What is the best strategy to make SMALL amount of money constantly, with minimal risk?… If by “constantly” you mean a strategy that only produces winning trades, there is no such thing.
Think of trading in terms of probabilities. You can have a strategy that gives you an “edge”, puts the odds more in your favor, but you will still incur losses.
Think of it this way…
You have a container with 500 marbles in it. 350 of them are red and 150 of them are white. Clearly you have a greater chance of randomly picking out a red marble over a white one. However, you cannot accurately predict which color you will choose next. Over time you WILL end up with more red ones. But along the way, you have no way of knowing what the outcome of the next selection (trade) will be.
Once you land on a strategy that suits you (how much time you have each day to trade, risk tolerance, available trading capital, time of day, etc.) execute the strategy faithfully and always employ solid money management principles.
Become a Profitable Forex Trader
Do what it takes to become a profitable Forex trader. Winning traders all basically do the same things.
- They have a trading plan in place-they trade with strict rules which they never deviate from
- They keep a trading journal to record trade information so they can review it and make improvements in their strategy.
- They keep abreast of world financial news which affects the currencies of the countries whose currency pairs they trade.
- They continue to learn and improve their strategy and system always making refinements even small ones which over time add up to better results.
- They focus on risk management and proper execution and not profits.
- The keep their emotions like fear and greed in check and never break their rules because of their trading results.
- They study the habits of Market Makers and Banks and other traders to figure out who is winning consistently and why and who is losing consistently and why.
- They trade on their own information/analysis using their own strategy and they never rely on the opinion of others.
- They keep their losses small and hold their winners as long as possible to maximize their equity curve.
That is the best way to put the trading odds in your favor and limit your downside.