How to Last Long and Consistent Profit in Trading
Although it is easy to do, in fact it is not easy for a forex trader to achieve real success. This is inseparable from the challenge of obtaining consistent profits in forex. Consistency is the most important key in achieving trading success. Consistently minimizing losses and earning profits in forex are two things that confirm a trader's success. Here's how to last long and profit consistently in trading:
Have a Trading System
Before entering the world of trading or before entering using a real account in particular, prepare a trading system first. A trading system is a combination of various tools or parameters in technical analysis to help traders make trading decisions. The trading system is made to be a trader's guidelines and limits in transactions. This requires a commitment to run it because it will have a positive impact, especially in achieving profit. Everyone has a different trading system. Even though they have different trading systems, traders must have a concept that they must use as a reference. The most important thing in a trading system is that traders must be consistent with the system they already have, including using the trader's chart period. After having a system setting that is in accordance with the character and has been tested, traders should not feel nervous as long as they are still full of the rules.
Regulating Capital Management and Trading Risk
There is a wrong assumption among novice traders if the capital is bigger then they can get bigger profits too. In fact, the reality is that traders who deposit lower trading capital can get bigger profits. This is due to the management of capital and risk.
Example,
Person A and Person B are both trading using 500 US Dollars of capital. Person A uses it to trade 0.2 lots per transaction. He trades without a plan, so as long as he makes a profit of 1-2 pips, he will immediately close, even though when his trading position loses hundreds of pips, he is left alone until finally all his capital is exhausted because he is hit by a Margin Call.
On the other hand, Person B has a good plan. He started trading with a volume of 0.02 lots per trade, with a target profit of 20 pips and a stop loss of 10 pips. Thus, even though his analysis is not 100 percent correct, he can still make a profit. Even if there is a loss position, the loss will not reach the Margin Call, because a 10 pips Stop Loss has been set. After making a profit of 50 US Dollars, he increased the trading volume to 0.05 lots per trade with the target and stop loss remaining the same. If he loses up to 25 US Dollars, he will reduce the trading volume to 0.02 lots per transaction again. And so on.
how to trade forex the majority of beginner forex traders tend to be careless and without planning. While the B method is an example of an experienced forex trader who already understands the importance of capital management and trading planning.
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