What is the best way to earn profits in forex?
Win more pips than you lose.
3 Likes
Find a consistent strategy and concentrate at least as much on your risk/money management as you do on your trade entries.
If we are having a good as well as reliable trading system we can get income from trading in the Forex markets. We should also understand that trading is not an easy task and requires special skills.
no doubt its not a easy task…one needs knowledge, keenness and a lot of patience
are you using any particular strategy??
I use my own strategy that has evolved over the years and, to a certain extent, is still evolving to match structural changes in market behaviour. I only have a few selected moving averages on my charts and occasionally add S/R levels and trendlines. But I also take note of the current fundamental issues and market sentiment, the most obvious of which at present is the EU-UK trade negotiations.
Traders have a choice of mechanical or discretionary strategies and the latter are inevitably extremely personalised, individual and tailored to suit the needs and limitations of the trader. Typical factors are capital, time, psychological make-up, short term profits or long term investments and so on.
But the fact that discretionary strategies are so individual means that what suits one type of trader will not work in the same way for another. So it is very important for a new trader to define in concrete terms what kind of strategy suits their situation and then find or build a strategy that fits.
strategy is important to bring good amount of profit but honestly speaking any kind of trading strategy can be useless if there is no regular practice.
what you think there is any difference between trading strategy and trading approach ? its all about same or any difference ?
the practice is more important and for that we the traders always choose demo account but i dont support that , the micro account is the best choice to acquire all kind of live knowledge and experience.
The best way to earn profit is to make the best of market volitalities. Because it is the best time to take advantage of the difference in the buy and sell prices.
Both terms are rather loosely defined and can mean the same thing or entirely different things.
In my opinion, a strategy is more specific and defines market selection and entry/exit rules, and can also include detailed risk/money management criteria.
A trading approach may be much more vague such as type of trading (e.g. scalping v. swing), what instruments, what sessions, time of day, etc, and all without any specifics.
Are you talking about the best strategy?
true that. one can make a good profit.
profit in Forex is a regular task but need a long term experience with more information , and besides this of course we have to make sure good money management.
Beginners need to understand that forex trading is quite difficult. It is not what it may look like. You have to do a lot of hard work to be able to make profits. Otherwise, you will only lose.
true that, its not the win win situation always and is not easy as it seems like
Sovo, any current strategy that you are practising on?
Yes, I will come back to you on this.
My strategy is designed for two purposes; 1) trend trading a strong/weak forex pair and 2) trading equity indices from the long side as a longer term investment. My SW forex pair selection is very similar to Dennis’ method here on BP. Stock indices are mainly S&P500, Nasdaq, FTSE, and DAX.
My strategy is very discretionary in that I do like to follow the underlying markets out of general interest, and therefore inevitably form a view on them. But my trading is entirely based on TA confirmation.
I guess if I had to give my strategy a name then it would be "The three Guppies" 
because it has evolved from two quite old trading methods: The Three Ducks and Guppy Multiple Moving Averages (GMMA), both of which are explained here on BP. But my strategy is no longer very close to either of these.
Like the 3 Ducks, I use three TFs but my choice is Daily/4H/1H. The Daily identifies the trend, its direction, and current phase. The 4H identifies when the market is taking its next leg in the trend direction, And the 1H identifies the timing for entry and early-warning for exit if TL not reached.
Like the GMMA, I have two EMA ribbons, the fast ribbon is 8-14 periods and the slow ribbon is the classic 20-50 EMA. The same ribbons are on all three charts.
I also apply PA type lines and candle structures but only on the daily chart.
Basically, having identified a trend on the Daily chart I just wait for the lower two TFs to line up with it (like with the 3 Ducks method).
SL and TL are set according to what looks sensible from both a structural perspective and R:R. Exits occur from one of three events: TL hit, SL hit, or a reverse signal. However, I do monitor trades and will manually close out whenever commonsense overrides the strategy parameters.
That is about it.
But this is not my thread and apologies to the OP for this slight deviation. I won’t take up any more space with this.