How Many Trades Should I Be Making?

Filed under: Learn Forex Trading |

Of course, there is no real static answer to this. Under trading and over-trading are big problems for anyone involved in forex trading and the situation has to be constantly monitored. How many trades that you make ultimately comes down to the trading methodology that you are employing. If you are riding long-term trends, then you will not be making many trades and your trades could last for months or even years. If you are day trading, then you will obviously be making many more trades.

 

In the case of price action trading on the daily, 4-hour, and 1-hour charts like I do, if you are checking your charts say, eight times in a day (this means checking the 1 hour charts eight times every day for any price action setups, plus the four hour charts three times and the daily once), then you should average a couple of trades per day. So this would be approximately sixty trades per month. I do check 25 charts though, so this figure only applies to checking all of these charts. If you are trading fewer forex pairs, then you will obviously have fewer trades.

 

You should know deep down if you are under trading or over-trading; so you have to learn to be honest with yourself and your trading methodology.  If you are taking a trade that has a weak setup because you want to get back into profit for the month, then you are probably over-trading. If you are not taking decent setups because you are already carrying a loss, or because you are in profit and you want to protect that profit, then you may be under trading. So keep an eye on the frequency of your trades and be sure to record every trade for later analysis and review your performance regularly.

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