I know that there are more discussions about losses than profits in the forex market. But let’s leave losses for now and focus on the profit side. Your goal as a trader is to make consistent profits. Now since that’s your major goal, then it is very important that you learn how to make profits from your account. I am going to be sharing with you a few tips to help you learn how you can maintain consistent profitability in the market.
1. Learn From Your Good Trades
What we hear often in this space is that you are to learn from your losses and make adjustments. And it’s ok to do that. But how about the good trades? You should also start learning form your winning trades as well. Analyze your good trades. Take a screenshot of the trade before you took it and after it played out well in your direction. What did you do right on that trade? Ask yourself questions like,
- What trading pattern did I use for this trade that went in my direction?
- Have I traded using this pattern before or is this my first time of trading this way?
- What confluences/confirmation did I see before taking the trade?
- Did the trade fit into my trading plan or was it just a guesswork I did?
- Did I use good risk management on it or did I overleverage to make this profit on this trade?
- How did I react emotionally to this trade?
- Write out what you did right on all the trades. If you do this consistently, you’ll start to notice a similar pattern on the trades you are taking that’s going in your direction. Start focusing more on taking those kinds of trades.
2. Convert Profits To Your Local Currency
When you trade and make profits, no matter how small it is, convert it to your country’s local currency. If for instance you make $100 on a trade and you convert it to NGN currency, that will give over N100,000. When you do this, it makes you appreciate the profit you have made even better. Start doing this often and you’ll see how it will improve your trading psychology positively.
3. Start Thinking About How Much You Will Gain
You must have heard it times without number that you are to think about how much you are going to lose before you think about how much you are to gain. Now you can also start to do this. When you are about to take a trade that has a risk-to-reward ratio of 1:3 for instance, use your position size calculator to calculate your risk. Now take a look at the reward, what is the total amount you are likely to make if the trade goes in your direction? Think about it for a moment. If for instance, you’re likely to make $100 out of that trade, convert that $100 to your country’s local currency. How would you feel when the market eventually hits your target? What would you do with the money when it comes?
This is a psychological hack that will greatly help you have the right state of mind when trading. Because you’re looking forward to getting a $100 out of that trade, you’ll be patient and allow your trade run in peace.
4. Plan To Take Profit
Raise your hand if you have set SL on your trades before without setting TP? Have you also watched winning trades turn to losing trades? I’ve done that too in the past. That’s because most times traders do not really plan to take profit but they are always ready to take a stop loss. They set stop loss first because loss is the first thing on their minds. So how can you take profit when you did not really plan for it? Think about it for a minute. Now how can you correct that?
Before you enter a trade, plan how you are going to take profit ahead of time. Mark out areas on your chart where you are going to either take partials or close out all your trades. When price gets to those areas you marked out, take out your profit and leave.
5. Be Profit Conscious
There is a popular adage that says that ”what you focus on expands”. This means that the experiences you are having are a direct reflection of your thoughts. If you are experiencing losses, it is simply because you have consciously or unconsciously filled your thoughts with losses. And until your thought pattern is corrected, you are likely to keep experiencing more and more losses.
From now on, be conscious of your environment. Don’t engage in conversations where all they talk about is losses. The more you magnify losses and talk about it all day and night, the more losses you’ll experience. Look out for traders who are constantly making withdrawals and learn from them. Prepare to win. Traders who are serious about winning, take the time to really study the course and prepare their trading plan and analysis. Because they are focused on the winning, they look out for trades that come with high probability. Do not play around with low-probability setups. Don’t trade because you feel like trading. Trade to win.
The more you train your mind to think about making profits, the more profitable experiences you will start to have. This is a secret that not many traders know about. Do this consistently and you will notice a positive change in your trading psychology. It will also ultimately change your results positively.
6. Withdraw your profits
When you trade and make profits on your account, withdraw and reward yourself for the hard work you are putting in your trading. Buy some ”suya” for yourself or anything you need. You deserve to enjoy the reward of your labour. Repeat all these processes I have listed continually and you will see yourself making the consistent profits you so desire.
Did you find this helpful? Please let me know in the comments
