At the beginning of this article, I want to tell you that this article filters out the excess and provides a reliable path to becoming a consistently profitable trader.
Yes, I dare say so.
This solution is so simple, but most people don’t follow it long enough to produce results.
They would not follow this solution, just as they would not stick to a strict diet or stick to going to the gym or even quit smoking.
The power of letting our emotions and emotions rule our lives is so powerful that most people end up not following their plans, diets, and goals.
Still, I want you to know that change is possible.
Absolutely – you can become a better version of yourself and achieve your goal of becoming a consistently profitable trader.
I’m here to use these posts as much as possible to help you create a transformation.
Let’s get started.
If you’re like most traders, you often imagine your potential future self — you picture yourself as a trader who keeps making money.
But I’m sure you’re wondering if you can really be that person.
Because sometimes, when you look at where you are and where you want to be, the contrast between the two is so great that you begin to wonder if your ideal self is still attainable.
Or maybe it’s just some false hope you might have – like a mule, hurrying along, hoping to catch a carrot on a stick.
I think everyone is involved in the foreign exchange market for the purpose of making money and profits. However, it is not so simple to achieve this goal, and certain tips are needed to know. Therefore, the following tips will be introduced to you.
One: foreign exchange only do short-term and ultra-short-term long-term to combine the fundamentals, but you should have such experience: the fundamentals should fall, but the exchange rate is to continue to rise, let the long losing repeatedly, for the long-term loss, stop win points are huge, then the order contract volume must be reduced, so even if the gain of several hundred points, the actual profit did not increase.
Short – term because of the loss and stop are small, you can increase the corresponding number of contracts.
In terms of time cost, there are many opportunities for short and ultra-short term. As long as the method is proper, huge profits can be obtained in the short term. While the long term position is held for a long time, with fewer opportunities and less single, the profit is far less than the short term and ultra-short term under the condition of the same accuracy of single.
The setting of stop-loss points in foreign exchange trading is very necessary. We often emphasize to our clients that stop-loss points may not bring us obvious profits, but they can protect our trading funds.
But there are still many friends who fail to do so.
For those who can make long-term profits in forex trading, they will strictly set and firmly execute the stop loss level, which reduces the risk of trading to the lowest level.
Over time, the benefits of stop-losses are reflected in earnings.
Short or super short line should be enough to win in 10-20 points, if the stop is too small, only 3 or 5 points, such a method is not advisable.
How to set a stop loss?
If it is in the favorable position to do Europe and the United States, do not set a stop loss.
Foreign exchange margin is used to make short – and ultra-short – line.
Three: short – term ultra – short – term currency that is Europe and the United States: do not do cross, such as pound day.
You may think that the pound fluctuates a lot on a daily basis and gets money quickly, but if the fluctuation is large, you must be afraid to place orders and reduce the amount of contracts, so even if you get a lot of points, you may not necessarily increase the profit. However, in Europe and the United States, although the fluctuation is small, you can place a large order appropriately. Even if you don’t have so many points, the profit can still be large, and the order is more stable.
The trend of the straight trade is very easy to follow, whereas the trend of the pound is so messy that you can’t even predict it in any way.
The United States, Japan, Australia, New America and PoundAmerica are easy to be single-minded, short term fluctuations are small and can not be done;
Europe and America have the lowest point spread, less than 2 points, low point spread is suitable for us to do ultra-short line, so that the transaction cost is low, conducive to profit.
Europe and America is suitable for technical analysis, is to do short and ultra short line of the first choice.
Do the chart, please be sure to look at the daily chart, hour chart, 30 minutes chart, and then place an order according to the minute chart.
Four: short-term daily order quantity should be planned and executed in place, preferably about 10 orders.
Five: Position management: how many hands to open the appropriate light position, with 1:100 leverage, $10,000 to open one hand or 0.5 hands.
A tenth of a dollar is best for 1000 dollars.
Six: Make a rigorous trading plan: when foreign exchange investors make relevant trades, they are often well-planned, which depends on their own trade before the trade will have a rigorous analysis and planning process.
It includes the selection of trading cycle, the arrangement of trading time, the collection of basic information, the judgment of potential trading products and so on.
Making a rigorous trading plan can help traders stay organized during the trading process.
There are a lot of skills to learn in foreign exchange, and these tips for stable profits are the key for everyone to learn.
Next up: Focus on a good deal!
A good deal You can see that everyone who has been successful in this field understands that.
They understand that their deals are much better if they don’t remember how much money they made or lost before, or if they don’t try to predict how much money they will make or lose at the end of the day, week or month.
