You will surely hear many rules in the Forex market for becoming a successful trader. Knowing the factors or aspects won’t be enough if you don’t execute what you’ve learnt in the trades. Before you know about the win rate, make sure you have an idea whether you want a high win rate or want large winners. This article will be a game-changer for you, you will get some important notes which will actively change your win rate. Many factors like where to set stops, targets, entry, exit, indicators, and many more play an important role in increasing the win rate.
Boosting the win rate in trading is not so easy. Very few people in Singapore know the proper way to use leverage. Most of the time, the naïve traders are placing their trades with big lots without even thinking about the worst-case scenario. As a result, they lose a significant portion of their investment. Today, we will share some secret formulas that can boost your win rate in trading.
Make small targets for a higher win rate
The win rate has a direct relationship to the way the traders set their stop-loss and take profits. So, set the stop-loss properly to make profit in the trades and never set the stop-loss in a confused way. New traders often take on larger targets in their trades and this leads them to fail in the trades. Never trade with higher targets to make more money. Pro traders prefer smaller targets more frequently so that they can make more profits rather than losing.
While setting up a small target, never forget to maintain the risk to reward ratio. Trading with a low risk to reward ratio might result in a better win rate but it will reduce the recovery factor. Maintain a 1:2+ RR ratio in each trade.
Use stop-loss properly for a higher win rate
Many traders set their stop-loss randomly in the trades and think it won’t make any difference. Stop-loss is an important key factor in the Forex market. You can make effective profits if you can set the stop-loss properly. On the other hand, you can lose more if you don’t set the stop-loss properly. Setting the stop-loss order act as a game-changer weapon in the trades, try to gain more knowledge so that you can set the stop-loss order properly. The win rate will also increase at a higher rate if you set the stop-loss precisely.
The best traders at Saxo often rely on the Japanese candlestick patterns for placing the stops. They consider it as the most effective way to find the stops. Though it will be tough at the initial stage once you are good at analyzing the pattern, you will know why the pro traders use this method.
Don’t change decision often
New traders change their decisions more often and this is the biggest mistake they make in the trades. To see any visible results they should wait and observe the change and if it doesn’t help them to make money than they can surely change their decision. But without any valid reason, the traders should not change their decisions often. Pro traders always stick to their decisions with confidence and thus they can make profit. Always believe in your strategies and methods so that you can increase your win rate rather than losing in the trades.
There are also some other important concepts the traders should give importance but the above ones are the common ones. Try to use the same stop-loss and target rules for at least 30 to 40 trades and then you can surely jump into new methods and strategies if the previous ones don’t help you to make profits. Always remember that the market only allows people who trade according to the market and pay attention to all the movements to stay in the long run. So, never trade against the market’s movement if you want to make profitable trades and always keep learning to stay in the long run.