead to blown accounts, bad trades, and less pips. Here are five great ways to trade forex without emotion on any chart.
Emotion has no place in forex. The false confidence after closing that big forex trade can lead to stupid risks. And the sting of a bad trade makes you want to try and ďmake upĒ those lost profits. Letís look at five easy ways you can trade forex without emotion.
1. Start Using Limit Orders, Now
Limit orders are a great way to trade forex without emotion. You set a price at which the limit order will execute. If the chart price reaches that level your limit order becomes a real trade.
A solid strategy is to set reverse limit orders at price areas called pivot points. When the price reaches a pivot point it often loses steam. After your limits are setup walk away. Being away from your charts as the action unfolds removes the dangers of emotion.
2. Turn On Those Automated Forex Robots
Only one method can remove emotion from the trading process entirely. And thatís a forex robot. Logical and precise by design. It crunches numbers without any feeling whatsoever.
The Reaper Forex Trading Robot
The Reaper Forex Robot doesnít have emotions. Except for its burning desire to eat pips..
A cold, calculated forex robot will execute the same rules every time. Set it up, walk away, and check back in a few hours. Itís the only sure way to trade forex without emotion.
3. Practice The One Trade A Day Method
Trading less is something few people ever learn. The urge to always have a position open is powerful. But itís trade quality, not quantity, that really matters in forex.
So start small. Limit yourself to one trade a day. Whether it wins or loses. Your focus will improve and youíll feel a lot less anxious to always be in the market. Having a good nightís sleep between your trades levels out any emotion by the next day.
4. Set It And Forget It With TP And SL
Opening trades and walking away is a simple method of removing emotion. How can you be upset about a losing trade if youíre not even aware of it? Thatís where setting TP and SL can be a big help. Theyíre ready made to help you trade forex without emotion.
A calm, level attitude is exactly what it takes to make steady profits.
With every trade set both a stop loss and a take profit. Then get up and leave the room. Eventually the order will hit a level and close itself out. When youíre not in the room thereís no emotion to mess with things.
5. Micro Lots Make It Easy To Trade Forex Without Emotion
Starting out with full lots is forex suicide. Not only will it inflate your anxiety but it can quickly lead to margin calls or worse. So lower the stakes and your emotions by trading micro lots.
At cents on the dollar, micro lots make mistakes forgivable. And without the stress of losing tons of money youíre more likely to make some actual profits.