Many beginners who have come into contact with the world of currency trading for the first time are naturally interested in one very important question: «How to make stable money on Forex?». The answer is not particularly secret and includes several requirements:
- total control over emotions (especially greed);
- impeccable discipline;
- having your own successful trading strategy.
If the execution of the first two points can cause purely psychological difficulties, then the situation is more complicated with the development of an effective TS. In order to really make money with the Forex Platform Philippines, a trader must definitely adhere to a self-justifying system. It should give clear answers to the following questions:
- why is this moment suitable for a market entry point;
- where and why should you put Stop Loss;
- when to exit to Take Profit.
One important clarification should be made here – the Take Profit value should under no circumstances be less than Stop Loss.
What are the risks in this strategy?
Based on the knowledge of the probabilities of the appearance of «takes» and «stops», you can set their values already knowingly. We emphasize that the value of Stop Loss should be less than Take Profit in any situation. Hence, the rule – the smaller the ratio of the number of Take Profit to Stop Loss for a certain time interval, the more «takes» should be placed. All of the above refers to one of the most important concepts of trading – risk management.
Many beginners cannot make money on Forex by applying strategies, and quite advanced ones, often due to either complete ignorance of the calculation of real risks, or their incorrect definition. Now let’s move on to the last question, which plays a huge role in successful trading.
How much money can be risked without causing a significant blow to the trader’s wallet?
The answer will be effective management of your finances. It doesn’t hurt to know exactly how much money you’re willing to lose on a trade. These moments of novice traders can plunge into serious despondency. Many difficulties are easily resolved if you just take and ask for the opinion of experienced, successful colleagues.
One of the most difficult conditions for successful Forex trading is discipline. After all, it is known that working on oneself is one of the most difficult.
Keeping statistics is another important tool that you definitely need to work with. However, even the most excellent trading strategy cannot give a 100% guarantee of constant profit. The market is constantly changing. An experienced trader must carefully monitor the situation, be extremely disciplined and at the same time flexible. Today the trading system works perfectly, but after 2 months it began to falter. Why is this happening? What needs to be changed and how to do it?
Having clear answers is a necessary condition for stable earnings on Forex. Well, then only actions remain – competent and cold-blooded. Forex can become an interesting and profitable business.