Introduction – What makes trading so elusive?
There are lots of opinions on the subject of making money online, but most of them are impractical in the real world for some people. This impracticality is caused by the indifference of human nature, indifference’s of vocabulary by profession and community.
This simply means that if you were to tell a mathematician about forex, he would probably respond back with formulas and equations (you know how geeks are:-]).
Another example is professionals in the health sector industry, they speak about patients and medicine. Professionals in the financial industry speak about profit targets, asset management, and all the other stuff.
The point I’m making here is that the main reason you don’t know how to make money trading forex is that you are a doctor, teacher or nurse and you have not found time to learn about Forex because what you’re doing now is profitable and it keeps you busy.
My goal on this post is to share with you guys a smart and easy way of making money investing in the foreign exchange market. Pressing emphasis on the need to acquire a business mentality and willingness to grow professionally.
I believe that after reading this guide you will know exactly how to make money trading in Forex without any highly dignified experience.
Key Topics Covered
- The starter principles
- How to avoid losing money
- The truth of how money is made
- Alternative Services for fresh traders
- The business mentality trick
- The quickest way to get started
The starter Principles:
Do some research – learn before you start
The majority of learning for forex traders comes from experience and live to trade. To be a complete professional, a trader needs to learn everything possible about the forex market, paying close attention to the geopolitical and economic factors that affect a trader preferred currencies. Research is a continuous effort as traders need to consistently adapt in changing market conditions, regulations and global events.
AFF LINK: Trader From Joburg Success Stroy
Find yourself a reputable Forex broker
The forex industry is more crowded compared to its counterparties. This makes it possible to end up getting poor service from brokerage firms. Due to common concerns about the safety of funds and withdrawals, traders should open accounts with brokers that are regulated by high authority regulators such as the National Futures Association (FCA). Further research may be undertaken by traders on spreads, accounts offer as well as leverage, funding and withdrawal policies.
Use a demo account
Almost all trading platforms come equipped with a demo account. This type of account allows traders to engage with the platform with an ability to make transactions using simulated money while experiencing the same market feeds as with traders with live accounts. The most important benefit of a practice account is that it allows a trader to be adept at order entry techniques.
Keep charts clean
Just after the trader has opened an account, it is often tempting to use all the indicators offered by the platform. Many technical indicators may be well suited for the trading process, it is important to always remember that analysis is sharper and effective when kept simple. Any technical indicator that is not used should be removed from the chart.
Protect your trading account
The most appealing focus when trading is making money but it is very important to learn ways to avoid losing money and learning how retail forex broker’s work. It is reasonable to wonder why many people believe forex is perfect for making them rich quick, while the majority is not getting rich quick and those who eventually do get rich quick are ridiculously few. The hint is in the business model of retail brokers with their huge leverage offerings.
Rumors are that more than 90% of retail traders are losing money long run all over the world. The huge increase of retail brokerage firms proves that the industry is highly competitive amongst brokers alone, they offer competitive leverage raging around 1:100 to 1:1000.
The FXCM report conducted in 2015 suggested that in that period, consistently profitable accounts were the ones using 1:5 to 1:25 leverage, which is extremely low compared to the maximum leverage offered by the brokerage.
The marketing strategy of retail forex brokers is focused on attracting traders with minimum experience and deposits less than $1000, these are the type of traders who actually feel like they need 1:100 up to 1:1000 leverage to boost their capital, and there are millions of them.
Replace “huge leverage” offered by brokers with “gambling” and traders using huge leverage with “gamblers”. The broker is the house “Las Vegas”, now that’s when it all makes perfect sense. The broker baits you into using huge leverage, note that this action will turn you to a forex gambler. Gamblers are the biggest money losers in the world, protect your account by all means.
Start small when going live
Immediately after you are confident around the demo and have the strategy and plan in place, it’s time to go live-that is trading with real money at stake. After all practice trading cannot exactly simulate real trading, therefore, it is important to start small to protect your confidence and carefully building it.
Keep good records
Use a trading journal to effectively learn from both losses and successes involved in active trading. Keeping records of every sessions activity: Dates, instruments traded, profits, losses, and most importantly the trader’s own performance and emotions is incredibly beneficial to growing as a successful trader.
Treat trading as serious business
It is a necessity to treat trading as a business and appreciate the professional belief which implies that individual trade wins and losses are less important in the short run: It is the performance of the business long run that matters. Therefore personal emotions during trading sessions don’t matter, whether they are good or bad they should be treated as just one of those days in the office.
How to avoid losing money
- Be well researched and well prepared
- Practice patience and the discipline to research, organize and execute
- Implement sound money management technique
- Treat trading as a business
The truth of how money is made
There are two people involved in each currency transaction the buyer and the seller. The buyer expects prices to rise after his entry price and the seller expects prices to fall after his entry price.
Only one out of the two traders is entitled to a profit, money lost by the losing trader is gained by the trader he purchased from. Imagine a smart man whose intention of making money is greater than anything in the world, he intentionally deposits say $300 only to donate it in multiple stranger’s accounts around the globe through the platform.
This actually happens a lot in the trading business, for a professional this is good news as it ensures market trends will always be the same making it possible to build a stable business around it.
Alternative services for fresh traders
Services exist due to high demand by professionals on industries other than the financial. income boost has become a significant necessity for all of us regardless of home country.
In the retail Forex exchange industry, it is not necessary to overstress the process of learning because there are legitimate services that allow traders to be investors while learning to trade.
Trading is about capturing pips (points) and investing is about letting someone else catch them for you (as a service). The best services at the moment for retail clients are:
- CMIRROR: A professional trader mirroring service coded and managed by spotware
- MIRROR TRADER: A trade copying service offered by tradency.com
- Copy KAt platform sponsored by CMTrading
AFF LINK: JOIN CMTRADING
The main benefit of the above-mentioned platforms is that they allow 100% transparency for investors. This means that before you decide to invest, you have the freedom to view an choose a reputable trader to copy trades from. I find the tips in this post very useful and hope you have gained something. Don’t forget that our portal is dedicated to providing you with trading systems and mt4 indicators so that your forex endeavors can be a success.