2 out of every 3 trades, or 3 out of every 4 trades, or 4 out of every 5 trades, but he sticks with his plan all the way on every trade, win or lose. He may have 3 losing trades in a row, but on the 4th trade he continues to follow the plan exactly. He doesn't deviate from the plan because he's had a bad streak. He doesnt exit a trade until his plan tells him to.
Sticking with a predetermined plan, and not deviating from it, is the key to successful trading. Some traders can win 3 out of every 4 trades and still end up losing money. Why? Because they exit winning trades too early, turning potential big winners into small winners or even losses. The only way to become a successful trader is to let ALL of the trades play out according to a successful predetermined plan.
Another important element of trading is money management. Improper money management is without a doubt the biggest reason traders lose. If a trader has too much money at risk on any one trade they will have a much greater tendency to exit trades too early. It's very important that you know how much money to risk on any one trade, how to manage the trade, how to protect your profits, and how to exit a trade. These elements must be learned if you want to become a winning trader. Learning these important rules can help you become a successful trader.
If you would like more information about trading please visit http://www.ForexTradingRules.com to learn about The ForexPower Trading System, one of the hottest selling strategies on the web today.
Search for more information about Forex Daily