Every newbie has this question in mind – “Is Forex trading profitable?”, before starting trading. Above all, not just Forex trading, every trading starts with some fear, risk, learnings, and foresight. The same goes with Forex trading.
So, the question can’t be answered simply. If you are studious enough, you will certainly find Forex trading profitable. This article sheds some light on the question in a profound manner.
Some Factors Determining the Question “is Forex Trading Profitable?”
The profitability of any trading depends on various other factors. Here, we have covered up almost all the factors that directly or indirectly affect Forex trading.
1. Invest your time before you invest your money
Trading is not for all. The intelligence that trading requires is different from the intelligence that schooling requires. Know how well you can trade by having your hands on it with a smaller investment.
Firstly, learn trading from authentic sources. Read case studies of both successful beings and broken ones. Know your strengths and weaknesses. Know why you would be successful and why you would not.
2. Try Demo Trading
Before you actually invest all your savings, try with bits and pieces. Once you are comfortable and fully aware of the trading business, you can gradually increase your investment.
Trading is not about a day or month’s success. It takes a year or two to actually earn bread and butter out of it. The timelines differ from person to person and from time to time. At last, trading is all about timing. The perfect timing matters and your profitability depends on your decision-making at the moment.
Hence, begin with the demo trading account first. Initially, you won’t have to dig a hole in your bank account.
3. Note down your Profitability graph daily
No matter whether it is ascending or descending, make your graph of profitability daily. Take notes of whatever you are doing. In the long term, this habit of yours will save you for sure.
Make a sheet that includes your profit record and write down a comment mentioning all things you do. For instance, while driving to a certain conclusion what was your thought process and what all sources did you refer to. This data will help you going forward.
4. Do not break your Trading Path
Just because you are seeing any success at the site, do not break the trading path. Be consistent, be patient and upgrade yourself. And of course, be disciplined.
Trading requires practical knowledge and it generates profit only if we are following the trading strategy in a disciplined manner.
5. Make a checklist for Trading
Make a checklist or to-do list for trading to not miss on anything while actually trading. Also, with this checklist habit, you will save a lot of time and effort. The checklist may consist of all the tasks that need to be covered while trading.
Tasks like – trading time frames, name of the trading pairs, trading lot size, your specific trading risk-reward ratios, and your trading loss stopper.
All these factors are crucial while trading. Once you become a veteran in it, it will get going without writing or tracking. But initially, for beginners, it is a good habit to have a checklist.
6. Set a Trade Loss Stopper tools
Yeah, the risk is actually a must in the trading business. But there is a limitation to the amount of risk that you are able to take.
Set yourself a loss stopper. For instance, if you are okay to bear 10% of the loss but still want to continue with the same trade, you can go ahead. But if you hit the 15% loss and you are a bit frightened to go further. Just take the negative profit out.
A calculated and pre-defined risk is healthier for your trading growth. So, do make sure you are setting a trade loss stopper.
7. Do some Yoga and Meditation
Last but not least. Actually, this pointer must have been on the top of the list. To develop that great decision-making skill, cultivate patience, and stay peaceful with every outcome, Yoga and Meditation play crucial roles.
Whatever your trading screen profit is, with Yoga and Meditation, you are at 100% profit.
This is everything that we can answer the question – “is Forex trading profitable for you?”. Do let us know your personal experiences in the comments below.