Wanna Earn Million Dollars in FX Trading? 21-week Habit for Stable Profit Matters

Every investor wants to make a steady profit in trading, and aspires to make a million dollars from the forex market. Before reaching this goal, it is necessary to develop a short-term habit of 21-week stable profit, followed by the 21-month habit. Financial trading features both simple and complex process. So the key is we wanna make it easy or intricate.

To develop a correct trading idea.

Individual forex investors should understand that its hard to profit stably and only a few people become rich overnight. It takes risk-taking and trading skills to double your capital, which indicates that the speculation is made on the basis of investment mentality. In layman's terms, investment relies on the concept, while speculation relies on luck. If the trading concept is correct, the luck seems to come easily. So, how to establish a correct trading concept？ We need to follow the three points below.

Set goals, divide them into stages, and refuse to be spontaneous, with an effort to develop a good trading habit for stable profit. Firstly we need to set a goal for ourselves and see the daily, weekly and monthly profit starting from the present moment. We also need to develop a trading habit of making money steadily. Many investors who like trading a lot should consider that if they have the experience of continuous profits in the market before betting on the trades. On a weekly and monthly basis, if the trading record shows loss most of the time, you should think over whether it is more important to lay a solid foundation first for trading.

Develop a steady-profit habit, youd better start from the first 21-week plan. Let's start by setting a goal for ourselves on a weekly basis. For example, we aim to achieve a good trading record for 21 consecutive weeks in a short-and-medium term. The 21-week cycle is very essential, and if you stick to do one thing for the 21st week in a row, it will soon become one of your habits. Once we achieve the short-and-medium-term goal of 21 weeks and become a stable and profitable trader, believe me when I say we will have a better understanding of forex trading. A trader who keeps profiting can have a deep understanding of trading ideas, skills, money management and risk control.

It is not difficult to make consistent profits, which can be obtained by focusing on simple trade and training the ability to manage capital as the core. How to develop the habit of making consistent profits？ How to reach the 21-week goal of profiting stably in the short and medium term？ Simply put, forget about the rules and regulations, just focus on simple trading, and improve the ability of capital management. The first thing we need is to drastically cut off the inappropriate positions and profit expectations rather than to apply EA, read the famous books of trading masters, and attend various training courses.

Consider stability first, then profit, which is based on the stability. Take a $10,000 account for example, previously we were used to opening 0.5 lot of EUR/USD and adding positions. Then in the implementation of the 21-week stable profit plan, it is worth reducing the position to 0.05 lot, with at most eight orders distributed among three to four currency pairs, each of which has not more than three orders. We go to trade for 21 weeks under this premise, I believe we will have a different experience. This is a basic framework for simple money management, which works as expected. If you can do this, stability and profitability should not be a problem. On this basis, we can then think about trends and retracement/breakout to improve profitability.

To start the 21-week stably-profitable plan

No matter how long you trade, how large your capital scale is, and how good your risk control is, there is only one secret to get long-term stable profit in the forex derivatives market rife with temptations and traps: capital management is the key, whose core is trading with low margin, the top priority of the entire risk control plan. From the logic of trading, trading with low margin is considered as the way to control risk. The income of traders depends on the ability of technical operations, as well as market technical analysis and judgment as profit gain methods.

So, which is more important in trading, risk control or profit gain methods？ The reason is very simple, and risk control determines the survival in trading, while profit gain methods can be the icing on the cake. In the forex market, survival is always in the first place. If you do not understand this truth, loss of money is inevitable. Risk control is essential in forex trading, especially in the derivatives market. The odds of successful survival in the short and medium term are less than 10%, and that in the long term are less than 3%. The elites basically have more than ten years of experience in forex trading, most of whom are still unable to stably profit, but their probability of loss has been greatly reduced.

We can learn that trading with low margin is the only way to keep a stable trading according years of experience. No matter from our own reality or the communication with the veteran investors in industry, we all agree that trading with low margin is the key point of long-term profit of forex trading. All excess earnings and windfall profits become a flash in the pan in the long run. Some traders may get nice returns by trading with high margin in two or three years, but it is likely that all their previous efforts have been in vain one day. The market tells us that if we continue to trade with high margin, we can lose the money made in the previous five years within a year or even two months.

We all know the the cruelty and joy of trading. The main risk in the forex market comes from our own lack of discipline. The market always runs there, whether you trade or not. However, our minds are fluctuating, greatly exceeding the fluctuation of the market. Our desires and greed will expand dramatically with different situations and capital scales.

In order to prevent ourselves from being defeated by desires, we need to take measures in terms of the rules, and the only way is to trade with low margin. On the contrary, trading with high margin can make traders suffocated and depressed by loss. In this industry, there are many examples of people who have driven themselves into the corner. Therefore, we must learn to survive in the forex market quietly, with a deliberate and rational manner of trading. So trading with low margin is the only way to reach the goal. Some people will ask that if the trading with low margin is applicable to forex trading？ It depends on the position of an investor. If he or she want to gamble and make quick money, then there is no need to trade with low margin. Just grab the opportunities within a few years, make a big profit, and then exit the market.

With the goal of long-term stable profit, we need to improve our trading ability on the premise of low-margin trading to win excess earning. How much money can be made？ It depends on a trader‘s own ability. Actually traders can make high profit with the low-margin trading. So, what’s the low-margin trading？ For traders, a clear and quantitative trading system is needed. The following is a trading method of creating position with 8 orders.

Principal: $5,000

Single position: 0.01 lot

Trading EUR/USD, GBP/USD, AUD/USD, USD/JPY only.

Do not trading volatile gold and crude oil.

Total position with not more than eight orders.

Not more than four orders each currencypair.

It should be noted we can apply a micro martingale strategy into trading single instrument, that is, after the first order is locked, add one more at 30-point intervals; after the second one is locked, then add one more at 30-point intervals; after the third one is locked, then add one more at 30-point intervals. At most four orders are added for a single instrument. We can made a hedge against the orders, not more than four orders in one direction. We set only stop-profit with all orders, instead of stop-loss. Thus we do not have to bother about the possibility of stopping out. We try to practice capital management by trading with super low margin.