Can I Really Make More in the Forex Trading?
One common question among aspiring Forex traders is whether they can really make more in Forex Trading. Well, the short and precise answer is yes. The longer answer is still yes, but you have to do things consistently right. Forex Trading is not a ‘get rich quick and easy’ trick. To even earn a dime from this trade and avoid going bankrupt (which can happen within a day by the way) you have to possess the following;
- Necessary trading skills
- Realistic expectation
- The right attitude
It’s easier said than done, but it’s very possible. All you need to do is learn ways and tricks to become a consistent profitable trader. What you should keep in mind, however, is a good trader does lose and earn profit regularly. Losing money should be part of trading.
Here’s What You Can Do to Make More in Forex Trading
- Learn a trading strategy
Earning in Forex Trading requires you to learn and adopt a definite strategy. Yes, there’s no wrong or right way of trading but learning what strategy works for which market or currency can draw a line between a successful and unsuccessful trader. For instance, you can find a trading strategy that will bare more fruits when tried out with a certain currency in a particular market while another strategy works for exact pair of currency but in a different way.
- Stay updated on the Forex world news
Information is power, keeping yourself informed will help you make sober analysis. You should also learn how to read charts so that technical analysis can be an easy task for you.
- Invest wisely
After understanding the basics of how Forex market works, learn how to limit the amount of trading. Ideally, your leveraging amount should not exceed 20% of the entire amount you’ve set aside for trading. Only trade an amount you are ready to lose without affecting your normal living status and finally, you need to have another source income to cater for your monthly bills.
- Master your emotions
This is the most important factor that will determine how much more or less you can make from Forex Trading. You should make sure that you’re in total conscious control of all the interactions. Never act on impulse. Most traders get driven by emotions and end up losing huge amount of money.
- Understand factors that drive different currencies
There are different factors that influence currency for instance political changes or even policy decisions. Understanding these factors will keep you ahead and help you make vital and smarter decisions.
- Before you start trading with real money, create a strategy using a demo account
it’s okay, to be afraid of losing, but ‘scared money never makes money’. Learn how to trade with a demo account then wait for an opportunity to present its self. Work on your confidence and once you feel ready, you can either start trading solo or trade under a broker (recommended for beginners)
Some Crucial Mistakes You can Avoid in Order to Make More in Forex Trading
Do not trade without a stop loss
Stop loss refers to an offsetting order which gets you out of the trading market once the prices goes against you exceeding an amount you’ve specified. This prevents you from losing money beyond what you can afford. You should have a stop loss for each day you intend to trade.
Never Move a stop loss
Moving a stop loss order is as bad as trading without one. Many times traders are tempted to move the stop loss in a desperate attempt to regain the lost money. They keep hoping that the market direction will change. The direction can change yes, but for how long? What if the losses would still be too huge to recover from? Moving a stop loss indicates lack of discipline in trading and opens up doors for even more losses.
Never anticipate for news release
Scheduled economic news makes the price to make drastic changes. Usually in that moment when the market is volatile ask and bid price is usually higher than usual and sometimes it’s hard to find liquidity to take you off your position with your preferred price. This however doesn’t mean you shouldn’t keep-up with recent news.
Avoid taking multiple correlated trade
Diversification is great but can work against you in Forex Trading. If you are to take multiple day trade at once, make sure each of the trades move independently and is not affected by the other.
Avoid bending your strategy
Sometimes the market gets friendly and chasing money can take toll on you. You should however avoid over-trading and stick to your strategy because you have no control over the market. Don’t change time frame just because market condition has changed. You could lose a lot by diverting from your plan.
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