Forex: 4 Effective Rules to Make a Consistent Profit
There are many things you need to learn as a currency trader. Peoples always think trading is one of the easiest ways to make a profit. But if you dig deep, you will understand thousands of traders in Hong Kong are losing money.
Becoming a successful trader is more like developing your trading skills. Unless you learn to trade this market with managed risk, you are going to lose most of the trades. Things might be hard at the initial stage but once you learn to follow some basic guidelines, you can succeed at trading. Never think trading is all about taking too much risk. It’s more like dealing with quality trades in the most effective way. Let’s learn four effective rules which can make you a profitable trader.
Learn harmonic pattern
You must learn about the harmonic pattern trading strategy before you start trading as your full-time profession. The majority of the retail traders don’t even know what harmonic pattern trading strategy is. This pattern trading strategy is mostly used to trade the major reversal.
The professional traders always prefer to learn harmonic pattern trading strategy as it helps them to avoid losing money in the major reversal. Though this is a very easy task the naïve traders always find an easy way to make complicated.
Learn to use the Fibonacci
To make a consistent profit in the Forex market, you must learn to trade with the major trend. The trading strategy is one of the most efficient ways to make a consistent profit. Once you learn to trade with the major trend, you will understand why people prefer the trend trading method. But how do we learn to trade the major trend?
To trade with the major trend, you must learn to trade this market with the Fibonacci retracement tools. Try to execute the orders at the 50% and 61.8% retracement level. Once you get skilled with the system, you will be able to make a consistent profit.
Trade without any emoting
Those who are trading the market with emotions are losing most of the trades. If you intend to make some serious changes in your life, you must learn to control emotions. Controlling your emotions is one of the most efficient ways to make a profit. Those who are emotional always get frustrated after losing a few trades.
You need to have the ability to control the emotions and only then you will be able to make a consistent profit. Never think you know the perfect way to reduce the risk in each trade. You are bound to lose money. But if you can trade with discipline, you won’t have to blow up the trading account. Try to maintain a trading routine since it is one of the most efficient ways to protect your trading capital. Never think you can change your life by taking aggressive steps. Stick to the conservative trading method and you will start making some serious profit.
Trade the major news
People always think trading the major news is one of the key reasons for losing money in Forex. But news trading is one of the most effective methods that can help you to earn more money.
Many traders often consider it as the best way to reduce the risk exposure in trading. Before you start to trade the major news, you must learn to analyze the major news. News trading can make you very risk as it helps you to make a profit in the volatile market.
However, the naïve trader should learn the art of news trading by using the demo account. Since they get skilled in news trading, they can trade the market to make some serious profit. The pro traders always think about the smart approach to make a profit. Think like the pro traders so that you don’t have a struggle in the trading business.
This article has been written by Chandra Mehta.
Chandra is a seasoned banker with 35+ years of experience in banking and financial services industry. He’s a retired banker and has served as Chief Manager and Assistant Vice President in State Bank of India/or its subsidiaries. He has authored many articles on this site (allonmoney.com).