After learning the necessary skills in forex trading, such as fundamental and technical analysis, the next step is to improve your profitability. Some do this by reading forex books, working on trade psychology, or developing trade systems. However, there are some other ways to improve profitability without having to use additional resources. Here are some of them:

One way to do this is to adopt correct position sizing. When starting out in trading, we are usually told to risk a constant amount per trade in order to manage risk properly. But when you want to make the most of the setups you are confident about or comfortable with, you can advance your trading performance by increasing your risk responsibly or you can scale down when you think a setup is more risky than usual. For example, taking trend setups could be your expertise so you can increase your position size in these scenarios. If the trade setup is against the trend or if you are betting on a result of an economic release, you can reduce the amount you risk on that setup.

Next is figuring out how to adjust your trade strategy to the changing trade environment. When you started out, you probably took the setups that were aligned to the market sentiment and your plan. However, as you noticed, it prevents you from catching pips when the market environment is different or when it keeps changing. In particular, you can have a trade strategy that uses the ADX or range indicators when the market is moving sideways. Conversely, you can have a trade plan that favors retracements and extensions for trending market behavior. In addition, your trade plan should also make allowances for changes in volatility.

Lastly, do not be afraid to jump in strong moves. We often wait for retracements to catch big moves at cheaper prices but this sometimes keeps a trader from actually being able to take the trade at all. If you are able to figure out that the price will still pull back, you can stick to this retracement strategy but you should also be prepared to jump in at market if you think price will just continue in a strong direction. Taking note of past price reactions to market catalysts can be a helpful guide in determining if price usually pulls back or if it will just continue in one direction without looking back.

Keep these ideas in mind when trying to work on your trade performance as these simple tips can be crucial in maximizing your profitability.

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