Demo Trading

How to become a Profitable Trader in 2020?

When most people start trading Forex, they will jump into a search for a profitable forex trading strategy. They may have picked some strategy up from YouTube, forums, a Forex academy, books or wherever. However, strangely enough, after applying the strategy in live Forex markets with real money, it does not somehow make them profit,…

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Learn How to Read a Price Chart

Here is the fact: If you rely blindly on a simple trading strategy that you have learnt, and apply it every single time you see it occurring, the chances are you will end up losing more than you win. If it were that easy to succeed, then everyone would be rich. Anyone can learn a simple moving average crossover strategy, or a double top strategy. Yet if you enter a trade every single time you see a double top, I am certain you will end up losing more than you win overall.

So, what is the answer?

Learn to read the chart!

This is the first thing you should do as a new trader. When you learn how to read a price chart, you will become able to understand why the price is going up, down or sideways. Also, where the price is most likely to head to next.

For example, you see a double top set-up (telling you to sell), but if you read the chart, you can tell that the price is actually trying to break upwards. Therefore, instead of selling, you should be looking for opportunities to buy.

By learning how to read the chart, you can literally reduce your losses by half, because the next time you see a pattern that tells you to sell and, if through chart reading, you sense that the market is trying to head up, you can just skip the sell trade and avoid that loss. And even better, you can then apply the right buy strategy instead.

Use the Correct Risk per Trade

One of the reasons why people blow up their account when they first start trading is a result of using the wrong risk percentage per trade.

Right at the start, you should decide what percentage of your account you are going to risk per trade.

For example, say you have a $1,000 account, and you want to risk 100% per trade. What this means is that (in simple terms) if the trade you enter makes as profit equal to the amount you risked, you will have made 100% profit. So, your $1,000 capital becomes $2,000. Of course, if you lose that first trade, all your capital is gone.

As you can see, risking 100% per trade trade is akin to gambling. This is definitely not the way forward. The game behind the risk percentage is that if it is too big, it is too risky. Yet if it is too small, you might want to overtrade in order to compensate for the overall low return, which could be detrimental to your trading.

The trick is to risk a percentage which is low enough for you to not be afraid to trade, but yet at the same time be high enough to be meaningful to you as a gain. The textbook rule says this is something between 1% to 3% per trade, but of course, trading in real life is nothing like any textbook.

If you have capital of $1,000 and you risk 1% per trade, this means if you lose a trade you will lose $10. This is OK, but if you win, you win $10 as well, if your reward to risk ratio is 1:1. If you have a daily goal, e.g., $100 of profit per day, then you must make 10 winning trades to make that $100. The chances are, because you are forcing yourself to trade more, you will probably end up taking trades that you should not have taken.

So, the rule of the thumb is to consider your trading capital, what you will win per trade, and what you will lose on a trade, by various risk per trade percentages. Settle for what makes sense to you emotionally and is neither too small nor too large.

Apply a Good Reward to Risk Ratio

Why do some traders have more winning than losing trades yet make a net loss overall? It could boil down to them taking small wins but big losses. That does not make sense, does it? But it is often the truth you will see if you look at the trading history of many unprofitable traders.

This is where the importance of reward to risk ratio comes in.

What is a reward to risk ratio? Well, if your reward to risk ratio is 1:1, it means that the number of pips from your entry price to your stop loss is equivalent to the number of pips from your entry price to your take profit target.

If you have a win rate or 50%, and if your reward to risk ratio is 1:1, then, generally speaking, you are a breakeven trader.

However, if you have the same win rate of 50%, yet your reward to risk ratio is 2:1, then, even if you lose half and win half, you are a winning trader.

Here’s why:

If you have capital of $1,000, and your risk percentage per trade is 2%, you will risk $20 on your next trade. So, if you have a reward to risk ratio of 2:1, when you lose, you lose $20, but when you win, you win $40. See the first chart below where the risk is 30 pips and the reward is 60 pips for an illustrated example.

With a win rate of 50%, out of 20 trades, on average you lose 10. Losing $20 multiplied by 10 trades equals $200. However, you won 10 trades at $40, which means you made $400. So even if you won 10 and lost 10 trades, you have still made $200 in net profit.

