Making Money Trading Forex
What is profitable trading about? You see, successful profitable trading is all about the right time frame. Are you losing money? Yes you are! They say that 95% of traders lose money. The fact that you are reading this article means that you are still searching for a way to make money trading. At least you are not giving up yet. But will you eventually make money? There are over 25 ads for forex training just this week in local papers and TV ads in my neighborhood alone. I could not believe it. Statistics show that 95% of all traders lose money trading. It is the hardest business to succeed in, and yet there is an expert teacher/trader on every corner.
Why do YOU lose? You know why. Because the mortgage payment is due tomorrow, so is your credit card payment and maybe even alimony. Somehow you have convinced yourself that YOU can make money FAST by trading currencies and pay your bills tomorrow. A pip here and a pip there, a little bit of cheap spread, trailing stop and a nap and you made millions. So you hopped on the first forex website you could find. You opened an account and 15 minutes after funding it with your nest egg the entire $1000 is almost gone.
It was “make it or break it” for you. Someone smart once said something like this: “The way of thinking that created the problem can not be the same way of thinking to solve it”.
Markets don’t have a heart. Here is an old saying for you. Scared money does not make money. Here is another one. Trade with the trend. Here is even a better one. STAY AWAY FROM THE SMALL CHARTS. In fact, the GREATEST, BEST KEPT SECRET about trading is to trade in large time frames. Once you can get your head around the fact that you will NOT MAKE MILLIONS TODAY but will make money slowly, you just might start enjoying this little business of ours.
That is why you failed. You gambled when you were supposed to be running your own business. The fact remains that if you trade BIG CHARTS you will change your way of thinking and POSSIBLY MAYBE even make some money. Of course if I were you, I would get me some REAL Professional training first. Could you possibly start a car repair business tomorrow if you knew nothing about car repair? Come to think of it, perhaps you could, and that would explain a lot about why my car never runs AFTER the repair.
Believe it or not although a good technique has a lot to do with making money in trading, the most crucial element to success for a new trader is the trading time frame – which chart are you taking your trades in. I know you have been told that you can make money in 5 -10 -15 minute charts but you are being slightly misled. Although possible, it is not the easiest way, and definitely not for you until you get to an expert level. Those are the toughest time frames to trade in. Here is why.
Because there are at least 4-5 different market conditions throughout a trading day if you trade like that. They require completely different approach and some are not for trading at all. All of this thrown at you is like land mines on the road to ensure your failure.
These days thousands of new traders are opening trading accounts daily. There are more suckers everywhere. A simple risk disclosure statement that the broker is required by law to show you frees the broker from any liability from your losses. It has become like hunting for ducks and of course you are not the hunter. So don’t trade the small time frames. Trade like the pros, the secret is in the big charts. Why do they work? Because each 4 hr bar, for example, contains all the quirks and chaos of what happened in the 15 min increments and therefore what ever that last 4 hour bar looks like is probably the whole story.
You are trading on a scale of 3- 4 days and therefore a spike due to some economic news will not affect you as badly and since your stop loss will be much bigger pip wise (money wise still the same as you have adjusted your lot size to be smaller) and you will be well out of trouble and still in trade. Fluctuations of 50-60 pips will now start to mean nothing to you as you remain calm in pursuit of your first 500 pip trade. In fact it will also keep you away from the computer except for every 4 hours when you check up on your trade. This is necessary so that you do not mess with your trades. YOU happen to be the next biggest reason for your losses. But enough about you.
There is the light at the end of the tunnel. In case you ever wondered I want to make it clear to you – Yes you can make money trading and a lot of it and yes there are techniques that anyone can follow. Remember there are 25 experts in the paper this week. Hopefully at least one of those could do 5-6 profitable trades in a row. He’s the guy to talk to even if you have to pay him $10000 to teach you. Trust me, that pales in comparison to what you will lose without training.
Using the Mtpredictor’s technical analysis Elliot Wave Principle software, Bsmtprediction provides Forex Traders with FREE access to AUD/USD, EUR/GBP, GBP/USD, EUR/USD, NZD/USD, USD/CAD, USD/CHF, EUR/JPY, GBP/JPY & USD/JPY daily currency forecasts through this website. At Any Time / Any Day (we’ll straight away post the signals here in real-time if there’s any triggered) 1 hour, 4 hours & daily time frame forecasts are published on this site. The predictions are good from the moment they are published until either it reached the take profit target, hitted the stop loss or another new prediction of the same currency & timeframe unveils on the same / following day. Essentially, the prices shown are for an unknown period.. That’s why we encourage you to subscribe our FREE Google Groups newsletter to get the latest signal updates sent to your e-mail from the very 1st minute it surfaces the net..
References :
http://bsmtprediction.blogspot.com/
Well the simple answer is if ALL people are losing money than all you have to do is the opposite of whatever they are doing. If they buy….you sell. If they sell….you buy.
In reality ALL people do not lose money at Forex. I will however agree that MOST people lose money at Forex. I also have a feeling that MOST people lose money in options, futures and the stock market as well. Th real problems are human nature and human emeotions.
Without a specific trading plan and the discipline to stick to a plan you have no chance to succeed in Forex. Most people are controlled by fear and greed. How many times have you stayed in a trade too long because you were greedy and wanted more only to see the trade move further against you. How many times have you gotten out of a trade too soon because you were afraid that it woul move against you but as soon as you got out the market continued to generate profits that should have been yours.
So I guess to answer your question….yes there is a secret way to trade Forex. It is to have a solid trading plan, have the firm discipline to stick to the plan, always use a stop loss, always have a profit target, pay very close attention to your charts, keep fear and greed locked in a drawer somewhere………
Or setup a simple conservative hedge trade where you let the market do it’s thing. You don’t care because you can make money if the market goes up or down. You will get paid an interest payment everyday. And you only have to spend about 30 minutes a week to manage an account of any size.
I am simply amazed that more peolple do not use hedging strategies….the banks all do……and they are trading YOUR money!
References :
full time Forex investor and mentor
No real secrets. The facts are that amateurs can’t compete with the knowledge of professional Fx traders or with the resources they have at their command. It’s like a high school JV football team playing the Indianapolis Colts. Unless the entire Colts team comes down with an extremely bad case of the flu, they’re gonna win (and, even with the flu, they’ll still win if they can make it to the field).
Does that mean that it’s impossible for the "average joe" to make money in Fx. No, it’s not impossible. However it’s extremely unlikely and when it does happen, it’s usually due to a stroke of good luck.
References :
I managed a group of professional traders prior to retirement. They traded in various financial instruments, including Fx.
all people DONT lose when trading forex options. it is just another way to invest and trade albeit a very lucrative one. if you are not able to make money trading "long" in equities then the forex is NOT for you. If you have not traded equities before and someone has talked you into trading in the forex market then this is a sign that person is NOT a friend. They are either stupid or they are trying to seperate you from your money for some alternative reason.
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because it is practically a scam. They make money off all the idiots that think they can time the market and when they lose all of their money, they are afraid to say anything. But if they make money they tell everyone, so their idiot friends think that "if this idiot can make money, so can I".
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study somemore!
References :
Why all people lose money trading forex, is there any secret ways of trading?
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