How to profit Forex trading
But to be able to get the key we have to learn a lot and practice directly about the forex market analysis to determine whether the key price movements of the currency pair are currently rising (uptrend) or down (downtrend). And to do this we need a lot of practice and courage to make decisions, for example whether to open a position by buying or closing a position by selling, and vice versa.
Above is the movement of the USD / CAD currency pair with an uptrend or upward direction. If our position is against the direction of movement, we will suffer losses. Take for example, we open an Open position Sell USD / CAD 1.4450 with a volume of 10000 (10K) and close the Close Buy position of USD / CAD 1.4550 it will suffer a loss of $ 100 with the calculation details of each increase or decrease of 1 pip will reduce or increase capital by $ 0.1 for 1K volume. If we have a volume of 10K then 1 pip is equal to $ 1. Because we lose 100 pips (1.4550 – 1.4450) then we will lose $ 100 (100 pips multiplied by $ 1).
The illustration above is how we will suffer losses if against the direction of movement of the USD / CAD currency pair. And here is how to get forex trading profit by following the direction of movement of the rising USD / CAD currency pair (uptrend).
Because the market direction is an uptrend then we open a position by buying Open Buy USD / CAD 1.4450 with a volume of 10000 (10K) and closing the Close sell position Sell USD / CAD 1.4550 it will get a profit of $ 100 with a profit calculation of 100 pips (1.4550 – 1.4450) and 1 pip equals $ 1 per 10K then we will profit by $ 100 (100 pips multiplied by $ 1).
So when the direction of market movement is an uptrend, follow it by opening a buy position, Open Buy and closing a sell position, Close Sell .
What if the direction of movement of the USD / CAD currency pair is a downtrend of how to calculate the profit of forex trading? then the calculation is the same when the direction of the USD / CAD currency movement is an uptrend like the illustration above only that the action we are doing is the opposite of the uptrend position that is opening a sell position Open Sell and closing the Close Buy position .
If in the direction of the uptrend we take the example of the movement of the USD / CAD currency pair then for this downtrend we take the example of the movement of the AUD / USD currency pair in the Day to Week time frame as shown in the picture above.
When you are against a downtrend by opening an Open position Buy AUD / USD 0.7300 10K volume and close a Close position Sell AUD / USD 0.7000 then you will suffer a loss of $ 300 (1 pip = $ 0.1 per 1K).
But if you follow the direction of market movements by opening an Open position Sell AUD / USD 0.7300 volume 10K and close the Close position Buy AUD / USD 0.7000 then you will get a profit of $ 300 (1 pip = $ 0.1 per 1K).
Now, now that you know how to get profit from forex trading, now is the right time to start forex trading to get lots of profits.