We all know that trading is one of the hardest profession in today’s world. Having access to the high leverage trading account doesn’t mean that you will be able to make profit consistently. All the pro traders in the United Kingdom have spent many years in learning the art of trading. To be honest, the majority of the traders knows very well how to execute profitable trades but they don’t know how to book their profit in the dynamics of the Forex market. Making money in the online trading industry is really easy but keeping them safe is hard. Being a human being it’s very obvious that you will start taking big lot size trade to increase your profit factor. The moment you stop trading with calculative risk is the very moment you start losing money. In today’s article, we will discuss some key rules which will help you to make consistent profit in the Forex market.
Learn to stay on the sideline
All the new traders are very much active in their trading profession. They are always looking for trading opportunity and placing trades without doing the perfect market analysis. In order to become a profitable trader, you need to learn the art of doing nothing. The majority of the successful traders do nothing 99% of the time. You don’t have to execute too many trades to make a living out of trading. If you can place the perfect trade with proper money management, a single trade is enough to ensure your whole month earning. Some retail traders say that their trading system is capable of generating high-quality trading signals more frequently. But this is not entirely true. They are having more trading opportunity since they are trading this market in the lower time frame. If you start trading on the higher time frame, you will hardly get a single quality trade during the day.
Close your trade partially
Learning the art of trade management is very crucial to your success. You might trade the most active currency pairs and secure decent profit in every single month yet you should learn how to close your trade partially. Closing the trades partially allows you to book a certain portion of your trading profit and reduce the risk exposure to a great extent. If possible, use the trailing stop loss features to maximize your profit. However, being new to this industry you should never close your trade partially. Instead of this, you can move your stop loss to the breakeven point once the market moves a decent portion your favor. But never place your stops to the breakeven level unless the market has breached a critical support or resistance level.
Always withdraw a small portion of your trading profit
We all trade this market to make our life better. However, some retail traders often forget that they need to withdraw some profit on a regular basis. But this doesn’t mean that in every single day you will make a withdrawal request. Use a strict routine to make a regular withdrawal from your trading profit. For instance, the pro traders withdraw profit once in a month. After the withdrawal request is processed, the new retail traders often start trading with big lot size to recover the withdrawal amount. But trading is just like running a traditional business. You need to follow a strategy to make profit consistently. If you look for a short cut, you are going to lose money.
As a currency trader, you should follow the above three rules very strictly. If you are not sure about your trading system, seek help from the professional traders. Without having a proper knowledge in the investment world it will be impossible for you to make money on regular basis. Always trade this market with a high level of confidence and never trade with the money which you can’t afford to lose.