You may often see traders who experience euphoria in winning so they forget the trading management. The main concern of the trader diverts itself is after the market turns the transaction. As a result, traders may experience significant losses after earning a profit. This is because they are too happy and forget to stay focused on getting consistent trading profits.
Understanding the basic concepts of learning forex can indeed be a reference, but you cannot be sure what will happen in the forex market in a few seconds later. Even learning the material does not guarantee that forex traders will earn profits consistently.
Then, Why can’t You Get Consistent Trading Profits?
There are many factors why most traders have not been able to profit consistently. One of them is because they do not understand how to choose a currency pair.
As you already know, currency pairs have their own characteristics. For example, GBP/USD pairs have a formidable nature in making trends. Although the signals and all kinds of forex combat gear are considered complete enough, traders will find it difficult to make decisions against the movement.
This is different from the pair EUR/USD. This pair has a movement that generates more power than forecast indicator signal. However, traders can anticipate to prepare the transaction to follow the direction of the trend.
Both EUR/USD and GBP/USD have characters that the traders generally know. However, the currency pairs may be different from their own characteristics under certain conditions. For example, the announcement of related officials or the decision of the central bank can change the cycle of currency movements into a journey map of new prices that are difficult to track, especially on the movement of the pair EUR / USD or GBP / USD.
Then, what are the solutions?
Record Monitoring Results in Journals
As long as you understand the character of each pair, you can minimize losses and get consistent profit.
The only easiest way to be able to find out the pair movements is by continuously monitoring and assessing, weighing, and recording the results of these movements into a trading journal.
Maybe some of us will underestimate to write a trading journal. However, it is very important to help traders gaining consistent profit. According to Investopedia, it’s a great tool because a thorough journal includes your trading details. Thus, you can track and evaluate your trading performance in certain days easily.
Use the Most Comfortable Currency Pair
The most important thing from choosing a pair does not take a pair that has never been tried.
You should choose just one pair that is considered quite comfortable and feels good to use. You do not need to use the other traders’ currency pair.
Besides, you have to make sure that you have tested the pair for a long time or at least three months and produces a net profit of 100%. It will affect psychologically and display a perspective on the trader that transactions using a pair of his choice can be profitable.
It is undeniable that a pair that has been successfully tested, produces an experience that can be utilized repeatedly in the times to come.