Focus on Risk and Ignore the Rest

Yesterday’s webinar at Admiralmarkets was again a great success with wonderful trade setups such as the EURUSD short, GBPUSD long and AUDUSD long. Remember you can always join the live sessions on Monday by clicking on admiralmarkets.com – education, webinars, and signing up for free.

I made some great number of pips on these setups and am very content… When speaking to a trader, he asked me if it was a pity that I did not risk more than the usual on these winning trades. My answer was very clear:

A trader should never think about how much they could have made, but how much they can lose.

Risk is always the first thing on a trader’s mind. We can never “predict” the future, so we must treat each trade with equal importance, discipline and roughly the same risk & leverage. Only then can we find setups with (some) edge, which can contribute to building a long-term consistency.

Making a big sized risk on 1 trade and hoping for the big win is not a strategy… it’s gambling and luck-very similar to throwing a coin like in the image on the left. Long-term profitability is all about making more profits with your wins than losses with your losing trades on a consistent  basis.

Many green pips,
Tarantula FX