Some traders join forex prop firms to make a lot of money quickly. They come in with the wrong mindset, see every trade as an opportunity to accomplish an unrealistic goal, and end up blowing their accounts, losing everything! What a destructive motif for trading!
You see, always chasing big wins is one of the worst things you can do as a prop trader. It’s a recipe for disaster.
The much better approach, I would say, is to focus MORE on small wins. Small wins may not seem like much at first, but they compound over time and can lead to huge profits.
In today’s blog post, we will talk about the power of small wins; four benefits or reasons why you need to focus more on small wins in prop trading:
Chasing big wins is not a sustainable trading strategy. It’s simply too risky. When you’re chasing big wins, you’re more likely to overtrade and take on too much risk. This can lead to large losses and even account blowouts.
On the other hand, focusing on small wins is a much more sustainable strategy. When you’re focused on small wins, you’re more likely to be patient and disciplined. This is essential for long-term success in prop trading.
When you’re consistently making small profits, it builds your confidence as a trader. This is important because confidence is essential for success in prop trading. When you’re confident in your trading abilities, you’re more likely to make good decisions and stick to your trading plan.
One of the most powerful things about small gains is that they compound. This means that when you make a small profit, you can reinvest that profit to make an even bigger profit on your next trade. And so on.
Over time, this compounding effect can lead to huge profits.
Chasing big wins is stressful. It’s like gambling. You’re putting your money on the line and hoping for the best. If you win, you’re ecstatic. But if you lose, you’re devastated and frustrated.
On the other hand, focusing on small wins is less stressful and more feasible. You’re putting your money in a low-risk investment and expecting a small return over time.
Here are a few tips on how to focus on small wins in trading:
Focusing on small wins is one of the best ways to become a successful forex prop trader. It’s a more sustainable, confident, and less stressful approach to trading. Focus more on it and build your account for success.