One can never say if forex trading is profitable or not. The answer to this depends on multiple factors such as experience of a trader, consistency in the market, intelligence, patience etc. There are various ongoing debates on this subject .But one should understand that if a market has emerged as the largest in the world and trades currencies worth more than $3 trillion dollars per day is bound to give profits otherwise, a lot of investors will not put money in the market and the market by now would have been forgotten or faded out. So if one is failing to obtain profits in the Forex trading market, he should adopt new strategies that can help him to make profits.
Like any other type of investments, Forex market has its share of risks and rewards. If one can find ways to mitigate the risks, he can earn some profits in the long run. Some of the forex trading strategies that can help in obtaining profits in the Forex market are
Wise Investments – One should invest in Forex only after knowing about all the details about trading and how the market works. One should trade only if they have substantial risk capital. Risk capital is the money one can afford to lose without compromising his living standards. One should not invest all his money in Forex. He should make use of other investment options also.
Trading Strategy – One should not get their emotions involved while trading Forex. Each one should have his or her own strategy. A person can get the ability to craft strategies after he gets some trading experience. Beginners should trade on Demo accounts for some time in order to get a clear understanding of how the market works.
Set Stop Losses – Irrespective of what trading strategy you use, it is important to set a stop loss target. Stop loss is nothing but a parameter That lets you to set a fixed rate as the closing price of your trade. After this amount is reached, on setting a stop loss target, the trading will be stropped automatically. This can prevent further losses.
Stay up to date – Even simple political changes in any country can affect markets considerably and currency values start fluctuating. Hence it is essential that you stay tuned to the latest developments in the world. Fundamental news can be a game changer overnight and can affect your trading or profits .It can also sometimes lead to irreversible losses. These can pave way for making forex trading profitable.