The currency market is a wild and unpredictable place, and that’s reflected in the volatility and chaos that can occur at any time. If you’re interested in learning more about forex trading and want to make a living from it, then this is a must read.
My first experience with forex trading was a disaster. I had $10,000 in a brokerage account and I thought I could easily become a millionaire within a few months.
It was a huge mistake. I learned the hard way how important it is to invest small amounts of money at a time, and to never put all my eggs in one basket.
Now, what if I told you that you could make money in the Forex market? Of course, the answer would be an emphatic “No!” Yet, what if I told you that you could make a fortune by following the strategies I teach?
I’m happy to report that I’ve seen plenty of success stories using my system. In fact, I’m confident that the methods I share with you here will help you to make a profit from the FX market and many other markets.
1. Learn the Importance of Being Able to Make Money
You might think that forex trading is all about making money. Well, it is, but it’s also about losing money too. The reason for this is simple: most forex trading is done on margin. When you buy a currency pair, you are borrowing money to do so. The price of the currency pair will move against you as a result.
The best way to trade is to find a way to make money in all types of markets.
That means that you should know how to trade Forex, and also be able to trade commodities, stocks, bonds and options.
The currency market is the biggest and most liquid market in the world. But it’s not the only one you should be trading.
2. Never Put All Your Eggs in One Basket
When I started out, I was so excited about making money that I ignored some important advice. I had my broker’s brokerage account at a major bank. The bank was always selling me financial products like interest-bearing accounts, money market funds and certificates of deposit. They were all great products, but none of them made any sense for a beginner forex trader. Why? Because they were all based on your net worth.
It’s easy to get carried away with your enthusiasm when you first start trading, and think that you can make it big by trading the currency market.
But you shouldn’t do it!
When I started trading, I was trading the currency market and making a fortune. But I was doing so with a small amount of money. I was using a lot of leverage, and my profits were quickly wiped out by losses.
3. Be Prepared for the Worst Case Scenario
When I started trading, I didn’t understand what “margin calls” were. I thought that I would have to give up all my capital if the price of a currency pair moved against me too far. I wasn’t prepared for this possibility.
And I lost a lot of money as a result. If you’re not ready to lose your entire investment, then you should never trade. If you do trade, you should always have cash available to meet your margin calls.
If you’re going to make money trading Forex, you need to be prepared for the worst case scenario. When I started trading, I thought that I would be able to trade the market without any problems. I was sure that I could get my money back before any losses occurred.
Unfortunately, it didn’t work out that way.
It took me about a year to realize that I couldn’t trade without making some serious losses. It was a painful experience that I’ll never forget.
4. Know What You Are Doing Is Risky
I can’t tell you how many times I have seen beginner traders get excited about the potential profits of the currency market. They think that they can make easy money by trading a few pairs of currencies.
But the fact is that they are trading on margin. They think that it’s safe because they’re buying at 1 pip or 2 pips. But when you use leverage, it doesn’t matter if you’re losing 1 or 2 pips in every trade.
When you are new to Forex, you don’t know what you are doing. So, you can’t really decide whether you’re ready to risk your money on the currency market. This is a mistake!
Don’t make the mistake of thinking that you can trade successfully with a small amount of money. If you do, you will lose your entire investment.
You should only trade with money that you can afford to lose.
5. It’s All About Time
Management The truth is that I have never made any money trading Forex. I have lost more money than I have made, and I still do it. I am not a day trader. I am a swing trader. I make my trades when there is an opportunity to make money. I don’t wait for the perfect entry or exit. I don’t care if a currency pair is trending or not.
Forex trading requires patience. It’s not a get-rich-quick scheme. You need to be prepared to work hard for the long-term. But it’s not easy to become a successful trader.
If you want to become a successful Forex trader, you need to develop time management skills. You can’t trade every day.
In my experience, it’s better to trade every two days rather than every day.
6. Be Realistic
About Your Trading Goals I’ve lost my entire investment on several occasions. I have never made any money trading Forex. I was always a day trader, and I thought that I could make a fortune by trading the currency market. But I didn’t understand what margin calls were. I thought that I could get my money back before any losses occurred.
The Bottom Line
Trading Forex is not easy. It takes time and hard work to be successful in this market. It’s a mistake to think that you can trade successfully with a small amount of money. It’s best to start out with a small amount of money and to make your trades when there are opportunities to make money.