Step and Variety of Consistent Profit Forex Trading Techniques You Can Do
Step and Variety of Consistent Profit Forex Trading Techniques You Can Do - Once or twice making a profit can cause euphoria in traders who trade forex.
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Generating profits consistently over a certain period of time can empower traders because apart from being able to make the forex trading platform reliable it also increases trader confidence in making money.
Therefore, getting consistent profits through forex trading is a trader's dream. However, this is very difficult to achieve if you don't know the stages and various consistent profit forex trading techniques that you can try.
To carry out the right consistent profit forex trading technique, the first thing you have to do is map the risk profile and capital that you have. Many novice traders go wrong in the first step, which should be the most important opening step in any forex trade.
The mistakes of novice traders, for example, trading without planning. As long as there is sufficient capital to buy a minimum number of lots, then the profit is only 1-2 pips, just withdraw funds immediately. This forex trading technique without planning is dangerous because it is vulnerable to margin calls, which causes all of a trader's capital to run out in a short time.
Therefore, you have to make a plan on the consistent profit forex trading technique that you want to run. The size of the risk vs reward ratio which is measured based on the stop loss number and the target take profit is one of the planning parameters that you have to do.
Besides that, there are still other areas that we have to map out before starting trading. These other areas are for example the size of the initial capital which is closely related to the minimum lot per transaction suggested by the trading platform or software and leverage, which ideally ranges from 1:100 to 1:200.
From these parameters, then you will adjust to the appropriate pair and time. Many advise novice traders to master common pairs and times, such as USD/JPY, EUR/USD, or AUD/USD, or for the time there are Asian sessions, European sessions, and so on.
However, determining the appropriate pair and time will not provide consistent profit results if it is not supported by the right variety of consistent profit forex trading techniques. In this case, you know that there are technical and fundamental techniques or methods that traders can apply.
Most traders, especially novice traders who are new to the world of trading and finance, will choose to do the technical method.
Usually, those who are fixated in a technical way consider forex trading to be limited to buying and selling according to the prevailing exchange rate, so it is enough just to read chart movements on the forex trading platform.
There are also seasoned traders or those who trade forex for the short term, so they decide to just look at the technical side of the pair and time they choose.
However, this technical method can backfire if you are in the swing trader category or a trader who must have data to predict foreign currency movements for the next few periods. The technical method is also not suitable for you traders who focus on the long-term impact of the forex trading that you are doing.
So, if you belong to these 2 types of traders, then the fundamental way is also a consistent profit forex trading technique that you have to do as well as technical. Instead of just considering the movement through the charts in a technical way, you also read general market conditions in a fundamental way.
It's not just the foreign currency market trends that you read and follow in the fundamental way. You can also follow interest rate trends, economic conditions from your local country, to social, political and geographical conditions which also influence foreign currency exchange rates in your local country when carrying out fundamental methods.
Many say, using fundamental and technical methods simultaneously can minimize the risk of failure in forex trading if used proportionally. However, you need to know how to apply these two consistent profit forex trading techniques in order to achieve your goals.
Forex robot software is a solution for you to apply fundamental and technical ways of consistent profit forex trading techniques.