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How To Make Money And Succeed In Forex Trading

How To Make Money And Succeed In Forex Trading

How To Make Money And Succeed In Forex Trading

To a newbie learning Online Forex Trading, it looks very simple in the beginning. Take currency pair EURUSD for instance, if you bullish on Euro, simply place a Buy order. Bearish on EUR, just short it. So easy, you may ask? The truth about Forex Trading is that it is a professional activity that not many traders will succeed.
I will just go through a few very straight forward pointers on how to consistently generate Forex pips.
In the world of Forex currency trading, many newbie traders believe that Forex trading software or system that contains rocket science is more likely able to make money. It may be true, but how many of us will be able to find such a system or methodology? Why not just spend time and money to learn systems or trading methods that are simple but works?
In the Forex currency trading, the fact is simple systems just work best. Simple systems are more robust and easier to trade as you understand the logic and can therefore follow it with confidence when you are in a losing streak.
I personally feel that it is much simpler to trade with the trends rather than the ranging market.
For many successful traders, once they are happy with a system or methodology, they stick with it. Remember, you only make money trading Forex, and not having 100 systems or trading methodologies but trading none of them.
In Forex trading, most traders succeeded primarily due to good money management. So long as your system or trading methodologies has a positive profit factor coupled with proper money management, you will succeed in the long run.
However, for many Forex Trading beginners, after many days and nights of learning and digesting Forex Trading courses, purchasing of various Forex Trading Software and Forex Trading System, you still find yourself with a huge hole in your initial capital.
As times go by, slowly, your dreams of financial freedom and success begin to fade. You will begin to ask yourself, are you a failure? Are you not intelligent enough to become a profitable Forex trader? After all, there are many successful Forex Trading experts out there who are living their Online Money Making dreams....
So the Money Making Online million dollar question - Are you cut out to be a profitable Forex Currency Trading trader? Yes, you can become a profitable Forex Trading Trader! You just need to treat Online Forex Trading like running a Successful Online Money Making Business.
Forex Trading Style
Similar to Stock Trading or any form Investment Trading. You must ask yourself - what is your Online Forex Trading style - news Forex Trading, swing Forex Trading, momentum Forex Trading, pattern Forex Trading and intraday or longer term Forex Trading? It is alright to have a "library" of Forex Trading style or setups, but most Money Making Foreign Currency trader does is to concentrate on a niche or particular Forex Trading style. Learn to do one thing consistently well instead of trying to master too many trading methodologies. You have to pick a style that suits you.
Online Forex Trading Plan
What is your Foreign Currency Trading plan? Before any trade entry, you have to ask yourself it this the right Set Up entry for your Forex Trading style? Where is your exact Forex Currency trade entry point? What are you Forex Trading Stop Loss target? What is your Forex Trading profit target?
Anyone involves in Foreign Currency Trading and not having a well defined stop loss is going to have their entire Online Forex Trading account wipe out before they even realized it. I knew someone did just that recently. A US$10,000 account was wiped out within a week without Stop Loss trading a few currency pairs. You also need to know what your Forex Trading profit target point is. What is the point of having an Online Money Making Forex Trading trade but your Forex Trading Account does not Make Money. For one simple reason, you didn't take the money from your Forex trade and market reversal against you.
Forex Trading Profit & Loss Plan
Lots of Online Forex Trading beginners don't realized the important of reward to risk factor for every Forex Trading trade. You will never Make Money Online if you risk $500 but make $100.
Follow your Well-Defined Forex Trading Plan
Once you have written down a well-defined Online Forex Trading, you must have the Discipline to stick to it. All Forex Trading beginners must remember that Discipline and Money Management are the two most import aspects of Forex Trading. Even the greatest Forex Trading System or methodologies will fail if you can't stick to it.

Currency Trading Profits - A Simple System Making Millions

Currency Trading Profits - A Simple System Making Millions

Here we will reveal a system for currency trading profits, which has a logic that is so simple, ANY trader will see why it works, and why it will continue to work, as well as how they could be making big currency trading profits too!
If you use this system in currency trading, you will have the potential to catch EVERY major currency trend.
We have all heard this investment wisdom: "To make money buy low sell high"
However there is a better way to make big currency trading profits and the wisdom here is: "Buy high and sell higher"
This will become clear with some explanation:
Ignore Traditional Investment Wisdom if you want the Big Profits!
If you want to "buy low and sell high" you have to guess where a market is going to bottom and this is not easy. You are trying to PREDICT where a trend might start - this very often means the market goes lower and you lose.
Investors and traders are taught to "buy low and sell high" but when a huge move starts they watch and wait for the pullback - it never comes, the market simply goes higher, and they never get in.
The problem with this traditional investment wisdom is you end up trying to pick market bottoms, and try to get in on pullbacks, but when a market trades higher quickly, you miss the move.
This sees traders lose on trying to pick bottoms - they don't make the profits they could have made from the big moves.
Breakout Systems are the Best for Catching the Big Profits
A breakout system does not try to predict a market bottom - it waits for CONFIRMATION.
It will wait for a market to break above a recent high, (resistance) or break below a market low, (support) if these levels are broken, a move will start, and astute traders ONLY trade the break - they don't try to predict.
You can make big profits on these breaks - look at any currency you like: Japanese yen, Swiss Franc, British Pound, etc. and you will see huge moves from breakouts.
The Best Risk Reward
The breakout point provides the best risk to reward, to enter the trade.
Why? Lets take a hypothetical example:
The British Pound has traded up and tested resistance at 1.85 several times, and is currently trading at 1.70. The market rapidly trades up to 1.85, and immediately breaks to the upside, and quickly goes to 1.95
What has Actually Happened?
When the critical 1.85 area gives way, traders with stops on their short positions, start to cover, and new traders enter the long side of the trade. This causes a huge surge in price - as the area of resistance is so important.
If you are positioned to get in as the breakout occurs, your risk is low, and reward high.
Many traders don't want to do this - they feel they are "chasing" the move, and want a pullback - it never comes, and they miss the big profits.
Keep in mind the old saying:
"A trend in motion is more likely to continue than reverse"
Check Your Charts
Most of the big currency moves in history have started with breakouts on the chart, then a huge quick move to the upside - with no PULLBACK
Big Currency Trading Profits can be yours!
Here we have looked at the concept, and why it's successful, and you can see how uncomfortable it is to do - and that's exactly the reason it's so profitable!
Breakout Trading is Simple
All you need to use to trade breakouts, are traditional charts - and have some confirmation signals, to help you filter "true" from "false" breakouts - such indicators as RSI and Bollinger bands, are examples.
Astute traders are making huge profits every day from this simple method and you can too.



shoof
كاتب المقالة
writer and blogger, founder of shoof .

جديد قسم : forextrading