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Every trader wants to earn consistent profits. The question is, how to trade with consistent profits? This question makes sense. due to the volatility of trading instruments Especially forex is quite reasonable.
It should be understood that earning consistent profits does not mean facing the market without volatility. when trading forex You will definitely get big profit, low profit, break even point (profit equals loss), low loss and big loss for sure. According to Minds Trading Institute, all you have to do is avoid big losses.
So how? Check out his comments below:
1. Create a trading plan
The first step to making consistent profits in forex trading is to create a trading plan or document where your trading strategy is plotted. In this document you can observe several things such as:
- Profit Target Make sure you set realistic profit goals.
- maximum loss Therefore, Stop Loss must be installed. Make sure you calculate your potential losses well.
- the strategy you use Since any technical indicators to the leverage and funds you use.
- The instrument you buy and the time frame
To set realistic maximum profit and loss goals You can evaluate the trading strategies you use against past trading data through backtesting mechanisms. or learn from mistakes by using a forward testing mechanism.
The trading plan can be used as a benchmark in trading decisions. It is also included as a reference for evaluating strategies in the next trading session. To create this document You can use a spreadsheet application or Word.
2. Choose a reliable broker
The second tip is to choose a reliable broker. reliable forex broker Be a brokerage firm with an official license from the relevant institution, for example if conducting business in Indonesia. Brokerage firms must have a license from BAPPEBTI.
In addition to the license A company’s performance also needs to be proven. Today, you can find reviews of brokerage firms’ performance on various platforms. on the internet This is important because there are countless people. cheated by brokerage firm on behalf of forex trading
If you trade forex using copy trading mechanisms Remember to copy the trading strategies of trusted master traders. check his background How has his trading performance been over the past few years? and what other traders say about him
3. Practical learning
follow Stanford.eduPragmatism is a philosophy that emphasizes that an event It is said to be true only if it is scientifically proven and or useful in social life. Why is this attitude important in trading for consistent profits in Forex trading?
The answer is because this attitude will make you cautious in your decisions. in forex trading A pragmatic attitude can be applied by choosing a broker, master trader or even a trading guru after careful review and verification of their trading strategies.
Additionally, this attitude can be applied by avoiding trades that seem “too good to be true.” As a result, you can avoid traps. ponzi project BAPPEBTI and OJK have banned these two mechanisms from being used in the capital markets, financial markets and commodities markets in Indonesia. Still, it tends to be used to attract new traders.
4. Discipline
Do you want consistent profits? Therefore, you need to be consistent or disciplined with all the trading strategies you make. Many traders experience big losses because they hold instruments that are priced lower than the used stop loss or buy the instruments without careful planning.
This subjective attitude will lead you to inconsistent profits. Remember that the price of each instrument will go up and down depending on the market sentiment. It’s just a matter of responding to these price fluctuations.
5. Determine the psychology of trading.
One of the factors that prevent traders from being disciplined and ultimately unable to earn consistent profits is the psychological factor. You have to be good at managing the 3 M’s: Mind, Money and Method.
Here are some tips to be able to manage psychological conditions when trading:
- Choose the tools and trading styles that suit your risk profile and skill level. If you are a novice forex trader and still learning about this tool. You should use the Swing Trade trading style first because this trading style gives beginner traders trading time as much as that without interrupting the daily schedule.
- set normal trading hours Make sure you set regular trading times. The goal is so that the trading schedule does not interfere with daily activities. This is because forex trading is open 24 hours a day in 5 days and to give you more control over your trading hours.
You can divide these trading hours into three periods: the analysis period. This way, you can focus on analyzing the market without fear of losing previously opened positions. - Make sure that during trading hours You are devoid of certain emotional states, such as sleepy, angry, hasty, or very happy. This emotional state will encourage you to make unreasonable trading decisions. And in the end, it can drive you to big losses.
6. Keep learning
Successful Forex traders who are consistently profitable are traders who do not tire of continuous learning. Whether learning new trading techniques Evaluating old trading strategies or even learning from mistakes
Because getting consistent profits in a highly volatile market like forex is definitely not instantaneous. in fact It may be that if the profit from trading is immediate. You are into a Ponzi scheme or a money game and not a real forex trading.
It is said that consistency is 1000 times better than miracles. consistency in something Be it consistent profitability or implementing a trading strategy is difficult to acquire and needs to be built slowly. However, anyone who is consistent in the good in his life will benefit. definitely enormous
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