Next time you trade, ask yourself, what is my reward to risk ratio on this trade?

Use a Proven Trading Strategy

If you are asking how to earn profit in forex trading, know that there is nothing more crucial to this than using a proven trading strategy.

What is a proven strategy? It is a strategy that not only works in the slides or screenshots that you have learnt from, but also one that has been proven to work in the past, year after year.

There will be years where the strategy makes you more money and years where it makes you less. That is normal in the Forex market. But it must be consistently profitable.

You cannot have a strategy that makes you money over one year but where you lose money the next year. You cannot rely on that strategy as you never know whether you are going to be profitable this year or not.

Why is having a proven trading strategy important?

Because there will be weeks where you find yourself losing. Yet if you know that your strategy will make you profitable at the end of each year, you can find the courage to persevere and keep going through the losing streaks.

If you do not understand this, then you will begin to doubt yourself, doubt the strategy, and may just give up, only to realise that had you continued following your trading plan until the end of the year, you would have been profitable.

Back Test, Back Test, Back Test

How do you know if the trading strategy you are using is a proven strategy?

You back test it.

If you are trading with the MetaTrader 4 trading platform, all you simply need to do is to scroll back in time to where you want to start the back test.

Next, press “F12” on your keyboard. This will allow you to go forward bar by bar every time you press the F12 button.

As you scroll through, each time you see the setup, record your wins and losses.

If you are profitable over one year, back test the second year, then the third.

If you are profitable for the last three years, you know you have got yourself a winning strategy.

When you back testing, you will see for yourself that losing streaks are natural and unavoidable. The key lesson is not to panic and not to let it affect your judgement when it happens.

Time Trade Entries Carefully

There might be a group of five traders who spot a similar setup, one that they have learned together from the same coach. However, out of the five traders who entered the trade, maybe only two have made money out from that trade, while the other three have made a loss.

Why?

Entry timing.

Trader A may enter later than Trader B on the same setup. And because Trader A entered later, the market retraces back a little to hit trader’s A stop loss only to come back in the intended direction and produce a winning trade.

This shows that even if the setup is the same, the timing of an entry is important. If you missed the boat to enter one candlestick ago and the trade has moved on, then skip that trade – do not chase it.

The entry timing not only affects where your stop loss placement is, it will also affect your reward to risk ratio and how close your take profit target is near to your entry level.

Use a Complete Trading Strategy

When people say that you need to have a trading system, what does this mean?

A proper trading system is not just having a good strategy. It is about the overall game plan and not being overly fixated on an individual trade.

It is about looking at the overall reward to risk ratio of all the trades you are taking. It is about looking at your risk percentage and your win rate.

All these factors will translate into your becoming either a winning trader or a losing trader.

A professional forex trader understands that the game is about more than just having a good strategy.

Keep your Emotions Under Control

Emotions are the number one killer in trading. In poker, there is a term called “tilt”. “Tilt” is when a poker player gets their emotions all messed up and starts playing differently (too aggressively) in an attempt to win back their money.

The same goes for trading, you do not want to be on “tilt” when you make losses. Losses happen and will always happen to some extent – this is part and parcel of trading.

There are many cases of people losing and starting to “revenge trade” as a result. They increase the size of the next trade to try to make up for the earlier loss (this is actually part of the “martingale” money management strategy). Usually, before you know it, the revenge trader has blown their entire trading account.

This phenomenon is a well-known aspect of trading psychology.

Remember to treat every trade as a new situation. There should not be any emotional baggage carried forward from one trade to the next.

If you made a loss on the last trade, you might get so demoralized that even when you see a good setup, you let your previous loss influence you and you do not feel confident in taking it – but for no good reason.

The same goes for being overconfident because you won your last trade. Or maybe you had three wins in a row, and you feel like you are unstoppable. When that happens and if you feel that you are on a winning streak you want to take any normal-looking trades even if they are not really part of your strategy or system. But because you feel unbeatable, you start to trade the trades you normally would not touch.

Keep your emotions in check all the time. Any time you feel that you are overconfident, overexcited, or demoralised – feeling the urge to revenge trade and be aggressive – STOP. Take a break until you feel that you have regained your composure.

Win Big, Lose Small

This should be your mantra in trading: win big, lose small.

