If I only had a time machine, I know what’s I’d like to do: know in advance which trades to place, when to get in and when to get, and become a billionaire.
Well, fantasy aside, it is possible to become a Forex Time Machine by changing your trading habits.
While you can’t know 100% for sure which trade will end up a winner and which a loser, you can do a lot to make sure you know how each trade will end regardless of where the market is going.
The first step is to follow a trading method and not trade blindly. This will help you place high probability trades which is the first key to generate higher profits.
The second key is to minimize your risk. Unless you have tight control over your risk, you will have huge losses sooner or later. Therefore, risk control comes first, well before taking profit.
To minimize risk, always place an initial Stop Loss order. This limits your potential loss and keeps your money safe.
But trading like a Forex Time Machine isn’t just about using an initial Stop Loss. You have to make sure you manage your trade as you go along. To do that, you need to use a Trailing Stop order.
The trailing stop follows the market price. As soon as your trader achieves a certain profit margin, your trailing stops moves to the entry price. This means that the worse you can do is to breakeven on this trade.
Now, all that remains is for you to decide where you’re going to exit the market and take your profit. You’re not going to sit for hours trying to capture the most profit. This wastes a lot of time and is hard to get right.
What you do instead is place Take Profit orders which exit the market at predetermined profit margins and secure your profits from this trade.
This is what trading like a Forex Time Machine means: being able to foresee how each trade will end and making Forex a low hassle, low risk, and high potential business.
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