Every trader certainly wants to know how a profitable forex strategy is consistent. Because in fact, consistent profits will be preferred over very large profits and experience some losses on the next trade.
Consistent profits are profits that are continuous and fixed. So, the main goal is not to make a big profit once or twice, but rather to seek profits that can be sustained.
Even when the profit is small, if it is sustainable, it will be more satisfying. But of course back to each perspective, because the size or size of the profit will certainly also depend on the amount of capital you use.
On this occasion, we will explain a strategy that will help traders earn sustainable profits. So, check out the following brief discussion to guide you to achieve sustainable profits from the forex market.
Consistent Forex Profit Strategy with Ease
In order to achieve sustainable profits when trading forex, of course you need the right strategy. Therefore, this time we will discuss how to have the right trading strategy or technique to achieve this goal.
1. Create a Trading Plan
The first thing you need to pay attention to when you want to achieve sustainable or continuous profits from forex trading is to create a trading plan. You can use the Microsoft Excel or Google Sheets applications to do so.
A trading plan is a record or journal that describes how your trading plan will be in the money market market. This includes information about pairs, time frames, buy or sell conditions, profit targets, stop losses to risk and reward ratios.
Creating a trading plan is still considered useless, especially for new traders. But in fact, every professional trader always makes a trading plan.
Therefore, it is important to understand how a trading plan is essential to your trading career. This will be a reference for your journey to trade in the market and be part of a consistent profit forex strategy.
2. Determining the Entry and Exit Strategy
When creating a trading plan, you need to have a method for opening and closing positions in the market. After all, this is an important thing that you need to prepare for forex trading.
Sure, there are so many entry and exit techniques from the forex market that you can use. For example, using support/resistance techniques, chart patterns to using various technical indicators such as MA, RSI and others.
In essence, you need to determine the technique that will be used later in determining the time of entry and exit from the market. If you don’t have one, you can make one and make sure you have backtested the consistent profit forex strategy.
You can backtest this trading system to test how it performs. For example, knowing the percentage of profit, loss rate to the average profit or loss that you can get.
Ideally, a trading system is worth using when the profit percentage is not less than 50%. So, make sure you are using a trading system with a good profit percentage.
3. Capital Mapping
The next consistent forex profit strategy is capital mapping or capital mapping when trading. Capital mapping is a thing that shows the strength of your capital, it should already be in the trading plan.
To be more optimal, traders need to include a realistic profit target according to the amount of capital. Ideally, traders can set a target of around 10-20% each month of the amount of capital.
Of course, sometimes traders can make more profits than the target. However, make sure to stick to the targets that traders have set to avoid careless trading.
4. Risk management
A consistent profit forex strategy will not succeed without the implementation of good risk management. Because no matter how good your analysis is, everything can be wasted in the absence of proper risk management.
Because after all, no analysis is able to predict market movements with 100% accuracy. No matter how many indicators you use, fundamental or otherwise, there is a chance of being wrong.
Therefore, you need to be aware that there is always a risk of every trade in the forex market. With good management, risks can be reduced and profit opportunities also increase.
Risk management includes many things, for example determining the amount of risk of each trade. A consistent profit forex strategy ideally has a risk per trade of only 0.5% to 2%.
Furthermore, traders should limit the number of open positions at a time. Avoid installing multiple positions at a time, ideally not open more than 4 positions at a time.
Then, traders also need to set a risk-reward ratio, for example 1:2. Don’t forget, take advantage of trailing stops to manage your risk in the market to optimize profits and minimize losses.
5. Use Leverage Wisely
In forex trading, leverage is known. Leverage promises greater profit potential, but it will also be directly proportional to the risk you will take.
The leverage offered by each broker varies, even reaching 1:1000. However, of course, a consistent forex profit strategy does not recommend that you use too much leverage, especially for beginners.
Ideally, you can start trading in the market with small leverage first. Start increasing leverage as you fly hours to avoid margin calls.
6. Discipline in Following a Trading Plan
One important thing you need to note from this consistent profit forex strategy is to always be disciplined. True, you need to adhere to the strategy according to the trading plan that has been made.
Previously, it has been discussed how to enter, sell, risk/reward ratio, position size and the use of leverage. Stick to everything you set out to do and stay disciplined to achieve sustainable profits.
7. View Trading as a Business
Not a few traders still view forex trading as a lucky activity. That is, traders are not really serious in trading in the market so the methods used are perfunctory.
It is important that you change that mindset and start looking at trading as a business. Because basically, trading is trading and this is similar to people doing business.
For a trader, a large one-time profit may seem more lucrative. But in fact, if a longer period of time is drawn, the trader with consistent profits is the winner.
As mentioned at the beginning, a consistent profit forex strategy may only provide small profits, depending on your capital. However, what is offered is a small sustainable profit.
So, the perspective used is for the long term, for example in one month, not just a matter of days. If you want to learn more about forex strategies.