Take a look at your trading history. Is your average win bigger than your average loss, or is it the other way around?

Think about it this way: if you win with a reward to risk ratio of 1:0.5 most of the time, then you will need two wins to cover one loss. You will need three wins to just be barely profitable.

Does this make sense?

If your trading record does not make sense, it is time to take a fresh look at your trading strategy, your risk-reward ratio, your win rate, etc., and then come up with a game plan designed to make you profitable, and then stick to it no matter what.

Final Thoughts

Trading is like a business. You may think that having a good product/service is enough. But then you realise you need to make your product known and available, plus all kind of other factors.

This is why every proper business has a CEO and a team below them. There are the salespeople, the marketing, the HR, the logistics, the accounting, etc. The CEO looks at the overall picture and steers the ship in the right direction.

The same goes for trading. You cannot just have a good strategy, or the best risk per trade.

You need to act like a CEO and look at every aspect of your trading, and make sure each factor sticks correctly to the overall trading system. Any time you feel that your emotions are not under control, then stop. Any time you feel that you have the urge to take a sub-optimal trade just because you want to trade without the discipline of your trading plan, stop. Any time you feel that you want to take your profit too early for a small win, stop.

Once you understand the game of trading, you will know when to trade, when to exit, and when to walk away from the table.

FAQs

How do you profit from Forex trading?

Learn chart reading, have a proven strategy, define your trading system (your game plan) and then stick to it. Once you have that, keep refining it until it is fine-tuned for maximum profit.

What is the average profit in Forex trading?

It depends on how many trading strategies you have and how many trades you take in a month. If you have one proven strategy and that strategy only has five trades a month, compared to a trader who has three proven strategies with 15 trades a month, then the trader with three strategies will make three times more than the first trader. It also depends on the risk per trade and the reward to risk ratio. Generally, an annual return of 20% or even more is quite possible.

Can you make a living from Forex trading?

The simple answer is yes. However, you will need to work hard to master all the trading techniques you will need to trade well enough to make a generally profitable return. Of course, much depends on how much capital you have.

Broker Reviews

Sollari Review – top 75 Broker ?

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Sollari Review

Sollari is a global forex and CFD broker with trading platforms that is suitable and fully functional for all devices.

This is a good option for all levels of traders, although the product portfolio is average, and there is an inactivity fee to be aware of.

Initially formulated in 2023 to provide a robust forex trading platform, Sollari offering to include CFDs, indices, shares, commodities, and cryptocurrencies.

Sollari has several trading tools and features designed to make your trading experience as smooth as possible. The trading platform, has been heralded as a simple and convenient platform without losing the functionality you would find at MetaTrader 4. Some education is also available through the trading platform, and highly responsive customer service is available 24 hours a day.

Please read my full Sollari review for further details of this forex broker so you can decide whether Sollari can meet your needs.

Who is Sollari?

Sollari is a global forex, spread betting, and CFD online broker. Sollari is an online Crypto and Forex Broker providing traders across the globe with cutting-edge technology to trade the world’s markets. In a continuous effort to give their traders a more comfortable and safe trading experience, their experts have been improving their service and solutions ensuring traders have the freedom to trade whenever and wherever they like.

They are headquartered in Kingstown, St Vincent and the Grenadines. with offices in Milan, Nassau, Sofia, and Luxembourg and are authorized and

Sollari product range overview

The product range at Sollari is average compared to other brokers. They offer a solid selection of currency pairs and CFDs, no futures CFDs, and an average number of commodity and stock index CFDs. additionally they do offer leverage trading on the main cryptocurrencies.

Sollari Range of Market

Forex trading

More than 50 Forex pairs are available at Sollari with no commission and some of the tightest spreads in the industry.

Indices and Financial Trading

Indices and financial CFDs have flexible margin requirements and low spread , representing some of the industry’s best spreads. There are no overnight or hidden fees of any description to worry about.

Commodities Trading

At Sollari, there are several commodity CFDs, including metals and energies.

Share CFDs Trading

Trade more than 100 company shares without ever owning the underlying security. At Sollari, you can access global stock exchanges with the option to go long and short and benefit from leverage. For non-leverage trading, there is zero commission.

