A 100 profitable Forex strategy usually means that a particular person has made 100 pips profit while trading. A pip or percentage in points or sometimes price interest point is equal to 1/100 of 1% which is 0.0001. If a currency moves from 100 to 100.01, then it would be denoted as one pip movement.
The 100 pips daily is a Forex trading strategy usually for beginners. People who have a full-time job and only watch the market during their leisure can get the best out of this strategy.
There are several strategies available over the internet. However regardless of the one you use keep these aspects in mind:
Plan your trade – Staring at the charts and scalping 50 trades a day is strictly not recommended for beginners. Plan a minimum of at least 5 trades a day and stick to it for some time. Then increase the number as you get a hold of it.
Backtest the strategy – Before selecting a strategy and applying it make sure it works. See if it has a positive outcome over a specific time frame. Backtesting is very crucial in case you have no clue what the strategy is going to deliver.
Select your style – Different individuals have different mentality and personality. The strategies they implement also differ from person to person. There are scalpers, day traders, and swing traders. Make sure that the 100 profit forex system suits your style and trading plan. If it doesn’t then, it can potentially be the biggest reason for your failure.
Fix an amount – Set aside a specific amount that you want to trade with. If you are a day trader, then you can have a target each day. Whatever you earn, reinvest a certain sum of it and keep the rest for yourself.
Start slow – It’s certainly going to take some time to reach your 100 profitable Forex strategy goal. So don’t worry if you have encountered a few bumps in your path. Start slow and trade minimum position size. Invest small amounts and maintain consistency as you go. If you are a day trader then concentrate on one or two stocks daily
Research the market – If you have a 9 to 5 job or are studying then you probably would not get any time to do a market research. In this case the perfect time would be the weekends when the markets are closed.
Use a stop loss – The stop loss is an order to buy or sell a stock when its price reaches a speck point. Stop loss is unquestionably one of the most significant tools of a trader in case they are aiming for the 100 profitable Forex strategy. Simply, a stop loss limits the loss on a stock or protects the profit on it that you have already sold.
These were some crucial steps to remember before aiming at a 100 profitable Forex strategy. Following these will easily help a beginner reach his/her goal with patience and presence of mind.
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.