Making 10% per month in the Forex market is not an easy task. Some of you might think it’s impossible but many pro investors are making more than 10% per month. There are two basic approaches to secure 10% income per month. Either you have scalp the market with a big amount of capital or day trade the market with small capital. But of these system requires extensive skills. So, if you think you have enough skills to deal with such market condition read this article and learn how to make a 10% return per month. Make sure you read it twice if you get lost.
The advance risk to reward ratio
Trading with a 1:2 risk to reward ratio often kills the trading strategy. Making a consistent profit based on such risk to reward ratio is very hard. You need to look for a 1:1.5 risk to reward ratio in each trade. And if you can follow these rules, just winning 53 trades out of 100, you can still make a decent profit. You might be thinking of trading with a higher risk to reward ratio is the best way to make a profit from this market. You have to understand the fact, you are not looking for smaller gains. You are trying to push the profit factors to an extreme level. So, if you trade with a high-risk reward ratio, you will be having more losing trades and securing big profits will become harder.
Tighten the stops
You need to tighten the stops in each trade to earn more money. CFD trading is all about managing the risk with an efficient approach. Once you learn to trade the market with tight stops, you can make a decent profit without losing too much. Think about the long term goals and try to improve your trading skills over some time. Once you have the perfect skills, increase the lot size as you tighten the stops. Let’s say, you are trading with a $10k account. So, the overall risk factors should never exceed 1%. Increase the lot size as much as you can but without breaking the 1% rule. By using this simple technique you can boost the profit factors to a great extent.
Trade the major news
Making big profits requires a perfect understanding of the major news. To secure a 10% monthly gain, you must learn to trade the major news. News trading is one of the key reasons for which elite traders can make big profits in a short time. But when you trade the major news, make sure you are not taking too much risk. Increasing your risk exposure can result in a big loss. Securing a 10% profit per month doesn’t mean you have to win all the trades. Unless you are certain about the trade setups, never trade the major news. Safety of your trading capital should be your top priority or else you will lose most of the trades. Think like the elite traders in Singapore and reduce the risk exposure in every possible way. And learn from the losing trades so that you don’t make the same mistake again.
Trade with the high-end broker
To secure a 10% monthly gain, you must trade with the market with a highly regulated broker. Unless you trade with the A grade broker you are not going to get access to the professional trading environment. Without having access to precise price feed, it’s very hard to find quality trade setups. Though the low-end brokers will give you many lucrative offers they will tear you apart in the long run. Never step foot on the dirty traps set by the unregulated broker. Choose your broker very carefully or else you might even get scammed. Read the public reviews before you fund your account. If required, seek help in the trading community and find the best broker for your trading career.