The term ‘low-hanging fruit’ implies that the fruit grows on a lower branch and is therefore easy to reach. In Forex trading terminology, this refers to making trades that are easy. Learning to identify such trades and taking advantage of it, will better your odds at succeeding in the market.
Traders need to shift their focus to low-hanging fruit trades, and here’s why:
Let’s explain this better with an analogy: Imagine you’re in an orchard and you’re hungry. You spot apples on a low hanging branch and pick a few. The entire tree is covered with apples, but you’ll have to invest time and effort to reach the ones on the top. It’s obvious that you’re going to pick the low-hanging apples and leave.
When it comes to trading, most Forex traders in Malaysia do the opposite. They’re probably attempting to pick fruits from all parts of the tree, thereby depleting their energy and resources. Being greedy while trading can destroy the wealth in your trading account. Instead, focusing on low-hanging fruit trades will prove beneficial and more profitable, in the long run.
Establishing the right mindset
The low-hanging trading approach is the best fit for those who don’t want to waste a lot of time looking for prospective trading opportunities. Remember, it’s all about quality over quantity, which means that you need to set your mindset to look for high-quality trades, and not on how many trades you make. Stop trying too hard to make money; otherwise you’ll eventually end up losing it all.
Wait for those low-hanging fruit trades to come to you. If there’s no trade that’s worthy of being ‘picked' then pack up and come back tomorrow. There’s no point investing in a low-probability trade when you’ll eventually find a lucrative trade waiting for you shortly.
How should you focus on it?
You need to know what to look for and study the market on a daily basis. This will enable you to seize the opportunity when it presents itself. Base your online trading philosophy on patience. Commit only when you find the obvious opportunity with a capital that you’re comfortable with losing. This way, even if the trade doesn’t turn out as you’d expected it to; it won’t hit you that hard. Such a calculated approach to trading is a complete converse of trades that have no basis and are equivalent to gambling.
It is vital to adopt a practical Forex trading strategy to gain a favorable outcome in the Forex trading market. To obtain professional insight on trading, WesternFX, a renowned Forex broker can help you conquer the Forex exchange in Malaysia. Get in touch!
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