What Are Forex Winning Strategies? What’s the worst part about being an investor? Of course, it is serious damage in a transaction. Nothing can make your day worse than seeing your best bet take a dip and turn red.
Losing one or two trades, however, is a natural part of being an investor. Losing five or six transactions in a row is a completely different story.
The feeling of winning is a feeling inherent in every person. With the right strategy, of course, you can win. As long as you apply the markets and your analysis well.
In this article, we will present you with the right strategies to break the losing cycle and recover from successive losses.
What Are Forex Winning Strategies?
Let’s clearly define this phenomenon, which is every investor’s nightmare. Losing streak occurs only if more than one loss occurs even after:
100 % you have followed the trade rules you set
You stuck to the same trading plan that gave you positive results.
However, if your losses occur because you deviated from your plan or broke a rule in the middle of a trade, in which case the loss is only a negative consequence of your actions. The best solution is to go back to your trading plan, stick to it and follow your trading rules religiously.
If you’re really on a losing streak, you have to deal with it properly. Decommissioning. Analyze and reanalyze your transactions. Don’t trade your losses.
But after you’ve done all this, what happens next? Because your next move may be the most frightening. So the emotional roles you experience can make you a little nervous.
Pay Attention To Demo Operations
Using a forex demo account is very important for developing your personal skills or new strategies. Doing so can help you with a few things:
Regain your confidence and control
Regain faith in your trading plan
Eliminate your loss-avoidance mindset
Protect your capital
After a losing streak, your confidence disappears. If you don’t regain that or the right trading mindset when you open your next trade, you’re putting more of your trading account at risk.
More importantly, demo trading can help you readjust your focus on trading rather than the outcome of an individual trade.
Trade in low volatility markets
In Forex, certain currency pairs are the least variable. Because they move less than 100 points a day. For example, AUD / USD is the least volatile among the main currency pairs, and cross pairs include AUD / CHF, CAD / CHF, CHF / JPY, and EUR / CHF.
If you trade with these currencies, your risk risk is lower. Although this means that your profit is also lower, you can rebuild your account without losing more of what’s left of your capital.
What’s more, you’ll be able to regain your winning mentality and get back into the routine of consistently making profits.
The 3: 1 Reward-risk ratio, for example, gives you the potential to make three times more profit than you put at risk. This increases your profitability, allowing you to recoup your losses and bounce back from your losing streak.
But for best results, you should adjust the risk-reward rates according to your entry / exit points, Time Zone, and trading environments. If you’re Scalping, the 3: 1 Reward-risk ratio can work against you. Therefore, you will need to earn 9 pips immediately. However, if you reduce your position size and expand your stop, you can achieve a desirable risk-reward ratio.
Reduce the amount of leverage you use
Lower leverage prevents you from performing larger volume transactions due to lower margin. As a result, it reduces your exposure to risk. This can also help you eliminate your focus on winning or losing so you can enjoy the trades you make.
You can further protect your account by using tracking stops that reduce your losses if your transaction is against you.
Create a new transaction plan
Remember the definition of a real losing streak? If you want to increase your winning rates exponentially, you may need to reconsider your trading plan and rules and make minor changes to them. In the end, you stayed true to them, but you still had a lot of back-to-back losses. Small improvements can make a big difference.
For example, increase the time spent processing from two hours to three. Scan charts over the weekend if necessary. Perhaps all you need is more time to analyze or read the news to avoid large-scale drops from your account.
Increase the frequency of using pending orders. Don’t miss the best trades or waste time when markets aren’t moving. Pending orders also allow you to test a new strategy after a losing streak.
Don’t risk more than 1% of your account to minimize your losses and avoid over-trading.
Automate your processes
Automated trading comes with several advantages that allow you to retest your strategy at a larger sample size, for example using more time frames or currencies.
Doing so gives you an unbiased idea of the effectiveness or loopholes of your trading system. So you can review or fine-tune it more efficiently. Once you’ve developed a near-perfect system, you can use it to get back to live trading. Hence without your feelings or human mistakes.
Use Utility Processing Programs
Different tools provide different ways to enter and exit the market profitably, such as finding the right trading setup, managing risks, and avoiding market traps.
Some of the trading tools you can use include:
Economic news calendars to conduct fundamental analyses based on a country’s economic conditions and determine the relative value of its currencies. This is a built-in and free feature on the MT5 trading platform.
The currency strength dashboard shows which currencies are strong or weak.
A currency correlation tool indicates whether a currency pair has a positive or negative correlation.
A pip calculator tells you how much the value of a pip is relative to the position size of the local currency.
Technical indicators such as the Relative Strength Index (RSI) and moving averages can help you identify bull traps.
A winning streak can happen to anyone. What matters is what you do and how you react when it happens. Forex winning strategies vary for each investor. If you have no knowledge, you can apply the basic information.