Sollari Accounts

There are five trading account options at Sollari. Of note are the Professional Trading Account and the Islamic Trading Account. There is also a free demo account from where to practice your trading.

Free Demo Account
You can select from the free demo account which platform you would like to practice trading on their trading platform. You will immediately receive $100,000 of virtual funds, which can be used to familiarise yourself with the financial markets and forex and CFD trading.

Islamic Account
This is a Shariah-compliant Islamic account which includes many features that are in keeping with Sharia law.

See here the overview of all the accounts.

	BASIC ACCOUNT	STANDARD ACCOUNT	GOLD ACCOUNT	PRO ACCOUNT	VIP ACCOUNT
MINIMUM DEPOSIT	$5,000	$10,000	$25,000	$100,000	$250,000+
ORDER EXECUTION	Instant	Instant	Instant	Instant	Instant
ACCOUNT CURRENCY	USD, EUR, GBP	USD, EUR, GBP	USD, EUR, GBP	USD, EUR, GBP	USD, EUR, GBP
ACCOUNT MANAGER	yes	yes	yes	yes	yes
SPREAD, PIPS	Fixed	Fixed	Fixed & Floating, Variable	Fixed & Floating, Variable	Fixed & Floating, Variable
QUOTATION (NUMBER OF MARKS AFTER POINT)	5 marks	5 marks	5 marks	5 marks	5 marks
LEVERAGE	100	100	200	500	500
MAX. TRADE SIZE	10 lots	20 lots	40 lots	50 lots	100 lots
REQUOTES	None	None	None	None	None
MARGIN CALL LEVEL	40%	40%	40%	40%	40%
STOP OUT LEVEL	30%	30%	30%	30%	30%
TRADING PLATFORM	all devices	all devices	all devices	all devices	all devices
CUSTOMER SUPPORT	24/5 support	24/5 support	24/5 support	24/5 support	24/7 support

Sollari Trading Platform

Sollari provides a web, desktop, and mobile trading platform on their trading platform, which is provided by the High-tech software provider “easytech”.

This trading platform has an excellent reputation among traders.

Sollari Trading Platform

web trading platform

The web platform allows you to place trades directly from your web browser in an easy-to-use interface that is customisable and available in several languages. The web trading platform falls short because of its lack of social trading; however, it is well-designed with several useful features.

There is a two-step login for additional security, and you can search for an asset using its name or by category. Order types include:

I was impressed with both the portfolio and fee reports which were comprehensive and easy to use, with clear information on commission, swap fees, and performance.

There are also the following useful features available on the trading platform:

Trailing stop

Trailing the position of a current price can then trigger a stop order as the price reaches a predetermined distance from a stop order. It works similarly to a stop order but in a more controlled way that aligns with movements in the market.

Market Sentiment

This allows you to closely monitor movements in the market using data from other traders concerning a specific instrument.

Hedging

This allows you to mitigate risks by investing in the same product in a different direction.

Charts

Real-time charts provide up-to-the-moment information, including historical trends, forecasts, and current trends.

Sollari mobile trading platform

The mobile trading platform is in keeping with the web trading platform, with much of the same functionality.

The actual design is well laid out and easy to use with customizability. I found the mobile app fast with personalised watch lists and the ability to open positions directly from real-time charts.

There are price alerts that include statistical alerts, which can be monthly or yearly for currency pairs, indices, etc. Clicking on the alert will automatically open the app on the instrument.

Sollari desktop trading platform

Use the desktop platform. This platform is designed with professional traders in mind, leaving the webtrader as an alternative for beginners and intermediate traders.

There is excellent customizability, some good search functions, and a choice of several languages.

There are several tools and technical indicators designed to enhance your trading activity.

Sollari customer service review

Customer service is excellent at Sollari, with immediate response times across multiple channels.

There are several channels for contacting customer support, including phone and email. When I tested their service, my query was dealt with immediately without even the intervention of a chatbot. The service provided via email and phone was similar, with fast, relevant responses to my queries. Customer service is provided 24/5, which is above average.

Sollari is opening an account.

The account opening process is straightforward, fully digital and quick. You will need your ID.

