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5 ways to be more profitable in forex


Jimmy Cook

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If you are contemplating becoming a professional forex trader you are no doubt looking for ways to become more profitable and maybe even hoping to hit it big, never having to work again. The fact is that while this is possible it is by no means easy. Before you become profitable you will have to know some rules of thumb what are the basis for this. For one a solid trading plan and the nerve to execute it to the letter. plus a myriad of other factors. Like a business owner you will have to choose your tools of the trade carefully, count the cost and then see if it will work out for you. So here are some solutions to becoming profitable that you can control.

 

1. Trading costs. As an active trader you will need your trading costs to be minimal. This is like with every other business, if your costs are higher than income you lose money. A trader can spend thousands or even tens of thousands of dollars on trading costs alone resulting in 10%-100% lower profitability making a good trading system useless.

 

2. Trade execution speed. It does not stop with pure costs though. Every trade you make can be either executed on the price you asked or miles away. This comes down to the speed of your orders going through. Now it is good to have a fast internet connection with low latency but so the same applies to the brokers connection. A good measure would be having orders executed below 0.2 seconds at minimum.

 

3. Order fill rate.  The other reason you may miss a trade has to do with the type of the broker you have. Is it a broker automatically filling your orders without last look or is there a manual dealer or automatic system gaming you. This is hard to prove but the best bet is to go with a no dealing desk or an STP/ECN broker who will send your orders to a selection of other brokers and banks.

 

4. Depositing and withdrawal costs. Depositing and withdrawal costs can have a surprising effect on your returns especially if you are regularly adding more funds to your account. Broker offering this for free give a boost to your returns.

 

5. Shared accounts PAMM and MAM As surprising as it is a MAM account that includes the funds of many investors can give you bargaining power with brokers because the more funds you manage and bring in the lower the cost of trading will be with a broker.

 

Written by TradeWiseFX Team -

 

Source - http://www.tradewisefx.com/5-tips-for-new-forex-traders/

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  • 2 months later...

Find the right time and right cost when you open a position, usually in NDD they offer most of the time lower spread but not in all cases for example when the news released that is a time when people find the cost is higher. So i think that is what i could give, with that people will be able to trade with less cost and easier to reach profit.

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  • 2 months later...
  • 2 weeks later...

That is good but it is okay to bound with just several certain ways. Some people prefer to do technical analysis over fundamental analysis and vice versa or in this case of technical analysis prefer for example fibonacci rather than MACD for example. Open mind is fine but if you find the way that gives you more than enough , i think stick with it for a while is not a big problem.

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forex is very risky but if you do it carefully then you will easily become successful in forex trading and i saying this because of my experience in this field.

 

I guess we need to be extra careful while trading forex otherwise many experienced traders do make bad trades during trading..

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  • 3 weeks later...

How to become profitable trader is not easy and need more practice also experience, but indeed role of broker also giving important point for trader and actually trader won't to losing money in forex trading, and also choose broker that has good server quality also very important especially for scalping trader

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I guess we need to be extra careful while trading forex otherwise many experienced traders do make bad trades during trading..

 

It happens to all of us. And there is no shame in admitting it. Nobody has ever found a holy grail and thus, some of our trades will bring bad results. And we have to accept it as a trading cost. We can't be right all the time.

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  • 2 months later...

Not just five ways but way more than that. There are many hundred ways for traders to be successful with some principal and the basic core of foreign exchange itself. If you want to be profitable in foreign exchange, first fix your emotions and also gain more experience by keep trading over and over again.

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