In other words, these consistently profitable traders understand that they need to “take one good trade at a time.”
This “one good deal at a time” philosophy, without competition, has been a major factor in their success.
To be clear, this isn’t exchange-specific;
In fact, you’ll hear salespeople talking about the importance of focusing on “a good deal,” while in sports you’ll hear coaches telling their athletes to focus on “one good opportunity.”
In essence, a good deal, a good opportunity, is an exercise in maintaining the status quo.
Simply put, our past experiences often shape our present behavior.
Whether the cumulative sum of all our past experiences is positive or negative, we use it to predict the future and navigate the present.
We create expectations about future outcomes, and when things don’t work out the way we expected, it often leads to performance anxiety and disappointment.
Of course, it’s important to learn from the past so that we can better plan ahead;
But the more we worry about the future (e.g., I better win a deal this time or I’ll be disappointed) and reflect on the past (e.g., I should have chosen this deal over that one), the less effective we become as traders.
Being fully present with no agenda, goals, or expectations is a performance booster.
When our brains are at their quietest, we are able to be completely immersed in what we are doing and perform better because of it.
Unless there is a real need to know how much money you made or lost before, or how much money you will win or lose in the future – for strategic purposes – it doesn’t help you to think about the results of your trades.
You need to stop being so obsessed with the outcome of your trade and give 100% focus, patience and kindness in front of you.
Do one good deal at a time.
That’s it!
No more, no less.
Practice a good deal Let’s see how this works in practice.
Let’s say you’re a day trader.
First of all, here’s what I want you to do.
Before you start the trading day, purposefully say to yourself, “No matter what happens, I’m going to remain calm and rational.”
“I’m going to focus on doing one good deal at a time.”
This little mental exercise should be part of your trading plan.
Think of it as just another rule to follow in your plan.
That’s the first part.
The second part is really getting a good deal.
A good deal is when you follow your rules.
When you’re focusing on a good deal, remember: The more you try to find a deal, the less effective you’ll be as a trader.
Confirmation bias allows you to see what you want to see, not what you need to see.
The best deal candidate is the one who won‘t impress you through your own special psychological activities.
This is very important.
Let the market come to you, according to your predetermined rules.
When it does, execute your trade according to your rules.
If you are a short-term trader, you might put up to three of these good trades a day and then close.
Win or lose, come back the next day.
Your attention and willpower are limited, so by limiting the number of trades you make, you stay current and objective and don’t end up overtrading.
If you are a band trader, place up to 4 of these good trades per month.
All this means that some days (or months) you’ll only get a good deal;
Other days (or months) you may get nothing.
You have to accept that.
Always approach transactions with this purpose and structure in mind, and you’ll be surprised at the results.
There are two common mistakes that traders make Here are two common mistakes that I see traders make when trying to implement the concept of “a good trade.”
1. They judge trades by their results.
Most traders look at how much money they have made or lost and judge how well they have traded based on those numbers.
In their mind, if they make a profit, it means they’re trading well, and if they lose money, it means they’re not trading well.
Of course, that’s not accurate.
A winning trade is not necessarily a good trade, and a losing trade is not necessarily a bad trade.
Make sure you understand.
Sometimes you fail even when you do everything right.
This is inevitable.
But, over the long term, a string of “good deals” will almost certainly lead to positive trading performance.
2. They focus on too many conditionals.
Often, traders try to trade too many different terms.
This is a poor management of time and energy;
In addition, it promotes excessive trading.
You don’t expect machine guns to come close, you rely on sniping.
A consistently profitable trader focuses on one or two Settings, focusing on perfect trades.
They don’t force a trade.
They accept and embrace the most important part of the job – the waiting.
They wait for a signal in the trading window.
But if they don’t get a chance to be in the window, they make wise use of restrictions and occasional commands so they don’t have to sit in front of a screen all day.
Consistently profitable traders know they won’t make every move, and they’re fine.
Again, they’re not out to make money;
Instead, they let the market come to them, making one good deal at a time.
Verdict: I told you at the beginning of this article that I was going to show you a simple but sure-fire way to become a consistently profitable trader.
As you can see, this good trading concept is very simple, but it can be very powerful if you have a robust trading system in place first.
But make no mistake, simple doesn’t mean easy.
Again, the power of letting our emotions rule our lives is so powerful that most people don’t implement this solution until they see results.
It’s sad, but it’s a reality.
So now the question is, can you differentiate yourself?
Can you go the extra mile and go where most people won’t go?
I’ll leave you with the answer.
Remember, there’s one good deal after another.
That’s all you need!
If you do that, the profits will follow.
