TIPS: MAXIMIZING PROFITS OF FOREX SYSTEMS

1. Define Simple Rules and Follow the Market Trend

The simpler the system is the better. If the trading system is too complex, it will be very difficult to stick to the rules. Complicated systems are also very confusing. A simple trading system makes it easy to follow the rules specified.

2. Eliminate Risk Quickly and Let Profits Run

Minimizing risk is far more important than making money when trading the trading market. Our first objective in forex is to make the trade less risky. We do and achieve this by entering only the high probability trade setups, setting stop loss orders, cutting losses quick & never average down, and letting the profitable trade positions run for sometime, just long enough, but not very long, so as to increase profits. Profitable trade positions are only held open as long as the system shows the trend is in place, these trade transactions should be closed immediately once your exit trading signal criteria is generated and given by the trading system.

3. Select & Choose the Right Forex Currency Pairs

Once you as a trader have your trading system, you'll want to start testing it on a demo account. Currencies have their own characteristics different from others. EURUSD, GBPUSD USDJPY, USDCHF are ideal. A system will give different results for each forex currency pair.

To maximize the profitability of your system find the most active market hours and times for a chosen and selected currency pair & trade during that market session only.

4. Use Equity Management Strategies

Always risk less than 2% per trade. With compounding, you will be surprised to see how quickly your trading account grows once you begin to trade with a profitable trading system.

5. Keep a Journal

Keeping a log of all your trade positions will help you to become better & better and this trading journal will help you as a trader follow the rules of your system. A journal will also keep track of your profitable trade positions & losses & you as a trader can analyze & interpret why a trade setup was profitable and why it wasn't.

6. Add take Profit Targets

Establish a daily, weekly, monthly trading profit targets when trading the market. Once you as a trader hit this target close your trades. This will stop you from over-trading and will also stop you giving back your trading profits to the market. Keep your risk : reward ratio high, a 3:1 risk : reward ratio is best. This means opening trade positions only when you have the probability of making 3 times what you are risking.

Example illustrations of signals derived & generated by our trading system

Example 1: Buy Trading Signal & Sell Signal Generated By Strategy

Buy signal is derived and generated by the indicator based system - Trade System Rules - Strategy Tips

Buy signal is derived/generated by the indicator basedtrade system, then an exit trading signal is derived & generated before another reverse sell trade signal is derived/generated on this chart

Example 2: Two buy signals generated by Strategy

Two buy Signals are generated during the upward trending market

Two buy signals are derived and generated during the upwards trending market - How to Use System Rules to Generate Signals

Example 3: Exit Signal Derived and Generated by System - Trade System Rules Exit Signals

Examples of Signals Derived and Generated by a Strategy - System Rules Trade Signals

Examples of Signals Derived and Generated by a System - System Rules Signals

Other Tips

Learn Education Training Tutorial

The first tip is to learn about the Market (Learn Lessons), those who don't learn the required trading knowledge from the various guides online will not improve their results no matter how many tips they have read. By not studying trading, these traders will keep making the obvious mistakes made by beginners without even realizing what they are doing wrong, Forex is a wide topic and so as to make profits a trader will be required to learn trading first.

Get a Strategy

A trade system is a must for every trader, a system is used to determine what decision to take. A system gives a trader an edge over others who don't have a trading plan. A good plan is one that is back-tested & proven to produce profitable trade positions. After coming up with your system you should backtest it on a Practice Account.

Learn Equity Management

Learn about The Various Capital Management Tutorials, don't attempt to trade the online trading market if you do not have money management rules. The two management guides which you as a forex trader must learn are:

What is Money Management?

FX Equity Management Methods

Learn about Leverage and Margin

If you don't know what is leverage and how it works and how it can affect your margin, then you'll not make any money in the currency market and you'll most likely lose your money in the market.

Have a Written Plan

A trading plan will take into account all the above forex trading tips and summarize them within one document that you as a trader can use to trade the online market.

In General

The first goal should be taking your time to really determine what your trading goals are and how much money you wish to make. Once this is determined then the following three suggestions will help you on your way to begin Trading. It is essential to keep all the 3 goals in mind when executing all of your trade positions but at the same time this is not a black & white tutorial to trading success.

The first thing is to remember that you really need to work with short term trade positions until you become profitable & know how to properly monitor these trade transactions. You should trade short term because this way you as a forex trader can monitor your open positions and quickly close any position whose trading signal setup reverses. In order to truly benefit from the system you have to be willing to take up the effort to watch the market to see exactly how long you as a forex trader can keep your money invested in the online trading market. Making short-term investments will help you as a trader to monitor your trades & control all the risks, do not leave orders open when you're away from your Desktop PC computer Desktop PC or when you are going to sleep, close all trades & only open orders when you as a trader can keep track of them.

Although it is very important to increase the amount of trade transactions that you're investing each time that you trade - some forex trading guidelines should be followed. The general rule of money management guidelines tends to be never to trade more than 2 % of your total account equity. This of course makes sense when you have a lot of money and capital in your account but what if you only have a couple of hundreds. Two % of $10,000 equals out to be $200 dollars. Even though it's safer to follow this rule it really doesn't make a lot of economic sense with smaller trading accounts. If you are investing on Forex this is when leverage kicks in to effect & makes all of the difference. In General the more forex capital you have to invest the better in terms of equity management.

The final suggestion is taking a bit of time to ensure that you get all of your details correct before opening any one trade transaction, this will be the best method. Keep it simple makes just as much sense on Forex market than anywhere else. Although this might require more time & effort to build up your trading profits it will save you money in the long term.

Trying to maintain your thinking as clear as possible will make your studying trading journey much easier but knowing when to breakaway from the norm also is important. Moving towards the right path will make success that much more easier to obtain and by studying all of the steps and logic you'll be able to continue to make profits. Forex is not hard to learn but a lot of traders lose money quickly because of not taking the proper steps in preparation & learning.

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