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How to Get the Best Return on Your Investment

Posted on | February 21, 2018 | Comments Off on How to Get the Best Return on Your Investment

Investment business is one of the most complex professions in today’s world. Many people start trading the currency market once they know the lucrative profit factors. But sadly 95% of the traders are losing money in real life trading. Most of the new traders don’t know the fact without having a precise knowledge of this industry, it’s not possible to make a consistent profit. Even if you manage to learn all the details of this market, you will have to embrace losing trades on regular basis. Just have look at the portfolio of the expert UK traders. It’s true that they are making a huge profit at the end of the year but still, they have some losing months. You can’t do anything to avoid the losing trades. For this very reason, all the successful investors in the United Kingdom always focus on tight money management factors. Today we will discuss how to get the best return on this investment industry.

Always embrace your losing trades

Do you know why 95% of the traders are failing in the trading industry? The novice traders don’t have the courage and skill to embrace their losing trade. Most of the time they place big lot size trade and when things go wrong they become frustrated. It seems the novice traders are always looking for winning trades. On the contrary, the pro-UK traders always consider the random outcome of each trade. They never place a trade with big lot size even though they have strong confidence in their trading strategy. Losing or winning doesn’t actually matter as long as you trade with high-risk reward ratio. You have to train your mind so that you can easily cut your losing trades early. Make sure you are giving enough time to your profitable trades to maximize your profit potential.

Use a simple trading system

Never try to trade this market with a complex trading system. Many professional traders in the Forex trading UK community are giving useful advice to the novice traders. Every expert wants the novice traders to follow a simple trading system. If you start to trade this market with a complex trading system it will be nearly impossible for you to deal with the market variables during the high level of volatility. So which trading system should you follow? You need to find this answer by assessing your personality. However, if you can learn price action trading strategy you can easily avoid lots of false trading signals. Price action trading strategy is often considered as the most reliable and profitable trading system in the entire trading industry. It allows the novice traders to place a trade with an extreme level of accuracy. Most importantly being a price action trader you don’t have to deal with tons of market variables.

Trade with high-risk reward ratio

Risk reward ratio is very crucial to your trading success. If you don’t trade this market with the managed risk you are going to blow your entire trading account. On the contrary, if you trade with 1:2+ risk-reward ratio, it will be hard for you to stay on the losing side at the end of the month. Most of the novice traders place a trade with the negative risk-reward ratio. They don’t understand the fact that this factor is ruining their trading career. Instead of looking for huge profit you need to focus on your investment. Place trade in favor of the market trend and you will see a dramatic improvement in your trading career. At times you will often have to face series of losing trades but this is very normal. Just focus on your trading discipline and follow your trading strategy. Never become aggressive in the Forex market as it will cost you heavily. Follow the basic rules of investment and use leverage in a calculative way to maximize your profit factor.