Saturday, 11 April 2015

How to make Consistent profit with forex

Consistent profit with forex

Making profit is not that hard in forex, but if you ask how to make consistent profit, that would be different story! the reason simple because you can make profit but not all the time! so the big question is why and how to find Best Strategy for our forex Investment? I have to admit finding good strategy is not easy, you need to test and see how your strategy could survive for long term! sometime forex strategy could works well for 3 month, but in month 4 and 6, it could not works anymore! 

If you ask why this could happen, the reason simple because ! you need to go to basic! for example your strategy about Technical analysis, using Fibonacci and other Indicator! it could works and making profit, let's say hundreds bucks or more, but not for long term! simple because there is a news announcement!  when we use pure technical analysis and get hit with economic news, everything will fail into pieces! most of trader that depend on news, such as news trader usually have different view about where market want to go! if news very important and have high impact on economy such as interest rate or Trade balance, there's a chance they will try the opposite trade! and when this happen everything including Trend can go against technical trader! 

To make consistent profit you need to learn 3 analysis e.g Technical analysis, Fundamental analysis and sentiment analysis! you can learn the basic at babypips analysis  read that page, and understand how it works! and then try again , and avoid when high impact news come out! or stop trade for a while, just for precaution! most of veteran trader knows Economic News are their nightmare! so be wise and patient! try again and again! soon or later you'll find your own best trading strategy to make consistent profit ;)

Forex Trading Strategy For Beginners

If you want to know about best forex trading strategy you need to learn from the very basic of Forex! by knowing and learn basic, you can move to the next step! for example, let say you already found best strategy ever! though without knowing basic, such as, Forex Term, Forex Analysis, Forex Money management, Forex Risk management, and etc. your strategy can fail! simple because no matter how good your strategy is, you need to make alternative! about what if, your trading having issue with fundamental news! of what if your strategy can't go wrong and you need to stop losses more further! in a nutshell you need to implement risk management! to learn about this you can read this pages, Investopedia Forex Term, or you can visit this pages BabyPips Analysis about Risk and money management you can learn anywhere, I am sure some blog already write about that stuff somewhere :)

Here a few advices to find good strategy in forex

  • First you need Learn the basic! the idea to learn the basic simple because you need to understand about what you're doing! by knowing the basic, at least you know what next advance! because most of the times, advance technique are come from and developed from basic, for example news Trading strategy! where do you think this idea came ? :) yep, form fundamental analysis! Price action strategy ? yes, from technical analysis! carry trade strategy ? from interest Rate I.e Fundamental analysis and so on and on!
  • next step is Choose which strategy that fit with your style! for example if you like number and graph! that's an indication of technical analysis, simple because 80% technical is all about number and charts! so if you love what your doing at least you can improve strategy that already exist! and hopefully you can make your own strategy that make profit!
  • After you decide which type you are, next is Test and trial! this is important that you need to do, the idea is you need to see by yourself is this works, or not! if works then good! but what if not, test again and find where the mistakes! do this over and over, soon or later you'll find which one and best forex strategy that you can use to make money with forex

3 step above looks simple but the fact is, not all! so take your time do this and that, to find which best strategy for you, at least you'll need 3-6 month test periods! if you can pass the test, there's a chance that you can make decent profit from forex!