This article looks at those who set or get their forex trading strategies.
You could divide the world of forex traders into two groups. These two groups are the setters and the getters. All the traders in these groups use different forex trading strategies, but one thing will remain the same. Some of the traders will get the profit they want while the others will simply set the profit they want. There are many reasons why setter and getter are separate and you need to know what they are. When you know this you can ensure that you are a getter and not a setter.
Getter or Setter?
Before you can ensure that you are a getter you need to know what separates them from the setters. Both of these trader types will set a profit target that they want for a trade. However, only one set of traders will actually realise the profit. There are many personality and strategy points that create this difference. You have to understand both the mental and physical aspects of trading to ensure that you are a getter.
Entry Points in Forex Trading Strategies
Many people feel that what separates these traders is where they enter the market. This is actually not true because both traders could enter the market at the same point and one will get their profit and the other will not. Of course, this does not mean that you entry point is not an important part of forex strategies. You have to find the right entry point to ensure that you make any profit.
What actually separate the setters and the getters are their exit points, in particular the take profit point. Setter and getter will set a price target and this is where they set the take profit order. However, the setter generally does not get the profit because the trade turns before their order is triggered. The getter will have the profit because of where they set their take profit order. It is important that you consider the mental and physical aspects of setting these orders.
The first point of setting a take profit order happens in the mind of the trader. To ensure that you are setting the order at the right point you have to have a realistic expectation of the market. If you expect to make a larger profit then you are more likely to lose the profit. Setters place their expectations for their trades too high and this leads to setting their take profit orders too high.
The getters will be more realistic in their expectations. Of course, this often leads to the getter taking their profit too early. However, you have to consider whether you would rather take the profit early or lose the profit completely.
Take Profit Order
When you open your trade you have to set your take profit order. Of course, before you do this you have to calculate and analyse the market. When you complete an analysis of the market you are able to find out when the market could turn and where you should exit the market. This is important if you do not want to be caught when the market turns and you are not prepared for it.