How To Increase Forex Profits

Trade Limit

For any given trade, the trader will not lose more than $X. If your last trade losses are greater than this preset amount, then you should determine what course of actions you will take. These actions will likely force you to stop trading for the rest of the day. This means that you should shut down your trading platform FOR THE DAY. You then should determine how the free time well be spent. You might want to re-evaluate the strategy that lead to your loss and make any changes if necessary, and then paper trade until you are certain that the strategy continues to work.


Weekly Limit

For any given trading week, you will not lose more than $X. If your weekly cumulative losses plus your last trade losses are greater than this predetermined amount, then you should decide what course of actions you will take. These actions should probably include terminating the rest of your trading for the trading day and the trading week. Again, you will shut down your trading platform FOR THE DAY and refrain from trading the REST OF THE WEEK. You should then decide on how the free time should be spent. Suggestions might be to re-evaluate the strategy, incorporate any changes if necessary, and paper trade until you are confident that the strategy continues to show a consistent profit.


Monthly Limit

For any given trading month, you will not lose more than $X. If your cumulative monthly losses plus your last trade losses are greater than this predetermined amount, then you should decide what course of actions you will take. These actions should probably include terminating the rest of your trading for the trading day and the trading week and the remainder of the month. You will shut down your trading platform FOR THE DAY, FOR THE WEEK, and FOR THE REST OF THE MONTH. You should then decide on how the free time should be spent. Suggestions might be to re-evaluate the strategy, incorporate any changes if necessary, and paper trade until you are confident that the strategy continues to show a consistent profit.


How Will You Handle Large Losses and Profits?

Your trading capital must be money that you can afford to lose. You need to determine at what point you will bring in more money in the event of a large loss. In addition you'll need to define when you will take money out of your account as your profits increase.


How Will You Determine Your Position Size?

The size of your position should never exceed the limitations listed in your risk management rules. Something you might want to consider is that some strategies might have a high probability of success (e.g. trend continuation strategies) which enable you to adopt a more aggressive position size at entry. Other strategies might have a lower probability of success (e.g. reversal strategies) and your risk management rules may only allow for a more conservative position size at entry. However, once the trade and the new trend are established, you might want to think about adding to the position at predetermined continuation signals. This potentially allows you to increase your position size while at the same time maintaining a very low exposure to risk.

How To Increase Forex Profits 100% in 10 Minutes

This simple exercise will increase Forex profits 100% and works for 99% of all short-term FX traders - stop trading so much - widen out your stops - widen out your profit targets - and only trade in the direction of the trend indicated by 4 hour chart.

1) Stop trading so much

Sure there are no commissions but the spreads are HUGE and believe it or not (well you'll believe it after you do the simple exercise below) the spreads are reducing your profits 100%!

2) Widen out your stops

Initial stop loss should be a minimum of 23 points; I use between 23 and 35 point stop losses for short-term trading.

3) Widen out your profit targets

Unless you think a trade can make you 100 points or more don't do it.

4) Only trade in the direction of the 4 hour chart

The real money is made in the direction of the trend

Simple exercise

1) Download all your trades for the year into an excel spreadsheet (if you don't know how to do this ask your broker for help).
2) Determine the dollar value of the spread for each trade.
3) Sum up the total dollar value of all spreads for all trades and add this number it to your current account balance; this is your spread adjusted account balance.
4) Take your spread adjusted current account balance and divide it by your opening balance at beginning of year; the result will be a percentage change.
5) Take your actual current account balance and divide it by your opening balance at beginning of year; the result will be a percentage change.
6) Subtract your spread adjusted year to date percentage change from your actual year to date percentage change.
7) That number should be 100% or more
8) Take the necessary steps as outlined above (1 to 4) and improve your results 100%

Forex Tips To Avoid Loss

Always think in terms of probabilities. Trading is all about thinking in probabilities NOT certainties. You can make all the “right” decisions and the trade still goes against you. This does not make it a “wrong” trade, just one of the many trades you will take which, through probability, are on the “loosing” side of your trading plan. Don’t expect not to have negative trades - they are a necessary part of the plan and cannot be avoided.

