The Four? Types of Forex Trades

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Many people, when you ask them to name the different types of trades they can place, may answer with something like. “Well there are pending orders and market orders.”… If you press them for more, they might say, “Well there are buy orders and sell orders, there are buy liimit and buy stops, there are sell limits and sell stops.” All of which is true, however, these are types of ORDERS not types of TRADES.
I am discussing this with you to help you see that if you just trade by the seat of your pants and don’t have rules and some kind of plan about where you place stops and take profits, what your limit is on reward to risk, time of day or, day of week for that matter…

If you don’t have this plan or strategy in place. It is not possible for you to place the type of trade that is required to be successful in forex trading.

That type of trade is a GOOD trade.
What is a ‘good’ trade?

A good trade is a trade that is in full agreement with your rules and plan. It is that simple. One of the big mistakes, both monetarily and psychologically is that we to often tend to associate the ‘goodness’ of a trade with how much money it made us when in actuality it should be associated with how well it is in agreement with our trading plan.
When we fall into that trap of associating ‘good’ with profit. We find ourselves losing money and beating ourselves up for being foolish, stupid or a loser. Or even worse shifting the blame and not excepting responsibility for improving our situation.