When a trader heads himself towards the forex trading he wonders is forex trading profitable?
This question is full of curiosity? Isn’t it?
And if I talk about the answer so it is biased and with so many misconceptions.
As every trader says what he has done.
I mean that every trader is, of course, an individual and he acts according to himself according to his thought process and his own mindset. No trader will ever commit what mistakes he or she has committed.
It is human psychology we are always right no matter what.
So every person blames the forex trading but never look which is the place where they have lacked?
Let’s be very open and see what is forex trading and how much it is profitable.
Forex trading, we trade currencies in forex trading, yeah you heard right we are into trading currencies across the running currencies of the world, Of course, which are trade able.
We purchase a currency pair one in quote currency and another in base currency and we bid on their increasing or decreasing prices according to the news and data and our thought that it is going to appreciate and depreciate.
So now you will be wondering what is the point to do all these kinds of stuff what is our return out of this.
So the answer is PIP. We earn our profits into the pips. This is our sole purpose to do all these activities.
Now let me ask you one thing.
Do you believe no currencies are appreciating and depreciating across the globe?
Why I am asking this is? Because as many people claim that forex trading is not profitable.
Now I believe you will have slight clarity that.
See the truth is the forex market has the largest volume. It runs 24/7 as it is global market runs and works in the whole world.
And I believe the market which is having the largest volume and runs 24/7 across the globe is not a small thing.
So I suggest you check your approach towards the Forex market. Because the market is the same for you and for everyone the prices of currencies and the way the contracts are executed everything is the same the difference is only our approach towards it.
Let’s discuss what can we do to change our approach towards losing trades to winning trades.
For you convenience, I am listing here some points which you can acknowledge and if you feel you should change so you can take steps towards it they are very small but efficient ones.
1.Capital management- The capital to invest is very important to manage. How much capital we are looking to keep at stake. It is a very significant factor. See we cannot keep our whole investments on the stake, of course, no one does and never do it.
2.Follow the brain- Always analysis for which trade is you going to put capital on. Try to understand the whys. Whys are the real answers to your questions? Why put the money on this call. Why it is important to act on. Why it is going to add value to my portfolio. Always follow the brain.
3.Control emotions- Traders generally trade by the emotions and fewer form logic. This makes their portfolio weak. And it generally goes into losses. Because the traders trading sessions are more influenced by greed or fear not from logic.
4.Risk management- it is very important to do. The traders generally do not follow it. Their risk is generally open-ended. And open risks are hard to recover when they take place. So keeping the risk managed is very important.
5.The Frequency of trades- For earning why to keep a high frequency of trades. In very low trades also the money can be earned. What generally traders do is they put multiple trades which risk their capital and when losses happen then it surely happens in very large quantity.
Forex Trading is very profitable only our approach and way of managing the trading makes the difference. How we are acting on things and what are the ways we should keep things. Trading is open phenomena which are not to close in a very restricted manner. Forex trading is a huge affair and can be done easily with the use of best forex signals but with the right mindset and with a good approach.