It's no secret that every forex trader wants to make as much money as possible, otherwise what's the point? Even if you're already making steady profits, you might be surprised to learn that there are some very simple changes you can make to put more money in your pocket. If you are a beginner, it could even be the difference between a positive or negative profit ratio. Would you make the effort to make a difference?
Change #1: Use a Simple Trading System
It may seem that more complicated trading plans make more money. After all, these plans seem to consider more factors and are more technical, so it's easy to think they're better. In fact, simplicity is the key to making regular profits and avoiding unnecessary confusion. If you know what you're doing, you'll be less stressed and you won't have to spend as much time in front of your computer screen, so everyone wins. If you are currently using an overly complicated plan, do yourself a favor and switch to a simpler trading strategy .
Change 2: Trading in the best times
Did you know that there are times when it is best to trade? The best times to trade occur when the sessions overlap and things tend to heat up towards the middle of the week. Monday and Friday nights are slow and no one wants to trade on weekends. You must therefore give yourself the necessary time when there are no good trading opportunities. Other times to avoid trading? Major holidays and major news. If you trade during the best times and avoid the worst, you will be able to profit more efficiently without making the mistake of trading in more volatile market environments.
Edit #3: Check Your Broker's Costs
Whether you recently signed up with a broker or have been using the same one for years, it's a good idea to check their rates and then compare them with a few other brokers . You may find that switching brokers will save you a ton of money. Also, several new companies have probably been created since you opened that old trading account. Say your broker charges a 5% withdrawal fee for card withdrawals, but you can switch to another broker with no withdrawal fee. Or maybe you could save 0.5% or more on spreads or commission fees. In the end, these small changes will add up and leave you with more of your money.
Change #4: Limit the pairs you trade with
Some traders like to trade a variety of assets, which can be profitable, but it may be more useful to stick to around three pairs so that you don't have to follow so many price-affecting factors in different markets. If you are able to focus more clearly on what you are trading, your profits are sure to increase as you avoid missing out on important information or feeling overwhelmed.
Change 5: Make smarter leverage choices
The more leverage you use, the more money you are likely to make... or lose. If you are looking to increase your profits, now is a good time to think about the leverage you used and your profits. If you have lost money, you can reduce the leverage you use, as this will reduce the amount of losses you suffer from losing trades. On the other hand, those who make regular profits may want to increase their leverage slightly, as these traders are more likely to profit. From time to time, you can increase your leverage in increments as long as your profits remain constant.
Change #6: Be patient
Some traders find it difficult to sit still without committing to trades, especially after a while. However, you should not trade for the sake of it. If the market does not offer you good opportunities, simply do not trade. Otherwise, you risk losing money on a trade when you could have chosen not to trade at all. At times like these, remember to stick to your trading plan and know that the market will provide you with more opportunities down the road.
Change #7: Never Stop Learning
It's easy to start thinking you know everything you need after trading for a while with steady profits; however, you should never stop looking for other online trading and investing knowledge. Learning trading psychology and reading about different or new strategies are some examples of topics you can look into, but you shouldn't stop there. The more you know, the more likely you are to increase your profits, and you might even find a better trading system along the way.