The benefit from an investment is called a return.

Why you should be consistent with your method

by Dwayne Buzzell Forex

Traders in Forex market always think they can beat the market. For this, they always keep trading the market with one after another strategy. This is a big mistake in Forex. Most of the time, traders who have been trading the market for a long time know from their experience that they need to follow one strategy for their success. Even all the professional trader in Switzerland always trade the market with a single trading system. They know very well that a simple trading system is capable of making long term profit. Instead of looking for big winners always try to maintain consistency with your trading result. Though a lot of traders cannot understand the importance of consistency in their strategy, we hope that you will after you have read our article.

No strategy works all the time

First of all, you have to understand that there is no strategy which will work all the time in the market. Even with the most successful strategy, you will find that you are always losing in markets. If you look at the professional trader, you will find proof of this word. These traders are also losing their money in Forex. It is very natural and normal that you are likely to lose money with all types of strategy. Changing your strategy will not work in the market. The time that you will spend on developing and mastering your new strategy if you use that in your old strategy, it will be much efficient.

Consistency pays off

Most importantly, consistency pays off in Forex. When you are trading in a market with a long-time strategy, nothing can go wrong except losing. If you try to use a new strategy in CFD trading, it will only consume your time but you will not find that as effective as your old strategy. You have to stick with your strategy no matter what you want to try. People who are an old trader in Forex, they always say that you need to be consistent whether it is your strategy or your trading market to win in Forex. However you need to make sure that you are always updating your trading system to keep track with the changes of the market. For instance, if the market starts exhibiting lots of false spikes then it’s better for you to use a wider stop loss. On the country, if you see extreme level of stability in price movement than you can easily increase the lot size and use a tight stop loss to make a bigger profit.

Not all strategy suits every trader

The strategy of the trader also depends on the personality of the trader. If you love the fast result, you are not going to change your strategy for day trading to positional trading. It depends on your mood also and on the market that you are trading. If you think switching strategy is very easy, it will not pay off in Forex. You need to be very precise and trader mindset to change. Only change if you think this strategy really does not work for you. Otherwise, keep trading the market and try to develop your strategy. You might have a huge amount of money but never spend any amount on buying bots and EAs. However being new to this market it’s always a good thing to go for some paid trading course. The professional traders can easily guide you and help you to understand your basic nature so that you can develop the trading system based on your own personality.

Summary: Making money consistently is one of the most difficult tasks for every novice trader. If you want to consider yourself as a professional trader then develop a solid trading strategy and stick to it. But when you develop your own system make sure that your system is capable of dealing with the losing trades.

An investor may bear a risk of loss of some or all of their capital invested. Investment differs from arbitrage, in which profit is generated without investing capital or bearing risk.

Savings bear the (normally remote) risk that the financial provider may default.

Foreign currency savings also bear foreign exchange risk: if the currency of a savings account differs from the account holder's home currency, then there is the risk that the exchange rate between the two currencies will move unfavorably, so that the value of the savings account decreases, measured in the account holder's home currency.

In contrast with savings, investments tend to carry more risk, in the form of both a wider variety of risk factors, and a greater level of uncertainty.

To invest is to allocate money in the expectation of some benefit in the future.

In finance, the benefit from an investment is called a return. The return may consist of a gain (or loss) realized from the sale of a property or an investment, unrealized capital appreciation (or depreciation), or investment income such as dividendsinterest, rental income etc., or a combination of capital gain and income. The return may also include currency gains or losses due to changes in the foreign currency exchange rates.

Investors generally expect higher returns from riskier investments. When a low risk investment is made, the return is also generally low. Similarly, high risk comes with high returns.

Investors, particularly novices, are often advised to adopt a particular investment strategy and diversify their portfolio. Diversification has the statistical effect of reducing overall risk.