how to stay profitable in forex trading

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How to stay Profitable Consistently in Forex Trading ? Is it a Myth or a Reality?


Most of the traders work hard to find out how to consistently remain profitable in the forex market. In this article, we will try to find out whether it is possible to find out a regular profit. Besides that, we will use some tips that may help traders to achieve profits in the markets for the long term.   For the very first time, a trader has to adjust his trading strategy to fit his personality, schedule of their trading and risk-taking attitude. You should backtest every strategy and its effectiveness should be measured. But at the same time, you must be conscious that historical data might not be an accurate representation of future performance. It merely gives an idea that does not guarantee anything.  


Some people might be obsessed with profits, which might ultimately lead to failure . Cause: 01 The turnover in this group of traders is very high and they might lose their capital. Cause: 02 Instead of focusing on making a profit try on learning. Cause: 03 You have to invest your time on how the market works and learn how the industry functions. Cause: 04 When you crave for Profits to much it causes trouble


Cause 1: Some people might be obsessed with profits, which might ultimately lead to failure. Looking for quick money is one of the obstacles in learning how to be consistently in profit in forex. To avoid this, the best way is to forget any unrealistic goals and targets. The obsession of making lots amount of money in a few swift trades is very unusual. Trading too carelessly and over-confidently might cause you to lose money. Intraday traders who follow scalping are exposed to this way of thinking.


The turnover in this group of traders is very high and they might lose their capital. According to many experts to make money first you have to forget making money. When you set your goal too high, it creates a lots of pressure on you and it creates the biggest mistakes for the traders.      Cause 2:


Instead of focusing on making a profit try on learning. Try to learn different trading strategies and research which tools are available for making profit. Try to see which techniques seem to have sound logic and how they can be used on your own strategy.   Cause 3:


Besides all these things you have to invest your time on how the market works and learn how the industry functions. The main purpose of this article is to let you know that never stop learning. Because there are always new things coming in the market (Strategies and Techniques). The market is always changing. If you always keep yourself updated with new things, it will put you in a vantage position in the trading business.      Cause 4:


Don’t overtrade: Overtrading might decrease your trade and it is caused by a faulty mindset as mentioned above. Overtrading is a result of finding opportunities in the market. Opportunity does not prevail in the market always but traders always want them to go there. Sometime trader may not realize it but that is a point where the deception comes to play. Normally we can describe it in two way:  


Trading too often Trading too much


Trading too often According to  Warren Buffett , you need discipline when investing:   "You have to wait until you see the fat pitch to swing at, because investing is a no called strike game. In baseball, you have to swing at pitches you don't necessarily like. In business you don't have to swing at anything. You can just sit there… and if you don't like the prices you don't have to swing day after day, after day, after day, and there are no called strikes. You can simply wait for that one time in a month when you like the price, when you really know what you are doing, and then you swing. And you only need a couple of swings.“ Warren Buffett was referring to long-term investment. And if you apply the same principle in your trading, it will help you a lot. What he tried to say is, you do not need to make many trades, just making the right one is enough.


Trading too much On the other side overtrading means trading too much. In Forex, the broker offers significant leverage on their account. The purpose is to prevent traders from gaining a significant amount of profit from a small investment. Which enables brokers to sell their service. In practical life, you will find beginner traders with a high amount of leverage to maximize profits but the problem is, they end up making their actual loss. The higher the volumes, the more pips it indicates, It is the engine of profit and loss. But it is the trader’s choice if he wants to trade a large amount which will be susceptible to margin calls.   


Lessons that we need to keep in mind: Ensure that you understand the risk management before you start your forex business. Always try to avoid overtrading and always test new trading systems in your business. 


Nobody Makes Profits All the Time A million-dollar question is how does a Forex trader achieve profits consistently? Truth is, it can't be done. Closing every trade in profit is a myth.    If we want to know how to consistently remain in Forex profit, let’s face it, there is no universal solution. If you have difficulty in taking the loss, you may also struggle with forex. Sometimes successful traders with long term experience face loss around 30% in their trade


Always be organized A lot of things have been discussed about trading discipline. Everything starts with your trading routine. You should develop a trading plan to cover your activity. Sometimes a trader develops a negative trading habit. They overtrade once, get lucky, they carry on and end up wiping out their account.   


Conclusion & Recommendations Try to let go of your expectations. Always have a  risk management  plan. Choose a trading strategy that you like. Make sure it has strict conditions for entering and exiting trades. Always try to back-test until you trust it.    Do not overtrade under any circumstances. Try to maintain a diary to analyze your trade. Try to forecast your long-term progress instead of short-term success or failure. Always remember short-term is less-important.  What happens on average and in the long term that should be our focus. One last tip not to slump when trading. Research says that people who slouch are less advanced at solving logical problems than those who sit straight to their trading plan.


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