Maintaining consistency in profit factor is really hard. Trading is like an art. You can’t make any real progress unless you truly understand how to place high-quality trades without risking too much. Most of the time the novice traders don’t give enough time to educate themselves in the field of the Forex market. If you look at the successful Aussie traders you will understand the power of stable mindset. Having a stable mindset is very crucial to your trading success as it helps the traders to deal with their losing trades. Mastering the art of trading takes time. Most importantly you need to work smart to develop the perfect trading system. Some traders say that trading strategy is not necessary to make a huge amount of money but it’s absolutely wrong. You need to focus on the technical and fundamental part of trading to develop the perfect system.
In order to make a consistent profit, you must learn the perfect way to trade this market. Without having a proper knowledge, you won’t be able to wait on the sideline for a long period of time. Aggressive traders always lose money. They don’t understand the fact that quality always beat quantity. Many novice traders in Australia have mastered the art of trading due to their strong patience. Instead of placing trades all the time, they wait on the sideline 99% of the time. If you can find the perfect trade setup, a single quality trade will be enough to secure your whole month profit.
Holy Grail in Forex market
Do you really think there is Holy Grail in the Forex market? Do you really think that you can make a consistent profit? To be honest it totally depends on the traders. Money management is often considered as the Holy Grail in the Forex market. If you can simply follow the 1:2 risk reward ratio, you can easily make money even after losing 50% of the time. You need to master the art of trade management to establish yourself as a professional trader in the CFD trading industry. Losing trades are inevitable and there is nothing you can do to avoid the losing trades. Most of the time, the novice traders’ places trades without knowing the risk factors. They simply use a big lot to make a huge amount of profit. At times they might have some big winners, but they lose a single trade, they become extremely frustrated and try to recover their loss.
Recovering your trading loss just after closing a trade is very risky. This is often referred as revenge trading. Most of the time, the novice traders don’t give them enough time while placing the trade. They follow the aggressive trading strategy which in the long term affect the profit factors of the traders. You need do nothing 99% of the time. Never take any trade based on your emotions as it will ruin your investment. Always try to trade the high-quality trade setups with proper risk management. Even if you lose any trade, embrace it and wait for the next possible trade setup. Risking too much in any single trade is nothing but a suicide mission.
You need to have a solid trading routine to trade this market with managed risk. But maintain the perfect trading routine is really hard. You need to write down your trading rules, at least one time in a day so that your subconscious mind understand the importance of your trading routine. Make sure that you follow a paper-based trading journal since it is one of the easiest ways to find profitable trades. If you don’t assess your trading history on regular basis it will be almost impossible for you to identify your trading mistake. So make sure that you always trade this market with strict discipline. Update your trading journal on a regular basis so that you can easily learn new things.