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Crucial Points To Maintain Consistent Profits in Forex Trading

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With a proper strategy and trading plan, there’s a huge possibility that a trader can gain a decent payout a couple of times. But if you aim to have a regular income, you might consider forming a Forex trading strategy that pays out consistently. But this is easier said than done. Chris Capre, a professional Forex trader said that 33% of new traders tend to profit in a matter of three months. But traders who consistently gain profit are only about 7.7%. With the given percentage, this means that 92% of traders will not be able to achieve this precious goal.

But you shouldn’t lose hope. Even professional traders go through a lot of hard work and patience to be able to achieve what they have right now. There are certain things that you can do to be able to improve your trading experience and your chances of acquiring consistent wins.


Choosing the Right Trading Strategy and Style

For you to build the confidence that you need in trading, you choose the most appropriate trading style and strategy perfect for the asset that you’ll be trading. This will help you build up the confidence that you need in order to perform well in the market. You can test your trading style and strategy using a demo account where it’s risk-free.

Setting An Appropriate Risk/Reward Ratio

When you set a risk/reward ratio, you must see to it that the target profit is realistic. Overleveraging must also be avoided and only invest about 5% of their overall trading capital. It’s also helpful to keep a journal where it easier to keep track of your previous performance. You can’t just check your achievements but your mistakes as well. From there, you will learn what to do and not do in FX trading.

Making Consistent Profits

You must be asking yourself, is it really possible to achieve consistent profits in the FX market? Yes, it is totally possible but hard to achieve. You can try these 7 ways of improving your trades and attain consistent profits in FX trading.

Choose a trading strategy and stick to it. There are different strategies in trading, you can choose long-term trading, short-term trading or scalping, swing trading, and day trading.

Set a risk/reward ratio of 1:2 and up. You are not guaranteed to win at least 50% on each trade. So, to address this concern, you must maintain a risk/reward ratio of 1:2 and higher.

Set up realistic goals. Do not fool yourself. If there’s anyone who’ll suffer when you set up unachievable goals, it’s you and you alone.

Don’t over-leverage. Leverage is a double-edged sword. Don’t be hasty with your decisions especially if it concerns leveraging.

Invest only 5% of your trading capital on each trade. As much as possible, limit your risk by investing not more than 5% of your trading capital in a single trade.

Keep a trading journal. Keeping a trading journal lets you track your previous wins and losses.

Conduct fundamental research regularly. Do not stop learning. Stay on top of the newest economic trends.

Mark Rodgers

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.