You must have heard that Forex is profitable, boom, you rush into it without asking question, then after many weeks of blown account you are stuck at level zero; but instead of sitting and re-thinking your plan you are on the wild goose chase looking for special indicators, expert advisors and signal groups to join. If you stumble on this article by mistake or you search for how to become a consistent and profitable forex trader and it leads you here, please be patient, read and digest every thing I am going to share in this article, if you ever want to become a consistent and profitable forex trader.
How to become a Consistent and Profitable Forex Trader
I have been a consistent and profitable forex trader for over 4 years, but prior to that I wasted two years searching for the holy grail strategy to forex trading. I was duped, scammed and I even join some signal groups; while everyone else shared good screenshots, my story was different.
It got so bad, that I fell into the grip of depression so I decided to take a break from Forex for 6 months. During the break, I read the Candlestick Bible, study Volume profile, trendlines, and Supply and demand trading, then open a new demo account and started practicing the little knowledge I got from my research on the chart.
It wasn’t easy at first, but little by little I was able to develop a strategy, then grow my equity by depositing small money in my forex account till I get to a comfortable amount and I was sure of my plan and strategy in the market.
Here is what I want you to do.
1. Find a Market that works
If you want to be successful in forex, stop jumping from one indices to another; you can only do this when you have the right knowledge and equity which takes a lot of training and time. I started my successful trading career trading only US 30 before jumping into Boom and Crash few years ago.
I was trading just US 30 when I bounced back after the break and the journey was fun. There was two traders I was following on tradingview , both of them used to have different views on the direction of US30 but their analysis was very helpful. I was only reading on why they come to their different conclusion not the direction of the trend, that helped me a lot.
I jumped ship to Boom and Crash because the market is open 24/7 and I picked Crash 500 from day one as my only companion on Deriv. I took time to study the movement of crash 500, the history and I was able to develop a good strategy using Supply and Demand that help me to get only the spikes with minimal loses when the spikes delayed to come.
If you want to be a consistent and profitable forex trader, find a market that works, don’t trade all asset, focus on one, study it and you will understand it with time
2. Find a Good Broker
Don’t allow anyone to deceive you, having a good broker is very good to your trading journey. I am currently using Deriv, because they have good leverage, their spread is good, deposit and withdrawal is almost instant and they occasionally share market update which can assist you to better understand the market. Once you identify the market that you want to trade, find a suitable partner (broker) which can assist you and be a good companion throughout your trading journey.
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3. You will Lose it, Don’t fret
Loosing trades is part of your trading journey. Like I always tell traders, if you lose a trade, let it be as a result of market structure violation not because you took the wrong trade. Whether you lose or win a trade, make sure you review all your trades at the end of every trading day to ensure that they all fall into your trading strategy. Let’s the reds teach you, not weakened you
4. Avoid low probability trades
One of the challenges that many traders face is jumping into the market when they think they see an opportunity. Personally, I have a trading strategy that inform my entry and exit on a trade, if all the conditions on my strategy is not met, I can’t jump into any trade. Try as much as you can to avoid impulsive sell or buy in the market only enter the market when all your parameters are set
5. Develop trading strategy, plans and set clear trading goals
If you are trading without a plan, strategy and clear goals then you may not likely go far in trading. So develop a strategy and a plan that will guide your entry and exit in the market, set clear trading goals that will entails your daily target, and risk management strategy (lot size, take profit, trailing stop and stop loss). Your strategy should not be too broad, it should be something simple and your daily target must be realistic.
“Always remember Forex is risky, you can lose all your equity so risk responsibly”