Minimize Missed Trades to Increase Profits
Missing trades can be incredibly detrimental to your bottom line. It’s costing you big, we need to fix it. The number of times we’ve said ‘I knew I should’ve taken that’ or ‘why didn’t I see that setup, I should be in it’. This is a very real issue for a lot of traders.
Missing trades manifests in numerous ways. Multiple causes lead to missed trades. Once past this hurdle, we can begin to increase profits and the efficacy of our trading.
So how can you minimize your missed trades? Here are some ways:
It’s hard to address a problem if you can’t see it. What made you hesitate? Were you distracted? How often did the pair go your system’s way? What could you have done to avoid missing those kinds of opportunities?
Having numerous data points of the exact same setup and concrete proof of edge will do wonders for your execution. Having a digest of all of the times the trade setup has occurred will give you quantitative and qualitative back-up when making trading decisions. Keeping a ‘playbook‘ of the trade setups can help immensely so that you know exactly what you want to see.
Logging in your missed trades on a trading journal could help you identify your triggers and push you into sticking to your plan in the future.
SET TRADE ALERTS
If you don’t have the time to watch your charts or you’re not around when good opportunities usually pop up, then consider setting price alerts or using entry orders for your trades. You could even step it up by designing a simple mechanical system on your platform.
Once you have mapped out markets and are aware of the areas where you want to execute, set a price alert. This way you’ll be notified when the price is where you want it to be, and have no excuse for missing it.
HAVE A SOLIDIFIED AND RIGOROUS TRADING PLAN
Every business (forex trading included) requires a business plan (trading plan). Unless you have taken the time to write down a set of rules that you can and will follow, it’s likely your trading will remain unfocused and directionless. Make a plan, have rules, follow them, set goals that are realistic, and you will achieve them.
IT’S OK TO LOSE TRADES
This is a corollary to the last point. If you have fear of losing and lack confidence due to this, you need to remind yourself that it’s fine to have losing trades. It’s unavoidable for all traders. Accept that losing is as much part of trading as winning. One or two losses won’t matter if you trust your system and you look at the big picture. Getting used to losses is the only way that you’ll be able to focus on the process instead of profits.
See if you can apply some of these tips and increase profits in your trading. The only thing you can control about trade is your approach and the way you execute it. The outcome is totally out of your control. You can’t force a winner and it’s not your job as a trader either. Let probabilities play out and trust your edge.
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