How To Trade Forex Profitably Every Month
More and more people are getting into forex trading for the hope of making a consistent extra income from it every month. However I have to say that most of them ended up losing their hard earned money either because they trade without a proper forex trading strategy or they learn those lousy strategies from marketers who are posing as traders.
In this post, I will like to share with you guys the reason why I can stay profitable in forex trading every month without failed so that you guys can one day achieve that as well.
Most traders are only interested in making profits and they do not pay any attention to protect their account. For me and my students, we will always pull our stop loss to breakeven when the price has moved certain pips in our favor.
If you take a look at those live trade videos that I have posted on this blog showing you the account that I am using to trade for users of my forex signal service. You will see that I always shift my stop loss to breakeven and this is the best way to protect your trading account.
Whenever you shift your stop loss to breakeven, the outcome of the trade is either a winning or breakeven trade.
2) High Risk Reward Ratio – I have been talking about this high risk reward ratio thing all over my blog and this alone tells you how important it is.
There is no way any trader can make consistent profits in trading without a strategy that has a high risk reward ratio.
If you take a look at the live trade video I have posted for the 9th Dec trade, you can see that I lost $2,000 but I win $8,000 which gives me a risk reward of 1:4.
With one win, we can withstand 4 consecutive losses. Imagine if you risk 3% on the trade, you will make 12% growth for that one particular trade.
3) Cut Down Your Trading Emotion – For trading, the less emotion you have for a trade, the better you will become. Some traders cannot withstand losses, when they get into a losing trade, they will try to enter another trade immediately which usually ends up as another losing trade.
From my experience in the past, there is very little chance a trader can win money from a revenge trade.
The only way to stay profitable is to trade according to your strategy and do not be emotional in any situation. As a human being, it is indeed very hard not to be emotional but you can tame your emotion when you trade on a demo for sometime.
4) Lot Size Management – This is another important factor that you must know in order to be profitable every month like me. If you have been a user of my trade copier service, you will know that I control my lot size in a trade so that we can hit a target profit percentage every month.
For example, if you enter a trade with 5% risk and the risk reward is 1:2. It means that you will win 10% if the trade is a profitable one.
If you have a target profit percentage of 20% per month for example, that one win will hit half your target already.
Once you hit another winning trade of 10%, you should start to control your lot size for the next trade. For me, I will then trade with 2.5% risk per trade so that I can stay near to my monthly target.
The problem with most traders is their greed. They just want to make more and more but they did not realized that there will be times where we will hit our losing streak in a row and this can prevent us from hitting our target.
Therefore as a trader, we have to be able to manage our risk and profits in order to make consistent profits every month without failed. This is exactly how I manage to make consistent profits every month since 2009.
These are the things that people do not talk about as most of the people out there are marketers who know nothing about this. They will tell you that you can make a few thousands dollars every month with just $250 account. All those marketers want is for you to pay for their service or course as they do not plan to deliver the results to you in the first place.
That is why I have received a lot of emails from readers and students telling me how much they have lost after taking the course from someone or signals from someone.
Do feel free to email me if you have any question
For those of you who are totally new to forex trading, I will suggest that you read through this blog post that I have written for beginners
If you are interested to learn how I do my forex technical analysis, you can take a look at the post below