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Calculate your expected return in the market

The problem of Forex trading is that traders forget the expected return of their currency. If you are a poor and dreaming of becoming a president of a country, it is not dreaming. In Forex, most traders daydream about the market. This market is large and traders find it attractive to trade in the market. They know there are trillions of dollars flying in the market. They want to catch the money and everybody wants money. In this market, traders need to expect their return money with reality. You cannot make thousand dollars on the market if you do not take risks for 500 dollars.

This market is all about risking and trying to make a profit. Traders find themselves lost in the money of this market. They try to make thousands of dollars every day. The professional and successful traders in the market also do not expect a big return. You have to know and calculate your expected return. If you are trading with 10 dollars in your account, 2 dollar is a big profit. You cannot expect to make 40 dollars out of your 10 dollars. Also, you need to calculate your return. This calculation will be based on your strategy and the market movement. If you are lucky and your strategy works, you can make your expected return in the trades.

How to calculate your expectancy

There are many methods and strategies to calculate your expected profit. In Forex, this market is volatile. You have to take into account that you will lose the trade in the market always. If it is your day, you will go home with a profit. Professional and successful Forex traders trade the market with the calculated return. This calculated return will also increase your profit. When you know you can make 40 dollars when you risks 20 dollars, you will do not place your trades on the market with 25 dollars. You will have a calculation and take home an expected profit. However, if you are relatively new in forex trading then you need to use your demo trading account to learn the art of trading before you start considering about profit factors in the market. Traders with strategy and professional knowledge always trade with expected return and place their trades based on this expectancy. If you know what to expect, you will make more realistic trades on Forex with your money.

Quality of the trade

The quality of your trade execution plays a vital role in the forex trading world. If you look at the success rate in the forex trading industry then you will be surprised to see that only 5 percent of the traders are making consistent profit in this market. So how do become a profitable trader? The answer is pretty simple. You need to master the art of trading by using your demo trading account in the market. It’s true that learning the basic trading skills will be extremely difficult for you at the initial stage but if you trade with an extreme level of discipline then within a few months you can create a basic trading model by using your demo trading account. But when you develop your trading strategy in the market make sure that you emphasize on the higher time frame since it will allow executing high-quality trades in the market. As a full-time trader, you must know that quality trade is one of the most important factors for long-term success in this field.

Summary: Reality in Forex makes traders successful. If you are trading in Forex, you have to know and expect your profit. Make a trade and return home to profit from the market. Never set unexpected goals in the market as it will increase your risk factors in trading. Always trade with rational logic and proper risk management factors.

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