How to consistently win in forex trading

Forex trading is a fantastic job or hobby, but unless you consistently win, it can be a short-term career or an expensive hobby. A win-win trend is often followed by a lot of losses if you do not have a serious attitude towards your money management strategies and control your emotions. In this article we are going to establish a money management and psychological strategy that will help you to consistently win in forex trading.

Let’s take a look at the trade settings first. Now this article is not about defining a winning strategy; But to show you that even a strategy that can only win 50% of the time can consistently generate revenue. You may already have a winning strategy but poor finances and psychological management.

It is important to note a 3: 1 risk reward ratio. In simple terms; You need to find businesses that can repay you 3 times the potential loss. If you take this approach you will only have to win 50% of the time because if you win you will lose 3 times. Once you have mastered this rule you are well on your way to a winning strategy.

Do a thorough research on your business and don’t jump into the market without analyzing whether it is basic or technical. If you can follow these rules, you are halfway to winning the psychological battle.

The biggest problem for traders is to trade too early because they think they are going to miss the trade or too late because they are afraid to pull the trigger. Quitting a trade too soon because they believe it is going to turn against them, only to see it hit the next time, will, take the level of profit. Or, as equally common, they let trade run and run in the hope of making more profit only to let all profits suck in the opposite direction. There is an old saying among successful entrepreneurs: “Plan your business and do your business plan. That’s exactly what you should do.”

Don’t let your passion get you into a quick profit if this is not your real plan. Make sure you plan to take a trade turn before your profit level and have a pre-determined plan to make a profit. A firm plan is to make a profit if the trade reaches 90% of the target and shows signs of reversing. If you have set your stop loss correctly from your original analysis, do not extend it because you are compromising your 3: 1 risk reward ratio. The first step in consistently winning Forex trading is to keep these rules low.