They enter the market like a breeze and leaves the market like a storm! WHO?
Ever thought about your trading style? Are you a conservative trader, defensive trader or aggressive trader?
If you are more confident in your anticipation without confirmation. If you care less about where the market is actually going in your moves. Your approach is AGGRESSIVE!
This trading style is all about risking more to earn more. That’s why it can ruin your capital quickly. So, be cautious and start reading: How to be an aggressive trader?
To become an aggressive trader, you need to add up winning trades gradually. Holding larger moves is another easy strategy. Keep adding the size of fresh highs and lows is also aggressive in approach. Set a high risk-reward ratio. The right approach is to play quick play but play safe.
To adopt this stormy style, one needs to get more experience and education. For beginners playing like this is very dangerous.
Keep scrolling to read 6 aggressive trading strategies plus the ways to improve aggressive trading psychology!
What Is an Aggressive Trader
Aggressive traders are those who follow an aggressive approach in trading. It means they are always ready to take the risk to achieve high rewards. They don’t tend to have a bigger investment portfolio. They try to withdraw their profit as soon as possible.
Such traders are very quick in making a decision. They get more advantage of the situation when the market show fluctuation.
When it comes to risk, the trader will have to show high patience. They know how to strive off in the money market taking a risk. This takes time and experience.
6 Aggressive Trading Strategies
What are the most aggressive trading strategies? It’s challenging to trade in a macho style. This style can risk your capital more if you trade without cautious.
In this post, we aim to deliver 6 aggressive but safe trading strategies. Let’s check out the detail:
1. Increase Winning Trades Gradually
When the market goes in your favour get more advantage of it. Try to add up the number of winning trades. When the market pauses, it’s better to take a break.
This strategy depends on how much money you make when you are right and how much you lose when you are wrong.
When you start with the profit sign, it is an evident fact that the market is in your favour. Capture these moments and add as much winning trades as possible before the market moves in the opposite direction.
2. Hold the Larger Moves
When you try to be defensive you think more about scaling the stuff in the right direction. On the contrary, when you are aggressive, you stick to your position. You know well about your entry and exit points.
You are familiar with the points when to hold the trad despite the market move. Don’t break your own rules. The aggressive trader is not much concerned about market moves.
He knows when to put full-size position and confidence on each move. This trading style needs much time to master. If you are a newbie, stay away from it.
3. Make Aggressive Entry
Trading in this style means to make an aggressive entry at the initial level of the price move. It’s all about catching tops and bottom at the right time. For this trading style jumping in the middle of the trading, positions have no value.
It all works with the timing of the market. It also depends on your skills to pick a good and accurate price level.
Furthermore, it also depends on your ability to take a position when the market starts moving. Ask yourself: Can you do so?
4. Be in the Market Most of The Time
The aggressive trader keep eye on the market consistently. Make sure the trading environment is conducive to your trading strategy.
For this trader need to be in the market frequently. He never tries to miss any opportunity to make a profitable trade.
When the market moves are against your expectation. It’s a better idea to stay aside. When you try to stay more updated you actually move your risk.
5. Add Size into fresh lows/Highs
This strategy is super-aggressive. It’s all about selling at lows and purchasing at fresh highs. Though it’s impossible in normal market conditions. You need to watch out the market moves seriously.
For this strategy, the market has to be in the right direction. That is all about following the trend. They should focus on both levels i.e. stronger and weaker ones.
6. Increase Risk, Increase Reward
To be aggressive mean increase risk and increase reward both. It’s good to be cautious but at the same time be an opportunist.
Though smart traders think about building profit rather than cash out. But in this trading style, you need to cash out as soon as possible. The 1-minute scalping strategy is a fine example of being aggressive.
Aggressive Trading Psychology
To make a quick decision, you need to get command over emotional instinct. That’s why it’s important to understand the role of psychology and risk management in aggressive trading.
If you are by nature less passionate, this style is not for you. Below are few tips to follow if you want to improve aggressive trading psychology:
Be Consistent
Whether you are defensive or aggressive in trading. Consistency is the keynote to succeed. You need to follow one and only one strategy. In this type of trading, the risk-reward ratio is very high.
So never use it with the low capital account. This trading style is more suitable with a large accounts size and more experience. Newbies stay away!
Say Big No to Setting Large Stop Loss
Some macho traders think that they should never use a stop loss at all. They are wrong in the sense that stop loss is essential. But setting it too large can be another mistake.
They should never try to enter in many trades at the same and close the profitable trade. It also does not mean to let the negative position open for a long time.
Need More Active Management
To be a violet trader, you need more active management skills. Sometimes the trader has to handle multiple transactions at the same time. Sometimes trader has to average out the first trade using strong trading levels.
They have to make several entries. It’s a better idea to handle some trades as day traders and others at the end of last months.
Is It Good to Be Aggressive Trader to Make Money in Forex
Trading lovers listen! An aggressive trading style is not suitable for everyone. It’s only for those who have steel nerves. It means they have super control over their emotions.
Assumptions and anticipations are keynotes of this trading type. They open and close positions based on assumptions.
We believe if you can aggressively trade like the market makers you can live off forex trading.
If you are not good at making predictions never try this style. One thing more there is the logic behind every prediction. Expert traders figure out the reason behind every move.
You need to be more knowledgeable if you want to be an aggressive trader. For the novice, it’s like hell. It can wipe off their account in a moment.
Moreover, A good forex broker is a must of an aggressive trader. We found ICMarkets is one of the best broker scalpers because of the lowest spread for every ECN client.
Frequently Asked Questions (FAQs)
Are you an aggressive or defensive trader?
Very cautious trading in fear of not losing any money is termed defensive trading. On the other hand, free trading based on anticipation of price move without confirmation is aggressive trading. Check which is your style and guess!
How much money can a swing trader make?
The reality is that most swing traders don’t compound their account. SO, it’s difficult to get the data of their average profit per day. They stay at the income level where they feel comfortable. For example, if a day trader makes 1000$ a month, a swing trader can make 5000$ to 12,000$ per month.
Can you get rich as a day trader?
Few people focus more on raising capital get rich in day trading. Though it’s riskier and many traders fail to achieve the set goal. It requires a high level of trading discipline and consistency.
Final Words
In short, aggressive trading is not for novice traders. You should be able to make the right decision at right time. I would say this trading style is actually a test of your decision power. If you still want to adopt this style, try this first on a paper money account.
The most popular trading style is defensive and conservative. Aggression in the financial industry can elevate your emotions. So, I would never recommend this trading style to make a consistent profit.