Now that you’ve learned the basic ways to make profits in the foreign exchange market, the next logical step is to use these fundamental and technical analysis skills to increase your trading profitability. Some ways of doing this include reading forex trading manuals or books, honing proper trade psychology, or working on forex signal systems. If you are short on resources though, you can make use of what you already have and, with a little more effort, work on your profitability.

First is to adopt proper position sizing. Beginner traders are often advised to stick to one position size, as part of basic risk management techniques. When you start to advance in your trading career though, you might want to consider upping your risk for trades that you are most confident about or reducing your risk for more risky trades. For instance, if you’re comfortable with taking retracement setups or if your trade is going along with the trend, you can increase your position size. If you’re taking a countertrend trade or playing a news release, you can reduce your risk to account for the event risk.

Another way is by figuring out how to adjust your trade plan to the current market environment. Beginner traders usually take setups wherein their trade strategy is appropriate for the market sentiment, but this would prevent you from taking the valid setups even when the environment is different. In particular, when markets are in a range, you can consider looking at indicators follow ranges or hint at potential breakouts. On the other hand, when markets are in a trend, you could focus on Fibonacci retracement and extension levels. You should also be prepared to adjust to changes in volatility, especially during summer periods.

Last is not being afraid to jump in. Traders often wait for better prices or retracements to hop in strong price movements but this can prevent you from being able to catch the trade at all. Learn how to determine if markets will still pull back or not before coming up with an entry strategy. Your observation of past price action, usually the reactions to major news releases, can guide you in figuring out if you should try to hop in the middle of a move or wait for a pullback to a better price.

These are just some of the basic tips that can help you make the most of the skills you already have in upping your potential profitability.

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