Forex Trading: No Such Thing as a "Perfect" Trade

May 8, 2009 by Trader Rich

In currency trading, a high number of average trades can more than make up for one “perfect” trade

Many times in forex trading (or any other trading for that matter), it is tempting to look for that "perfect" trade. The perfect trade is the one in which your timing, the amount of money you put on the line, the market conditions and everything else align so that you make the maximum profit for a relatively small investment.

Unfortunately, the "perfect" trade rarely comes along. And you can spend a great deal of money trying to orchestrate the perfect trade — only to end up losing a lot. Instead, suggests Pipsychology on Baby Pips, consider making "average" trades on the FX market:

Rather than look for the "perfect" setup, just find a profitable setup. Yes, you might make less profit per trade, but you’ll feel better. Compare how it feels to strive for perfect standards versus average standards. You may find that you prefer average standards since you’re more relaxed. Since you’ll be putting on more trades, your profits will improve.

In the end, it’s all about winning more than you lose, and taking the profits that you can. When you focus more on good money management and reasonable risk control — and you are willing to take profits even if they are average — you are more likely to succeed in the long run with currency trading.