There are a few ways to make money Trading Forex, I would like to focus on the process and steps worth considering. In the end I have seen complete Novice, 19 year old's place obscene bets and eventually work away with $250k on a single trade. I worked with 1 guy successfully earning 20k per month on Bond futures for a good 2 years, then had a 2 year losing streak, couldn't afford his prop desk fees, ended up broke. I guess the moral of the story is to quit when you are ahead. It is naive to think you could risk capital every day and one day not come tumbling down. Live by the sword die by the sword. Don't buy the hype but also don't sell the critics. The game is accessible to all.
Step 1 - Get some basic foundation (not just technical analysis). Think of it like a career. No one picks up scalpel and becomes a doctor in 2 days. It's hard work. It is not an easy way to make money because it appears to look like gambling.
Step 2 - Develop a process and system for e.g. I assess 3 things everyday, sentiment, volatility and Trade location. By assessing these you have a sense of risk. I trade cycles so my perception of risk may be different from you.
Step 3 - Learn to use different derivatives for e.g. I would trade Vanilla Options at some points in other cases I would look at correlated futures.
Not the stupid binary nonsense, rather real Option derivatives. There are times when volatility is low before the market breaks, in these situations you can't afford to be wrong, if you use a Stop loss order it could be triggered in the pending volatility that is so common these days. In that event I can put a naked option trade with a strike price to expire for example in 21 days. This means my loss is limited to my premium, with no risk to the position prior to expiry, I can avoid any unpleasant situations. I have seen some traders get chopped up trading the cash market at times when I have a smile on my face.
Step 4 - Get the appropriate tools and skills to analyse both technical and fundamental frameworks. E.g. My traders were long Yen the last quarter of 2015, we all made some good money. Fundamentally, the focus on Japan was never whether QE was working, Japan was never going to stop easing, been doing it since the 1980's, rather it was going to be based on whether the BoJ was going to continue monetary policy action. Kuroda said on several occasions that there will be no further policy action. This was a bullish sign with longterm consequences, secondly the US stock market was lacking in confidence, this always causes a flight to safety. The US stock markets are overrun by Japanese investors, with all those stocks being sold, Yen and Dollar were going to be the victors. Note, I have not even looked at a technical chart. It now became an issue of technically looking for currency that is overvalued against the Yen to sell and buy Yen. Sterling was that guy... This rest is anyone's imagination.
The point is, there is more to trading than just making money, like all things you have to love it. At age 16 I was sitting on my balcony discussing macroeconomics with people twice my age. So money for me is just the icing on the cake. Reality is I wouldn't do anything else. If you follow these steps from the start you will succeed. Good luck!
There are no such tips that you really need, its simple that you should have enough knowledge about forex and self-confidence and belief, as to jump in trading.
There are a few ways to make money Trading Forex, I would like to focus on the process and steps worth considering. In the end I have seen complete Novice, 19 year old's place obscene bets and eventually work away with $250k on a single trade. I worked with 1 guy successfully earning 20k per month on Bond futures for a good 2 years, then had a 2 year losing streak, couldn't afford his prop desk fees, ended up broke. I guess the moral of the story is to quit when you are ahead. It is naive to think you could risk capital every day and one day not come tumbling down. Live by the sword die by the sword. Don't buy the hype but also don't sell the critics. The game is accessible to all.
Step 1 - Get some basic foundation (not just technical analysis). Think of it like a career. No one picks up scalpel and becomes a doctor in 2 days. It's hard work. It is not an easy way to make money because it appears to look like gambling.
Step 2 - Develop a process and system for e.g. I assess 3 things everyday, sentiment, volatility and Trade location. By assessing these you have a sense of risk. I trade cycles so my perception of risk may be different from you.
Step 3 - Learn to use different derivatives for e.g. I would trade Vanilla Options at some points in other cases I would look at correlated futures.
Not the stupid binary nonsense, rather real Option derivatives. There are times when volatility is low before the market breaks, in these situations you can't afford to be wrong, if you use a Stop loss order it could be triggered in the pending volatility that is so common these days. In that event I can put a naked option trade with a strike price to expire for example in 21 days. This means my loss is limited to my premium, with no risk to the position prior to expiry, I can avoid any unpleasant situations. I have seen some traders get chopped up trading the cash market at times when I have a smile on my face.
Step 4 - Get the appropriate tools and skills to analyse both technical and fundamental frameworks. E.g. My traders were long Yen the last quarter of 2015, we all made some good money. Fundamentally, the focus on Japan was never whether QE was working, Japan was never going to stop easing, been doing it since the 1980's, rather it was going to be based on whether the BoJ was going to continue monetary policy action. Kuroda said on several occasions that there will be no further policy action. This was a bullish sign with longterm consequences, secondly the US stock market was lacking in confidence, this always causes a flight to safety. The US stock markets are overrun by Japanese investors, with all those stocks being sold, Yen and Dollar were going to be the victors. Note, I have not even looked at a technical chart. It now became an issue of technically looking for currency that is overvalued against the Yen to sell and buy Yen. Sterling was that guy... This rest is anyone's imagination.
The point is, there is more to trading than just making money, like all things you have to love it. At age 16 I was sitting on my balcony discussing macroeconomics with people twice my age. So money for me is just the icing on the cake. Reality is I wouldn't do anything else. If you follow these steps from the start you will succeed. Good luck!
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There are no such tips that you really need, its simple that you should have enough knowledge about forex and self-confidence and belief, as to jump in trading.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit