Are you losing patience because you are not getting success consistently? You may have gone through many pieces of advice, books, and courses, and still, you are not satisfied with your results. Keep doing the business because now you will indeed receive some solutions to be a consistently profitable trader.
All the tools are in your hand. It is just a matter of time to re-arrange them and create a great collaboration of your strategies. Follow these guidelines to be a consistently profitable trader.
Number of trades
The number of your performing trades impacts a lot in your expected results. If you apply a large number of actions during a time, it will be favorable for you. Outcomes are pretty slow in the short period, but your desired results can occur in the extended period.
- Scalping: Trade the lower time frame daily and you should be able to make a decent profit.
- Day trading: Consider 4-6 actions per day, and you will get your expected price.
- Swing/position trading: Take actions around 10-15 times a month and enjoy the upcoming success for years.
In a word, the more actions you take during a short time, the more advantages you get in Forex. But without the benefit, if you intend to manage many trades at the time, you might blow up the account. Do not target unrealistic profit margins.
Perfect selection of trading types
The difference among all the categories is the timeframe. Think before you join the world’s largest market. If you have a full time job, you should not pick day trading. Grab the most suitable category according to your personality. It will take you to the next level. But if you are investing your money in the stock market, be sure you know the exact stocks to trade. Unless you know your preferred trading instrument, it will be really hard to make a regular profit.
Be a master planner of your work.
To be a master planner, you have to set several strategies. To make things easier, let’s highlight the key factors.
- Choose a suitable category for you
- Be calculative about timeframes
- Make decisions on your own
- Market research with technical analysis
- Be patient
- Large numbers of trading
- Start with proper knowledge and research
- Have a perfect calculation of stop losses and target profit
Apart from the heavy leverage
Leverage can be an excellent opportunity for a beginner, but over-tempting can be a massive loss for someone. It may be a disaster to recover the losses. So, be careful of leverage as it can magnify your losses. It would be better if you ignore to trade with more than 1:10 leverage from starting your trading career.
For any business, research is a mandatory term. Forex is not exceptional. Currency rate, political environment, economic situation, news release, and interest rate are crucial key factors of fundamental research. So, learn to analyze the major news release by using a strategic plan. Never trade the market without having strong analytical skills.
A successful Forex trader always is an expert in technical analysis. So, try to learn the ins and outs of technical analysis by using the demo account. Start analyzing the data in the higher timeframe. Once you become comfortable, you can switch to the lower timeframe data.
Keeping risk-reward ratio to 1:2 or more
If an investor plans to gain 100 pips up, he should select the stop to lose to 50 pips. This is standard protocol. Many highly experienced Forex traders have agreed to this. Avoid setting up the stop loss and target profit while you are driven by emotion.
A consistently successful Forex trader does not compromise on these qualities and guidelines in order to hold a strong position. The actions of a trader greatly depend on his personality. But no matter how well you trade the market, try to trade with a high risk to reward ratio.