How to Make the Right Forex Trading Profit?

The key word is actually simple; think realistically.

If a novice Forex trader intends to place a position on the Forex market, he must first know the potential losses against the risk. In other words, he must regulate how big the risk vs. ratio is. the reward.
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Use Risk vs. Ratio Reward to adjust the level of trading risk.

Instead of glaring at the chart constantly, there is a better method for arranging the position to close automatically based on the calculation of the risk vs. ratio. reward.
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Basically, the ratio of risk vs. reward is a comparison of how much risk will be borne to reach the profit target. Technically, this can be done by adjusting the location of Stop Loss and Take Profit.


Budi has an initial capital of USD 2,000. He wants to generate Forex trading profits of USD 100 by opening only one position on a standard account.

The first step, he opens a position with a trading volume of 0.1. Why is that small? Because with a lot as much as one tenth, it needs a movement of 100 pips to bear the loss or receive a profit of USD 100. The point is, with small lots the risk is easier to bear.

Next, Budi determines a risk and reward ratio of 1: 1. That means later he will give the Stop Loss and Take Profit distance equal to the entry position. So, if he targets to generate Forex trading profits of USD 100, Stop Loss and Take Profit will be equally installed as far as 100 pips from the initial position.

stop loss and take profit are installed 100 pips from the entry