People, who do not go forward, go back. If you make no headway you fall into stagnation
This expression belongs to Belinsky, a Russian literary critic who believed in importance of the permanent development in any sphere of life or business. There is always one thing or the other, and this is either evolution or degradation. There is no third option. For a trader who is only a beginner in the market, a desire to hit the jackpot can have a bad impact. Practice shows that at the beginning a trader should be careful and sensible, using his/her wits and never rush.
There is a time for everything - when you gain experience, develop your skills, learn to manage risks and begin to receive permanent profit at Forex, then, you can start thinking about higher profits.
High efficiency in trading: two options
There are two options enabling you to achieve high efficiency in trading. These options notably differ from each other. One of the options is the aggressive method of trading. This option is highly efficient and at the same time highly risky.
The second option also can help you receive high profit but it requires higher deposit. This option may be more complex, but less risky.
Let’s take a closer look at each of them.
Aggressive trading at Forex
“High profit in the short time” - is the motto of an aggressive trader. An aggressive trader is aimed at earning high profit, so he/she does not pay much attention to the risk management.
An aggressive trader uses all his/her deposit for trading and
does not wait for the safer conditions when placing trading orders.
An aggressive trader is always active and often applies scalping in trade. Average profit of an aggressive trader may be quite high; however, he/she often suffers losses, which is not surprising.
This trading option is appropriate for the periods when important news or economic information is released. At these moments, using thorough analysis of the fundamental data, a trader is able to get high profit in the shortest possible time. But note that if there are no significant events in the market, the change in the price will be not sufficient to increase your funds.
Conservative trading at Forex
For traders who do not want to take high risks in trading, there are other ways of making profit at Forex. As you know, in the currency market profit of the trading operation depends on the volume of funds involved. The higher is the volume of funds you use in trading, the greater is the potential profit. So how can a trader do this and at the same time observe all the rules of risk management?
There are several ways:
- Margin trading
All traders know how to use leverage in trading. Traders who prefer conservative trading at Forex are very careful, but if a trader is 100% confident that the transaction is going to be successful, if a trader has carried out thorough analysis of the situation and made the most accurate forecast of the price movement, he/she can use leverage and earn big money.
- Broker’s contests and bonuses
Reputable brokers organize regular contests for their clients, offering good prizes, including cash. You can withdraw the money, which you receive as a prize and just spend or use it as an additional deposit for trading, which will increase your trading volume and enable you to receive higher profit in future.
- Platform Social Trading
This is a relatively new platform developed by LiteForex has already become popular among traders. Here, the experienced traders offer their trades for copying by the other traders and receive interest for this.
So, skilled traders carry out their regular trading and gain additional profit as an interest for copying their trades. The platform Social Trading brings them extra money for their high skills and experience. It also gives a chance to the beginners to carry out successful trades, avoid losses and gain new experience.
The information we share with you today may be not completely new for you, but we hope it helps to make things clearer, enabling you to increase profits in trading. Use new methods in trading; learn new things and test them, try to find the best ways at Forex and you will achieve high trading results.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.