If you are contemplating becoming a professional forex trader you are no doubt looking for ways to become more profitable and maybe even hoping to hit it big, never having to work again. The fact is that while this is possible it is by no means easy. Before you become profitable you will have to know some rules of thumb what are the basis for this. For one a solid trading plan and the nerve to execute it to the letter. plus a myriad of other factors. Like a business owner you will have to choose your tools of the trade carefully, count the cost and then see if it will work out for you. So here are some solutions to becoming profitable that you can control.
1. Trading costs. As an active trader you will need your trading costs to be minimal. This is like with every other business, if your costs are higher than income you lose money. A trader can spend thousands or even tens of thousands of dollars on trading costs alone resulting in 10%-100% lower profitability making a good trading system useless.
2. Trade execution speed. It does not stop with pure costs though. Every trade you make can be either executed on the price you asked or miles away. This comes down to the speed of your orders going through. Now it is good to have a fast internet connection with low latency but so the same applies to the brokers connection. A good measure would be having orders executed below 0.2 seconds at minimum.
3. Order fill rate. The other reason you may miss a trade has to do with the type of the broker you have. Is it a broker automatically filling your orders without last look or is there a manual dealer or automatic system gaming you. This is hard to prove but the best bet is to go with a no dealing desk or an STP/ECN broker who will send your orders to a selection of other brokers and banks.
4. Depositing and withdrawal costs. Depositing and withdrawal costs can have a surprising effect on your returns especially if you are regularly adding more funds to your account. Broker offering this for free give a boost to your returns.
5. Shared accounts PAMM and MAM As surprising as it is a MAM account that includes the funds of many investors can give you bargaining power with brokers because the more funds you manage and bring in the lower the cost of trading will be with a broker.
Written by TradeWiseFX Team
It takes time to succeed in forex by earning good returns. Traders must be patient with the market here. And trading along the market trend can help them to sustain in forex market.