Make Currency Trading Profits
Currency Trading Profits, Most traders lose at currency trading but currency trading success is open to all, if you have the right plan. In this article I want to look at 6 points that if you learn them, will allow you to get on the road to currency trading success.
In past articles, I have covered the obvious ones such as – don’t trust cheap computer software or any self proclaimed expert who tells you making money is as easy, because it isn’t. To win, you need to learn to trade yourself and rely on your own skills and here, I will cover some essentials you need to be aware of before you start to trade.
Once you have your strategy and have confidence in it, you need to make a plan of action and this should include, a target growth for the year so much should this be?
I think if a novice trader can make anywhere between 50 – 100 percent then there doing well and up there with the best traders so your looking at about 5% per month. Some months will be losers though and you will tend to find, most of your trading profits come on 2 or 3 months in any yearly period.
Before you trade, you need to understand that executing a trading plan is the hard part of Forex trading, as you will have to cope with your emotions. You are going to have losses so how to you make them less painful?
The first point to keep in mind is just take them quickly and understand that you will lose at least 50% of the time so just get used to it and if there taken quickly that’s just fine and the market is not personal sure it will give you losses but it will also give you profits.
Read up some books on the great traders and they will all tell you, the above is the key to long term success and if they do it you need to do it too.
Another key point to keep in mind is not to trade too be tempted to trade to much. I know a lot of traders who can go weeks on end, without trading because their waiting for the right opportunity. If you are out the market your money is safe when you enter it, its at risk so you only want to have it in the market when you have the best chance of making money.
The final point to keep in mind is to always FEAR the market. The market is not personal by nature but its all powerful and can hurt you, if you don’t abide by its rules.
In conclusion, trading currencies is a bit like being the captain of a boat at sea. The captain of a boat, will respect and fear the sea but he knows, that if he has the right training it can make him money. Its the same when being a Forex trader, you can make money from the market but if you don’t abide by its rules and accept its all powerful it will destroy your equity.
If you approach Forex trading with the right attitude and you have done your homework, you can make you a great part time income.
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Here we are going to show you how to make bigger currency trading profits, by showing you how a group of ordinary people, with no experience of Forex, learned to trade in 14 days and went on to make millions in profits; so how did they do it? Lets take a look in more detail.
Richard Dennis wanted to show that anyone with the right education could make money trading and he therefore set out to prove the point in a famous experiment. The objective was to get a group of people who had never traded, teach them in 14 days and see how they performed after this trading education with real money accounts.
The group consisted of both sexes and varying levels of academic achievement and the people chosen included – a boy who had just left high school, a female accountant, a security guard and an actor – so the group was a broad cross section of people. They were given a system to learn and 2 weeks later told to start trading it, they then went on to make hundreds of millions in profit. So Dennis had proved that anyone could learn to trade and trading was a totally teachable skill.
So what can you learn from the traders Dennis taught?
I am not going to say you will make millions but the basics they learned, all successful traders do and the real lessons you can learn in terms of currency trading profits are outlined below.
– If you want to win your system should be simple and despite many claiming complicated systems work better they don’t and the reason why you should keep your system simple is because it will have fewer elements to break than one cluttered with to many rules.
– Money management rules need to be objective and followed with rigid discipline! Most traders fail to keep losses small and take losses but if you don’t do this you will lose. The system not only had stops but also allocation of equity per trade rules and volatility rules and any system that makes money is based on sound objective money management and yours must be too.
– The percentage of trades you win in relation to the amount you lose is irrelevant, only your average profit v average loss is. There is a myth you can win 90% of the time which is laughable, the best traders win maybe 30 – 50% of their trades but they make huge gains because they run profits and cut losses and that’s why the system had such strict money management rules.
-To win you must stick with your system and trade it as the rules are laid down and not deviate from it, because if you do – you don’t have a system! The traders actually found learning the rules of the system easy but found following them the hard part. Anyone who thinks discipline is easy has never traded when money is on the line, your emotions come to the fore and its vital you don’t let them dictate your trading.
The above story shows that it’s possible to learn trading quickly and also to make a lot of money. If you have a willingness to learn and you adopt a disciplined mindset Forex trading success can be yours. I found this story inspired me to trade and I hope it gives you the confidence to try and become a currency trader too.