Forex trading can be a complicated affair, especially when you are new to it and are still figuring out your way — picking up the best strategies to get things done, to hit those markers that you’ve always wanted.
While a platform like Alari gives you a great experience and innovative tools to up your trading game, it is for you to know the best means through which you can double your money on forex trading. When you finally double profit on forex trading, you would know that trading is a practice that you can keep on continuing and get better in it with time.
Here, we will look at a couple of ways through which you can double your money on forex trading. These are some popular trading methodologies that have been devised over time with the aid and opinion of experts who have been trading full time for a long time and have seen the art of trading evolving through the various layers.
The leverage that you have while trading in the forex market on Alpari is quite unmatched, so with a little knowledge, you will know precisely how to invest and make a profit — even double it, although it may take some time.
Rules around short trading
If you are someone who likes short trading in short time frames and cycles — then a popular investment mechanism is waiting for a downtrend.
A downtrend happens when the candlestick on the trading graphs falls below the moving average of the trader. Now, you have to wait for your first sell signal — the time when you have to hit on the sell button. The first signal to sell is the bullish candlestick that forms on the simple moving average, which then denotes a higher hump.
This usually denotes that there is going to be a breakout in the trade graph towards a higher trend — the point where the chart starts climbing, inviting you to sell your order.
As soon as you start to observe this, you immediately open your sell market order.
Then you place your stop loss a few pips above what you see to be the nearest swing high — the most adjacent level at which the trade does not meet resistance. However, for the upcoming sell trades, you do not have to place a stop loss.
Short trading on Alpari can be quite profitable as the interface you get is quite well laid out. You get to see patterns clearly that let you place your bid accordingly.
Rules around long trading
When it comes to long-trading, you have to extra careful. While there are chances that you might make more money on your long trades, you might also incur significant losses if you do not watch out — or know — what you are doing.
The strategy that you can apply to extended trading revolves around waiting for an uptrend — waiting for a period when the candlestick closes above the moving average.
Now, you have to wait for an ideal opportunity to make a buy signal, and this will come when you see a bearish candlestick that forms above the simple moving average — the point where it is to start taking a dip.
As soon as you see the candlestick closing, you make a buy signal in the market. Now here comes the tricky part: to make sure that you are not incurring any losses, you have to place your stop-loss limit a few pips after the nearest swing low, which is the place of the closest support level. Even if the market starts to take an unexpected dip after that, you can be assured that you are not incurring any significant losses.
Now, as soon as you see the candlestick going up, you have to place a sell order immediately.
That done, you will be able to make sure that you make some significant profits with your extended trading.
If you follow these two methods of trading, you can, in due time, double your forex trading investment. While it is not easy, it does come with rigorous practice, effort, and time. There is never a quick “hack” around it.
Risk per trade and reward to risk ratio
If you are someone who does not like taking risks, it does not mean that you cannot double your forex investment. It will only take a bit of time.
Look at it this way: if you do trades with an R/R of 2, then the risk you have per trade is 1 percent. However, it takes 50 trades if you want to double your account. However, with an R/R of 4 and a risk rate of 2 percent, it takes around ten trades to achieve that double number. Higher risks mean higher returns. However, you must make sure that the risk factors are in place by using the tools discusses above.
The chances of earning high returns depend on the way you have learned to manage your open position. Noticing trends and understanding them comes with time — the more time you spend with it, the better you get. While either of the approaches mentioned above works well, you have to take into account which works the best for you — which of these can build on your investment over time with maximised returns. Don’t worry about finding a trading style while you are new — you will get to it once you start trading with Alpari.
With clear, on-time matrics, Alpari has become a popular destination for traders around the world. Over 2 million traders have chosen Alpari as their broken — and why not! With over 20 years of experience in the forex industry, the platform is crafted in such a way where you do not have any problems while laying out your trade preferences.
It is present in eight locations across three continents and comes with more than 250 trading instruments that you can use anytime and anywhere.
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