Generating consistent profit in forex is the dream of many traders. But is it possible? The answer is yes by following these strategies.

Forex trading can be a cash field for traders who know how. Many want to quit their current job to be able to focus on making money through trading (Trading for Living). However, before deciding on this, ask yourself whether you have a good forex strategy to generate consistent profits.

According to The Balance, effective forex strategies are available for generating a profit of 10% per month. For instance, with a trading capital of $1,000, you could earn a profit of $100. This method might be difficult for novice traders, and it will take at least six months to a year to successfully generate 10% profit through this strategy. How to do it?

## 4 Strategy To Get 10% Profit Per Month

There are two ways to earn a 10% profit from day trading. The first is to **invest a large amount of capital with a relatively small profit percentage**. Why? Even though the percentage is small, the profit you get per month is "decent" enough because you are a benefit in terms of capital resilience.

The second method involves **using a small amount of capital and targeting a profit percentage that aligns with your capital resilience**. If your capital is small, more advanced skills are needed so that the capital can be doubled from before. Therefore, before you fully trade for a living, it's best to understand the following four things.

### 1. Be Realistic

Making a living from forex trading is the dream of every trader. Who doesn't want to get money just by sitting in front of the computer? However, you need to know that the reality of forex trading is not as perfect. Based on the results of The Balance survey, **only 4.5% of people successfully practice Trading for a Living**.

These people do not get the results easily. They spend 30-40 hours per week researching, practicing, and analyzing to get the best trading formula. So why do so few succeed?

Many traders aspire to make a living from forex trading but are mired in the abyss of defeat. Not a few lost some, even all, of the money they deposited because they experienced losses until the Margin Call. The main reason for the failure of such trades is the trader's factors. They are too preoccupied with the happy ending scenario, so they fail to understand the reality of forex trading.

The harsh trading world also means you can't rely on anyone but yourself. The forex market is not a place to make friends and joke. If you are not serious enough, you will be eliminated automatically. So make sure you know whether you want to be a full-time trader of a fun-time trader.

### 2. Understand What Makes Your Trading Successful

There are four determining points for trading success. You cannot leave any of these four things if you want a consistent 10% monthly profit.

First, **the capital that you are willing to risk in trading**. That is, you have to set an amount of capital that doesn't matter if you lose it. To achieve a profit of 10% per month, the capital that can be risked is a maximum of 1 percent. For example, if the capital used is 1,000 Dollars, then the amount risked is 10 Dollars per entry.

Risking more than 1% increases the potential for losses. As a result, it is important to set a stop loss to ensure you do not lose more than 1 percent.

Second, **understand the risk/reward ratio.** To consistently earn 10 percent profit, you must determine the ratio of the number of trades risked to the profit earned. For example, your risk/reward ratio is 1:1.5. Your winning percentage should always be 1.5 times greater than your risk of losing. To apply this strategy, you need to determine a larger take profit than your stop loss.

Third, determine the win trading ratio. The win ratio is in sync with the risk/reward ratio. This point will help you to determine your winning percentage. For example, you apply a risk/reward ratio of 1:1.5 and open 100 positions. Sometime later, you win at 50 positions and lose at 50 positions. You have scored a 50 percent win and are already profitable. The calculation formula is as follows:

(Win Rate x Reward Ratio) - (Loss Rate x Risk Ratio)

(50% x 1.5%) - (50% x 1%)

75% - 50% = 25 %

With a win rate of 50 percent of the risk/reward ratio of 1:1.5, you've got a total profit of 25%. It's different if you win 40 times and lose 60 times:

(40% x 1.5%) - (60% - 1%)

60% - 60% = 0%

That is, break even. You don't win, but you don't lose, either.

From the calculations above, you can conclude that to get a consistent 10 percent profit, you need to maintain a win ratio above 50 percent. You must also maintain the risk/reward ratio at 1:1.5 or more.

Fourth, the number of positions opened. To get consistent profits, you must not be so greedy that you open many positions. The more positions opened, the greater the risk. To enter only once a day (22 entries a month because the forex market only operates Monday-Friday), assuming you apply a risk/reward ratio of 1:1.5 and a win ratio of 50 percent, the total that can be generated is as follows:

11 x 1.5% - (11 x 1%) = 5.5%

If you make two entries per day, multiply 5.5 by 2. Utilizing this strategy can significantly increase your chances of achieving a 10% profit per month and potentially even more.

### 3. Open Two Positions Per Day

Based on the calculations above, you can conclude that the ideal number of entries to achieve a profit of 10% per month is a maximum of two times a day. Assume you apply a risk/reward ratio of 1:1.5 and a win ratio of 50% and make two entries. So, the total that can be generated is 11%.

**Before trading on the market, using a demo account to test the strategy is a great idea**. If, in this way, you manage to profit 10% consistently, then you can proceed to a real account.

However, remember that there is no guarantee that a glorious win on a demo account will also occur on a real account. Therefore, start with small funds first when trading on a real account.

### 4. Choosing the Right Forex Pair

There are three types of forex pairs, major pairs, cross pairs, and exotic pairs. You can choose the pair that best suits you. You must already know that the best forex pair is relative. Forex pairs will bring brilliant results if they are in accordance with the trading style used. You don't need to worry because t**his strategy can be applied to any forex pair if you remain disciplined with money management**.

## Conclusions

Although it is possible to make a living through forex trading, it requires additional time and effort to succeed. This is evidenced by the fact that only 4.5 percent of people worldwide have been able to do so. You can achieve a consistent monthly profit of 10 percent by utilizing the abovementioned four strategies.

*In the end, generating profit is the main goal of every trader. But traders should remember that protecting profit is as important as getting it. There are many ways to do this, and one of them is through Trailing Stops.*