To open your account, you should first decide on the account type you wish to open

Then you can follow these quick and easy steps:

Select your country of residence
Add personal information, including name and email address
Choose a password
Enter your home address and tax residency
Complete some simple questions relating to your trading experience
Fill in information pertaining to your personal finances, such as income and savings and employment status
Select your base currency
Upload your ID documentation and proof of address, such as a utility bill or bank statement.

Sollari Deposit and Withdrawal

Deposits and withdrawals and essentially free, and the minimum deposit is high compared to what you would find at other brokers.

Before making your first deposit, you will need to choose between the following base currencies:

EUR, USD, GBP

Deposit options include:

Bank transfer
Credit and debit card
Cryptocurrency

The minimum deposit is $5000, which is high compared to other brokers. There are no fees should you choose to deposit via bank transfer from your bank account.

Bank transfers take several business days.

Withdrawals can be made using the same methods accepted for deposits, and there are no withdrawal fees for electronic wallets and credit/debit cards.

Sollari safety

Sollari is not regulated by the Financial Conduct Authority (FCA) but is performing full due diligence to comply with AML regulations.

In addition, all client funds are held in segregated bank accounts to protect those funds should Sollari go bust.

The Sollari negative balance protection protects client funds should their balance go negative.

Sollari fees

Sollari has low CFD and forex fees and average non-trading fees.

Fees can be separated into two main categories for a CFD and forex broker: trading and non-trading fees.

Trading fees

The trading fees will vary depending on the financial instruments you are trading within each asset class. Trading fees can be charged as a spread, a commission, or a financing rate.

Spreads differ between the bid and ask price for a foreign currency price. Here’s how Sollari spreads compare against some other forex brokers:

Non-trading fees

Sollari has low non-trading fees as they do not charge deposit and withdrawal fees, and there is no account fee.

Inactivity fees are charged. There are inactivity fees to be aware of. However, these will only kick in once your account has been inactive for several months and you have a positive balance.

Who is Sollari suitable for?

Sollari is suitable for all levels of traders looking for a solid trading platform and very competitive spreads.

The selection of account types is aimed at both retail and professional investors.

Demo Trading

The Advantages and Negatives of Forex Demo Trading

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Intro to Fx Demo Trading

Despite the placement as the planets greatest monetary market, the forex marketplace only became easily available to retail traders in latest years because of the introduction of sites based trading via on-line forex brokers.

Aspiring forex investors can right now make use of digital trading systems – like the extremely well-known MetaTrader software program
(offered as a free of charge download by MetaQuotes Software program Company ) to access the large forex market thou they might trade only in very small amounts themselves

The majority of on the web brokers will support MetaTrader and could also provide their own proprietary platforms or web-centred dealing interfaces.

These types of systems typically enable traders to do a quick overview of the currency marketplace and maybe carry out some specialized evaluation, in addition to permitting them to gain access to trading necessities like purchase access and deal delivery for a wide selection of foreign currency pairs.

free of charge fx practice account

Like a common way of motivating forex investors to use their offer setup solutions and first deposit funds with them to make use of as trading accounts perimeter, many online forex brokers will offer a free of charge fx practice account to potential or existing clients.

Referred to as a forex demonstration accounts, such unsecured debts enable a trader to encounter a hands-on demo of what seems prefer to trade currency pairs in the forex market with this broker without placing any actual money at risk.

Although using a FX trading demo account has several benefits for traders, some tricks are well worth talking about because the technicians of getting into a demonstration operate and the producing emotional responses an investor can possess while controlling it can differ significantly from the encounter of live forex trading utilizing their personal hard-attained money.

Additional common demonstration accounts circumstances which make them vary considerably from an actual cash financed account include broker-imposed period limitations and set debris of virtual foreign currency.

The subsequent areas of this content will talk about starting up an on the web trading demo accounts, in addition to probably the most significant benefits and negatives of using a demonstration forex account in comparison to utilizing a live fx accounts for trading foreign currencies.

Starting Up a Free of charge Forex Demonstration Account
Simply about any trustworthy fx broker will allow potential and current customers to open up up a demo account with them free of charge to enable investors to practice currency trading using digital money.

Demo accounts traders frequently also get access to at least a few of the broker’s customer providers and consumer support personnel to ensure that they can obtain a much better feeling for what coping with the broker will end up being like when they determine to finance a trading account with genuine cash.