. The place to start your market analysis is always by determining the general trend of the market.

. Trade only with a strategy that you've proven to yourself.

. When pyramiding (adding positions), follow these guidelines.

a. Each successive layer should be smaller than before.
b. Add only to winning positions.
c. Never add to a losing position.

One of the few trade management rules that we can state we never break is ‘Never add to a losing trade’. Trades are split into winners and losers, and if a trade is a loser, the chances of it turning right around and becoming a winner are too small to risk more money on. If indeed it is a winner disguised as a loser, why not wait until it shows it’s true colors (and becomes a d. winner)before you add to it. If you do this you will notice that nearly always the trade ends up hitting your stop loss and does not look back. Sometimes the trade turns around before it hits your stop and becomes a winner and you can count yourself very fortunate.

Sometimes the trade hits your stop loss and then turns around and becomes a winner and you can count yourself unlucky. Whatever the result, it is never worth adding to a loser, hoping that it will become a winner. The odds of success are just too low to risk more capital in addition to the initial risk.

e. Adjust protective stops to the breakeven point.


. Risk Control

A) Never risk more than 3-4 percent of your capital on any trade
B) Predetermine your exit point before you get into a trade
C) If you lose a certain predetermined amount of your starting capital, stop trading, analyze what went wrong, and wait until you feel confident before you begin trading

. Don’t trade scared money. No one ever made any money trading when they had to do it to pay the mortgage at the end of the month. Having a requirement to make X dollars per month or you will be financially in trouble is the best way I know to completely mess up all trading discipline, rules, objectives, and leads quickly to disaster. Trading is about taking a reasonable risk in order to achieve a good reward.

The markets and how and when they give up their profits is not under your control. Do not trade if you need the money to pay bills. Do not trade if your business and personal expenses are not covered by another income stream or cash reserve. This will only lead to additional unmanageable stress and be very detrimental to your trading performance.

. Know why you are in the markets. To relieve boredom? To hit it big? When you can honestly answer this question, you may be on your way to successful forex trading

. Never meet a margin call; don’t throw good money after bad.

. Close out losing positions before the winning ones,

. Except for very short term trading, make decisions away from the market, preferably when the markets are closed.

How to Start Forex Trading.

To become a successful Forex Trader you should have following:

A Good Broker:

The various brokers offer various packages for trading the Forex markets. Be sure to select the package which suite you most, first test any demo accounts offered and use the opportunity to "learn" the tool available. One broker Marketiva provide good platform and if you open account for free you will get $10000 Virtual and $5 real, isn’t it good deal. $5 for free and most important you can trade as low as $1. If you are learning then try all Forex Strategy on virtual currency then go for real $5 provided by Marketiva, if you start winning then invest more. You will start winning if you read this post, because you will find some good Forex strategy about winning Forex. Just go ahead.


Ways to Trade / Forex Trading Strategy:

There are two types of Forex trading strategy, technical forex trading strategy and fundamental forex trading strategy. Both have a radically different approach to making trading decisions.

Fundamental forex trading strategy focuses on money policy, government policy and economic indicators such as GDP, exports, imports etc within a business cycle framework

Technical forex trading strategy focuses on price action and market behavior, especially on chart and technical indicators.

Generally speaking, fundamental forex trading strategy can only judge which direction the market will move, and technical forex trading strategy can supply both direction and rough currency rate., but from my point of view if you are new in Forex trading / you have less time for Forex trading then you should go for Fundamental forex trading strategy using simple forex trading strategy explain HERE, because by using this forex trading strategy you will know when you have to do Forex trading. But if you have time for Forex trading then you should go for both Fundamental forex trading strategy and Technical forex trading strategy. But for Technical analysis you should know the Basics of Technical Indicator.


Risk Management and Money Management:

Every successful trader should know how much risk he is willing to take, and what profits should result from the trade. This is the basis of every realistic trading strategy.

Money management is 90 percent of the game. Money management is the most important aspect in Forex trading, As a matter of fact, many successful traders rank money management as the highest contributor to their overall success in the markets. If money management is such a critical factor, then it becomes important to know exactly what money management is, and is not.