How to make consistent profit in forex trading

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The majority of retail traders struggle to find out how to be consistently profitable in Forex. Let's break down the steps you need to take in order to help you profit. First of all, a trader has to figure out how to be profitable, which usually comes down to creating or adjusting their trading strategies to fit the trader's personality, trading schedule, profit and risk appetites.

How to Make Consistent Profit In Trading Forex : Forex Indicators | Best Forex Signals

This isn't particularly difficult since almost every popular strategy you can find online is, to some extent, profitable in the long run.

That being said, any strategy should be historically back tested before use and its average effectiveness should be measured. You must also be aware that historic performance is not an accurate representation of future performance and therefore does not guarantee future success. Secondly, a trader must develop a certain mentality to be able to follow his strategy consistently. This second part will be the prevailing topic of this article, because failing to understand it is the very reason so many quit Forex after losing their funds.

The main reason why people begin trading Forex is because of the money — that's not a secret. The problem is that people can obsess over profits, which in turn can be their downfall. One of the main obstacles in learning how to be consistently profitable in Forex trading is chasing the money.

There is no doubt that Forex trading can be profitable , but you have to be patient and realistic. A good place to start is to forget any unrealistic goals and targets. The notion of making large amounts of money off a few swift trades is extremely unlikely. Trading too flippantly and over-confidently can be what causes you to lose your initial investment. Intraday novice traders who follow short-term price action are exposed to this way of thinking.

The turnover in this group of traders is high and they lose their capital in a matter of a few months. Basically, many veteran traders live with the sentiment of "to make money you need to forget about making money". By setting the money goal high, a trader places himself under a lot of emotional pressure, which results in one of the biggest mistakes possible, i.

As an alternative to focusing on the money, try focusing on learning trading strategies and research what trading tools are available to you.

See which techniques seem to have sound logic and think how they can be used in a strategy. You'd be amazed at how much knowing this information can help you trade consistently. And this is the biggest takeaway — never stop learning. The markets are constantly changing and if you want consistency, you need to be able to keep up and adapt to these changes. Overtrading is another word for curve bending or market chasing and it's caused by a faulty mindset as described above.

Overtrading is a result of seeing opportunities on the market not because they are actually there but because a trader wants them to be there. Traders may or may not realise this and that is where the deception comes into play. There are two kinds of overtrading — trading too often and trading too much.

Both are known to be the very opposite of how to make consistent profits in Forex trading. In his speech titled How to stay out of deb t , Warren Buffett said you need discipline when investing:. If you overlay that same principle to Forex trading, it is still sound.

The bottom line is, the trader doesn't need to make a lot of trades, just making the right ones is enough. By the time you come to trading a live account, you should have a strategy with preset specific conditions for entering trades. The other part of overtrading is trading too much. A lot of people say that frivolous leveraging is to blame.

Forex brokers offer significant leverage on their trading accounts. In theory, this was originally to give traders the chance to make reasonable profits from small investments, thus enabling more people to see value in trading and use it as a service that brokers provide.

In practice, however, taking high leverage is still common for beginner traders who are tempted by maximising their potential profits, but instead maximise their actual loss. High leverage is not intrinsically a bad thing. It does allow trade in larger trading volumes, which results in a trader having less free margin to play with in case of a drawdown.

Higher volumes mean more pip value — the engine of profit and loss. However, it is the trader's choice to trade an unreasonably high volume that makes an account more susceptible to margin calls. As for the leverage itself — if anything, it's there to help a trader who already understands how leverage works and respects it.

The lesson here is to avoid overtrading and to always test new trading systems and strategies in a risk free trading environment. How does a Forex trader keep on winning consistently? Truth be told, it has nothing to do with winning all the time, in every trade. One could argue against using the word win altogether, as it might mislead you into believing that luck is a factor in Forex and CFD trading, or that trading bears any resemblance to gambling whatsoever. Gambling has no place in sustainable, successful Forex trading.

Closing every trade in profit is simply a trading urban myth. If we are talking about how to be consistently profitable in Forex in the long term, some professional intraday traders may be consistently profitable on a daily basis but not even they can show a trading report that that doesn't include a single losing trade. If you are a sore loser, you may struggle with Forex. The trick is that those that are profitable yield enough to cover the losses and make profit. Keep in mind that this is common for long-term, trend-following traders.

It takes a lot of mental fortitude to admit miscalculations in your decision making if your strategy allows it and to close a losing trade early with a small loss. Conversely, it takes about as much fortitude to trust yourself and not close a winning trade too early. You need to be patient and ride the trend until it's done. A lot has been said about trading discipline, but very little about organisation. Order leads to consistency and consistency is what this article is about.

Everything starts with your trading routine. You need a strict plan that will cover most of your trading activity and will help you reduce the random factor to an absolute minimum. A lot of beginner traders develop negative trading habits. For example, they overtrade once, get lucky, carry on and end up wiping out their account.

Once such a trader has won once, they have reinforced a negative trading habit that proves nearly impossible to break.

How can that person now trade carefully, knowing just how much could have been made with luck? Traders think they are lucky until they aren't. Reinforcing proper trading habits helps you answer how to be consistently profitable in Forex trading.

Repeat this exercise and you may inevitably end up in a relatively small group of financial traders that made it. Remember, it matters what happens on average and in the long run. One last thing — do not slouch when trading. Research shows that people who slouch are less advanced at solving logical problems than those who sit straight.

Trading foreign exchange or contracts for differences on margin carries a high level of risk, and may not be suitable for all investors. There is a possibility that you may sustain a loss equal to or greater than your entire investment.

7 Super Simple Steps To Consistent Forex Profits | Learn Forex Trading With VintagEducation | Forex Trading Strategies

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