Investors desperate to open up a demonstration trading accounts can typically get around to the site of one or even more forex demonstration brokers and adhere to guidelines shown there for opening up a demo or practise account with the brokers they select.

Selecting the greatest fx demo accounts for your requirements might require critiquing those provided by a number of online brokers with different features in order to make an knowledgeable decision which broker is the best partner for your start.

When starting a demonstration account, you may even require to choose a quantity of virtual money to fund the demonstration accounts with and get into some personal data to determine yourself with.

In case you feel worried about offering your true personal data to a broker you are will to try not really you have more freedom as no documentation is required for this in general, the moment you open a real account your KYC documentation will be needed for compliance and this protects the broker as well as the traders from money laundering and fraud.

You can also open up a new e-mail account to get communications about the demo forex account if you are concerned about getting your personal email address offered to third celebrations like digital email entrepreneurs.

Pros of Forex Demonstration Trading Demo_trading_advantages

The two beginner and experienced forex investors regularly make use of demo accounts to rehearse trading currencies and check out a fresh broker or trading strategy.

Some of the more common advantages of interesting in forex demo trading consist of the following:

Observe if You Like Trading Foreign currencies

Those fresh to trading foreign currencies or trading generally can use an fx demo accounts to find if they are psychologically and psychologically appropriate to the bustle of trading forex. Everyone is usually different, and some people might actually appreciate trading currencies, as the activity might not match others’ preferences, personas or lifestyles at all.

Operate Forex without Risk Whilst Learning or teaching how to trade

– Beginners who are still learning how to operate foreign currencies frequently experience substantially even more assured putting their real cash in danger in the marketplace if they have an opportunity to try points away from 1st. A demo account allows them to place their training into practice in a near to actual existence environment without placing their genuine money at risk. This enables those to make common beginner’s mistakes while they find out without needing to spend for the effects out with their very own bank.

Practice Great Cash Administration Methods –

One of the secrets to taking pleasure in long-term success when trading forex requires learning to apply well-established cash administration concepts. A demonstration accounts allows a brand-new or skilled trader to practice such methods completely on true exchange rate actions and see on their own how the common benefits accumulate to their demo account in digital money earnings.

Find out to Control Your Feelings When Trading –

Probably the most difficult elements of trading for many people consists of learning how to control their psychological reactions to earning and shedding deals in such a method that it stimulates overall success. Dealing properly with normally regular mental replies to producing and losing cash – such as dread, avarice and wish – can often differentiate the effective fx investor from the loss.

Check a fresh Trading Technique Without Jeopardizing Actual Money –

Smart experienced traders and beginners as well will generally wish to check the achievement of any new trading technique they arrive plan before applying it in a live trading environment. This kind of enables them to accustom themselves to pursuing the program and also to function out any insects in it that may become obvious while using it as real exchange price movements happen.

Try Out a New Broker’s Trading System –

Unless you are utilizing the Mt4 system that a great deal of on-line forex brokers support, you will most likely want to make use of a demonstration accounts to observe whether a fresh fx broker’s private internet or client structured trading platform is usually ideal for your trading requirements.

Examine if a Fresh Broker Offers Useful Features and Solutions –

Fx Brokers keen to possess you open up a live trading account with them will frequently provide demonstration investors gain access to their unique customer features, educational and information services, and customer support departments. This can be a great method to examine your quality of the broker’s general solutions before carrying out any actual trading money to ensure they are the type of trading partner you will need keeping your accounts.

Broker news

Donald Trump blasts ‘fools’ who oppose good Russian ties

US President-elect Donald Trump has posted a progression of tweets censuring the individuals who contradict great relations with Russia as “‘dumb’ individuals, or nitwits”.

Mr Trump promised to work with Russia “to comprehend a portion of the numerous… squeezing issues and issues of the WORLD!”

His remarks came after an insight report said Russia’s leader had attempted to help a Trump race triumph.

Mr Trump said Democrats were to be faulted for “gross carelessness” in permitting their servers to be hacked.

In a progression of tweets on Saturday, Mr Trump said that having a decent association with Russia was “no terrible thing” and that “lone “idiotic” individuals, or simpletons, would believe that it is awful!”

He included that Russia would regard the US increasingly when he was president