How To Play Forex To Always Profit
On this occasion, I will share the tricks on how to play forex to always profit. Here I want to focus more on smart ways to trade Forex. Because many out there are beginners who are less intelligent in calculating risk (bad money management), controlling themselves (emotions), and choosing the right strategy.
Making Money Management
Surely you often hear the term “money management” or abbreviated as MM or simply if it is translated as managing finance. Thousands have been conveyed that the main key to the success of a trader depends on how he applies good money management.
O newbies, don’t you often look for tips about how to play forex then what appears again is money management? How important is this MM that has been repeatedly conveyed by professional traders so that it always sets the top-ranked MM key to successful trading? So, at this time I am also conveying to you, LET’S START, LEADING UP TO BEFORE MONEY MANAGEMENT BEFORE RUNNING TO OTHER THINGS.
But the problem that is often encountered is that beginner traders often ignore this or most of them do not want to understand and deeply appreciate the meaning and importance of Money Management itself. What is often encountered is that there is no mastery about MM looking for technical analysis strategies here and there. I want to quickly trade to the ferocious Forex market. Well … It’s not that easy Ferguso … technical analysis is only 10% determinant of the success of a trader. It’s useless to search here and there for technical analysis strategies that are scattered on the internet, still, the ends lose if your MM is bad.
Well, therefore, let me straighten out how to play forex as you always profit from now on without fear of losing again. Here I will share the knowledge of how to play forex based on my experience because I am fed up and bored with the names lose and Margin Call.
Indications that you do not have money management
The indication that you do not have a good MM is when you experience a large profit then suddenly lose on a large scale (MC). Hayo … admit, whoever experienced something like this? Today you profit 2-3 times the amount of your capital then because of the PD, next to Open Position You experience a very large Lose without remaining your balance at all. Well, I’ve also experienced it, bro … calm down, I’ll share the tips on how to play forex properly so that it doesn’t happen again.
Come on, we start making our own money management!
Already cured with MC and also Loss? Hehe, don’t be discouraged and discouraged, all of them are stages of a process of becoming a Successful Trader. After all, there is something out there that is worse than your total loss. Today you only lose $ 100, $ 500, or even $ 1000. It’s still small … there are still traders out there who have become professional traders now who have experienced total losses above $ 1000 and above. So thankful you have not experienced such a loss. Thank God, it’s not as bad as them ?
How to play forex well and correctly is to make our own money management. The following is an example of one of the Money Management I made for my version. You can make your own version based on your trading style. My goal is to show you that you know the picture of what money management says itself. Evidently, with the discipline of running money management that I made, I was able to profit consistently every day even though there were some who lost (but not much). Because indeed, the name lose certainly will never disappear from the life of the trader, but we can minimize it.
Set Income Target and Limit Losses
At a glance, surely you who see it are confused. Well, a little explanation about the table above. Seen above is a table that shows the results of Binary Options (Olympic) and Forex (Octafx) trading. So, just pay attention to the Forex section. If at this time you are playing in Binary Options too, so you see it doesn’t matter. because indeed this MM applies also to BO. On Wednesday, Thursday, Friday and Saturday happened to be often profit and no loss.
Earning is the profit of each trade, the balance is the current balance, and the current profit is the total profit to this day (based on the calculations of the previous days) and the Pairs are the traded currency.
Well here I want to invite you, the most important ones, to start setting your income targets and losses! Seen, I am really very disciplined setting my profits and losses in the range of -4 to 4 dollars.
Determine How Many Open Positions in a Day
Only a day I can only open a position once a time. Why only once? Because in my personal opinion, opening a position more than 3 times a day can result in over trade which can later affect my emotions. So, the less the OP, the less likely my emotions will be drained. Because the longer we are in front of the chart, it will cause opium. Well, this addiction is dangerous so that our hands will “itch” to continue to do OP. So, this has something to do with psychology or emotion. Later we will discuss in detail the emotional problem section below.
Assign Lot according to Balance and Pips
In one open position, I set the lot per 0.05. if my balance is not more than $ 100 then I cannot OP more than 0.05 lots. So, to get $ 4 per day with 0.05 lots, then I target approximately 100 pips per day is enough.
This is also one of the main reasons why many beginner traders often experience Margin Calls. Yep, is nothing but less able to control emotions. Let us consider emotions to be a source of disaster for us and he is our greatest enemy. He is responsible for the margin call that you often experience. Imagine the hard work and profits that you have accumulated at the moment suddenly sold out in an instant just because of emotions. For that, let us examine what causes people to be emotional so that we are no longer victims.
Eliminate the Desire for Revenge
Broadly speaking, people experience MC in trading because they want revenge. They want to quickly cover the previous defeat by doubling the trading volume by increasing unusual lots or overtrading without risk considerations. Someone when emotional, health thinks and self-control will disappear.
Don’t Trade if It’s Emotional
Well, this is where MM’s role in emotions. When we have reached the target loss and profit in a day, then immediately divert your attention, close the chart switch to other activities such as roads, watching TV, or other things that make you move from the chart or screen of your pc. If the loss will evaluate why you are losing today, then prepare yourself for the next trade the next day. Likewise, if it’s already profit, don’t be to PD so you want to Open Position again and again. Remember if the target has been reached, stop immediately. Remember, when we have reached more profit than the target, let’s just say it’s a bonus (or just lucky).
Well, the newbies are finally in the part you like the most. Namely, learn about strategies or analyze charts. Well, I don’t want you to learn about this technical or fundamental analysis before being able to make money management and defeat your emotions. So, I assume you have recorded these 2 things. Let’s go, we enter the market!
How to Choose a Strategy
Well, actually all the technical and fundamental analysis strategies are good. Especially technical analysis, everything is good, nothing is not good. And … everything can also generate profits. The problem is, which of you actually fits technical analysis strategies. So this is a problem whether you are fit and not for a strategy that is used. Are you the type of person who likes to use BB, MA, Stochastic, etc.
Well before setting the strategy you are using, make sure you have researched which strategy you want to use. You do this by trying the strategy on a demo account. Calculate how many times you lose and profit using the strategy you choose. Select each strategy you use. If the strategy/indicator that you are currently using is more loss than profit, then you must replace the other strategies. In other words, you don’t fit the strategy.
Then, what exactly is the strategy benchmark said to be suitable? The strategy is said to be good or compatible with us when it has a ratio of 60:40. Where 60% is profit and% 40 loss. The higher the profit presentation on the strategy, the more suitable or good the strategy will be for you.
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