How many trades per day should you make as a Forex trader?

Every trader should learn the basics of Forex, and then start building their own strategy and trading style. Moving on to this next step, one of the main questions is: “How many trades should I make per day, is there a maximum limit, and do I actually need to open positions every day?”

In this article, you will learn how the number of trades affects psychology, risk management, and the effectiveness of your strategy.

How the number of trades affects risk

No matter how good your fundamental and technical analysis is, opening any trade carries risk. It should be well calculated in the money management part, which requires having clearly stated rules for maximum daily or weekly account drawdown. In other words, don't focus on how many positions you open daily, but on the maximum percentage of your account that you can afford to lose.

For example, if your account is $10,000 and you assume that the maximum loss you can afford is 1% ($100) per day, then the number of trades does not matter. This 1% can be spread out over 2, 3, or 5 separate positions.

Taking too many trades, especially when combined with higher risk, can quickly lead to a significant decline in your account balance. Instead, prioritize identifying quality opportunities with strong potential for success rather than focusing on the quantity of trades.

The balance between risk and reward 

Balance, iron psychology, and discipline are the keys to successful trading and long-term results. When beginners opens their first account, he/ she has a huge desire to participate in as many trades as possible, because, after all, that's what a trader does, right? However, this is far from the truth. First of all, you need to decide what your style as a trader will be. It can be:

• Scalping - this approach typically involves executing a high volume of trades daily, primarily based on minute charts. It demands swift decision-making, substantial trading experience, and strict adherence to risk management;
• Day trading - again a relatively active style, with the idea being that all trades are closed before the end of the trading session. In day trading, timeframes higher than M1 and M5 are also being used but again at least a few positions per day are expected;
• Swing trading - trades are held for several days to weeks, and a trader can open just one position per week or 4-5 positions for a whole month. This approach is for traders who do not have much free time and prefer a more relaxed style.

Depending on the strategy you build as a trader, you will then have a clearer idea of ​​how many trades you can expect to make per day or week. However, if the technical or fundamental analysis does not show a good opportunity, it is better to step back and close the charts to save your money, as not every day is suitable for trading.

The psychological impact of managing a high volume of trades

Every course, article, or educational video for traders reiterates how important psychology is in trading. You’re probably tired of hearing it, but it’s the truth. First of all, it’s good to know that a large number of trades and constant decision-making lead to stress, fatigue, and lack of focus. All the emotional mistakes we talk about in trading come from overtrading and accumulating losses. This is normal human nature, especially when money is on the line.

Choose a trading style that also fits your personality. Regardless of whether you are a short-term or long-term trader, and rely more on technical or fundamental analysis, you must impose a maximum loss limit on a daily, weekly, or monthly basis. This will save you from large losses in a short period of time and give you more time in the game.

The optimal number of trades depends on the time you have, your trading style, the risk you are willing to take, and your experience. Remember that you should always look for quality setups, and if there are none, show discipline and simply don't trade. The market will continue to give you opportunities, and your task is to make the most of only the best ones and be able to easily skip the rest.

If you don't have a strategy yet or don't even know which style is best for you, then check out our free course for beginner traders.