Earning money consistently from Forex Trading isn't a myth. Probably you done it wrong all time around. Instead, try this neat tips and see how much better you can progress.

Okay, you have heard from some people that Forex trading can make you rich overnight. However, by contrast, up to 90% of traders lose their money while Forex trading.

How to earn consistent profits in forex trading

Well, two simple factors contribute to those disparities; your positions versus others' positions. If the correct position is all that it takes, how hard can it be to do Forex trading successfully?

 

Forex Trading is a Risky Business, Treat with Care

Yes, one may trade foreign exchange successfully if they understood just how much risk (potential loss) one can bear every time a position is open and running. Upon that premise, you need to develop market awareness and a well-developed system to do Forex trading successfully without bleeding out too much money. To do that, the following hints should be taken into consideration each time you open or exit a Forex trading position:

 

Manage Your Risk

As Warren Buffet said, there are two rules in trading:

  1. Never lose money.
  2. Remember Rule 1.

What he said is true for all serious traders wishing to make consistent gains from Forex trading. Risk management is a proactive approach that involves implementing rules and strategies to minimize loss. Therefore, having a comprehensive risk management plan is essential. You can start by applying these strategies to your trades:

  • Stop Loss: Implementing a stop-loss order is important to prevent losses that may arise. This strategy allows traders to set a predetermined exit point based on their preferences. By utilizing a stop-loss order, traders can protect themselves from downtrends and maintain control over potential losses. Don't wait too long to cut loss a floating position that is clearly losing. The same thing applies to profit-taking. If you're way too greedy, prepare to get whiplashed by price reversals. Gauge your realistic profit gain by TP (Take Profit) or limit order.
  • Following trading plan: Successful traders consistently create trading plan since it is essential to enhance focus on trading objectives and reduces the need for subjective judgments. A well-structured plan fosters discipline, promotes consistent trading, helps manage emotions, and can contribute to the enhancement of trading strategies. 
  • Money management: Money management's primary objective is to maximize the probability of keeping your money safe, particularly during unfavorable market conditions. 
  • Risk/reward ratio: The risk/reward ratio is a valuable tool to effectively manage risk exposure by allowing traders to assess the potential loss versus the potential gain in a trade. By considering the risk/reward ratio, traders can determine if a trade is worth pursuing. 

And also, take cautionary measures when you plan to use leverage. Have you heard of infinite leverage offered by some Forex brokers? Sounds fantastic right? You can either profit huge or bleed out your total deposit just as fast (in a losing position) if you took high leverage beyond your margin capacity.

 

Other Tips That Can Help You

After performing the steps above, it's also a good idea to do the following to strengthen your profits:

 

Personalize Your Trades

Each individual trader will react differently to specific market conditions on a specific currency pair. You don't need to stick yourself to rules or trading rites imposed by others. Chances are, it won't work as both parties intend it to. From that point, you can personalize all the fine details to suit your Forex trading style. Know your pairs. Set your time frame. Pick your tools of the trade.

 

Stay Disciplined and Be Patient

Do not rush any signal or merely overtrade to compensate for your losses. Trade like a military-trained sniper. Take aim only on the best Forex trading signal, and fire off your trade executions when all the rules set beforehand clicked. Setting aside impulsive emotions from your trades can significantly improve not only your profit but also save your capital from unnecessary losses.

 

Be Realistic

In other words, if you expect a starting fund at USD 100 to develop into USD 2,500 overnight, you'll need a wizardry advisor, not a Forex trading mentor. Realistically you'll need to allocate months of good Forex trading (consistent profits) to get to that point.

 

Trade with Fair Forex Broker

Forex Trading with a trusted Forex Broker is a key factor in securing your profit. Fair Forex Broker will transmit your requested market order without any intervention, which means no re-quote or fake slippage. In turn, this fair Forex trading condition will make each pip (profit) gain more transparent and consistent.

 

Conclusion

Today, almost everyone with enough capital can access the foreign exchange market. However, like most online trading businesses, one needs to assert some form of control to reduce its inherent risk. Half of that risk can actually be anticipated by learning how to trade in the right order. Nowadays, there are many resources that provide such information for traders all around the world. Not only in English, but they can also access trading education materials in multiple languages like Bahasa Indonesia, Malaysian, Chinese, Arabic, etc.

Warren Buffet or George Soros don't get rich by making a series of lucky shots. It's because they manage their losses according to their capital/initial deposit exposure. They don't take super high-risk leverage only to get short-term profit.

Take this note home, Forex trading requires you not only to invest a handsome amount of money but also time. The actual practice of making consistent profit in Forex trading requires expertise that can only be garnered through patient learning, failed steps, and meticulous evaluations to avoid making the same mistakes, from time to time.