Traders with low risk get more profit in the long run
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Success at Forex, the story of "The Hare and the Turtle" told by Aesop.
We all remember the funny children's cartoon "The Hare and the Turtle", based on Aesop's fable. They once bet the Hare and the Turtle on which one was faster. The Bunny Hare hunted, looking at the clumsy and slow Turtle. He'll outrun her in two jumps. Wise Turtle was silent, knowing her rival's impatience. So she was confident in her victory, hoping that sweet Zayushka would be distracted by all sorts of trifles. The turtle was moving towards the finish line in small steps. And the impulsive and unrestrained Zayushka ran away on his own business.
At the end of the fable reasonable and confident Turtle turned out to be faster than the fast and frivolous Bunny, who was arrogant, impatient, distracted by other things instead of focusing on the race and win. To become the winner of the race at Forex, traders, especially beginners, are advised to remember the children's fairy tale and to trade like a wise and judicious Turtle, which moved to success slowly, slowly, turtle step. Unlike the emotional Bunny.
Turtle vs Hare
Unfortunately, fickleness and emotionality served a bad service to the fast and fast Hare, who was physically more prepared for sprinting.
That's what happens in trading. Emotionality is a bad advisor on Forex. Due to the ability to panic, get upset, or on the contrary, stupid greed, a trader can easily lose his capital.
Of course, many may object. After all, there are so many stories among Forex traders about fantastically profitable trading that look like a sniper shot.
However, it is known that competent traders who trade using a commercial strategy, from which they do not deviate one step, use risk management, gradually accumulate large funds on deposit and do not lose their savings by the end of the race.
Turtle's strategy, especially in the long run, is more efficient and profitable than Bunny commerce. The author of the article is of the opinion that low frequency trading is more profitable and efficient in the long run. Forex Trading: Marathon or Sprint?
In short-term trading, experienced traders can easily catch luck by the tail by making several profitable trades. Like Aesop's Fairytale Hare, who initially overtook the clumsy Turtle by leaving it in the dust on the road.
Successful traders have not only good knowledge in the world of finance, but are also disciplined, not one step back from their line of behavior in Forex. Successful traders do not succumb to the temptation to increase the buying and selling regime using excessive levers. Like Turtle, they keep to the slow pace of trading they chose in the beginning.
Bunny traders spurt out all their strength at the start of the course, without saving any energy for the rest of the journey. After a successful trade, they double the risk on the next trade. Many traders, therefore, damage themselves after one brilliant trade or a series of good profits. Borrower traders become excited and scattered instead of being calm and focused.
Emotionality in trading plays an evil joke with traders. They lose their trading abilities, increase risks and lose capital.
To win, you need to save your energy to the end, like a running marathon. And count on all sorts of extraordinary circumstances in a highly improbable trading environment.
At Forex, the trader chooses his own pace, so as not to break off when running a marathon. You should save your capital instead of losing it at gambling rates in the market.
Professional traders do not participate in the short distance running, they run a marathon.
Turtle takes the prize
You could say that at the beginning of the race Turtle had no chance to win. However, with minimal chances, she won the main prize, overtaking the Hare. Often such situation on Forex occurs among traders. At the beginning of the journey each of the traders may have the same capital. But one will be successful and rich, and the other will lose all his money because of the wrong strategy. Trading on Forex depends more on the merchant's ability to manage his passions and money than on the initial amount of capital. Consistent traders are always successful.
A successful trader like Turtle will save his money to stay in the game for a long time. It is better to make fewer deals, but to be sure of their profitability, even if it is insignificant.
Traders with low risk get more profit in the long run. In the opposite case, traders who like risk lose much more than those who have small accounts, but have the right commercial psychology.
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