How to Make Money in Forex Currency Trading
To a newbie learning Online Forex currency trading, it looks straightforward in the beginning. Take currency pair EURUSD; for instance, if you bullish on Euro, simply place a Buy order. Bearish on EUR, just short it. So easy, you may ask? The truth about Forex currency trading is that it is a professional activity that not many traders will succeed. I will just go through a few very straight forward pointers on how to generate Forex pips consistently.
In the world of Forex currency trading, many newbie traders believe that Forex currency trading software or system that contains rocket science is more likely able to make money. It may be accurate, but how many of us will be able to find such a system or methodology? Why not just spend time and money to learn systems or trading methods that are simple but work?
In the Forex currency trading, the fact is simple systems just work best. Simple systems are more robust and more comfortable to trade as you understand the logic and can, therefore, follow it with confidence when you are in a losing streak. I feel that it is much simpler to trade with the trends rather than the ranging market.
For many successful traders, once they are happy with a system or methodology, they stick with it. Remember, you only make money trading Forex, and not having 100 systems or trading methodologies but trading none of them. In Forex currency trading, most traders succeeded primarily due to proper money management. So long as your system or trading methodologies have a positive profit factor coupled with appropriate money management, you will succeed in the long run.
However, for many Forex currency trading beginners, after many days and nights of learning and digesting Trading courses, purchasing various Trading Software and Trading System, you still find yourself with a massive hole in your initial capital.
As times go by, slowly, your dreams of financial freedom and success begin to fade. You will begin to ask yourself, are you a failure? Are you not intelligent enough to become a profitable Forex trader? After all, there are many successful Trading experts out there who are living their Online Money Making dreams.
Similar to Stock Trading or any form Investment Trading. You must ask yourself – what is your Online Forex currency trading style: news trading, swing trading, momentum trading, pattern trading and intraday or longer-term trading. It is alright to have a library of Trading style or setups, but most Money Making Foreign Currency traders do concentrate on a niche or particular Trading style. Learn to do one thing consistently well instead of trying to master too many trading methodologies. You have to pick a style that suits you.
Online Forex Currency Trading Plan
What is your Foreign Currency Trading plan? Before any trade entry, you have to ask yourself it this the right set up listing for your Trading style? Where is your exact Forex trade entry point? What is your trading stop-loss target? What is your trading profit target?
Anyone involves in foreign currency trading and not having a well-defined stop loss is going to have their entire online trading account wiped out before they even realized it. I knew someone did just that recently. You also need to know what your trading profit target point is.
Profit & Loss Plan
Lots of online trading beginners don’t realize the importance of reward to risk factors for every Forex currency trading trade. You will never make Money Online if you risk $500 but make $100.
Once you have written down a well-defined Online Trading, you must have the discipline to stick to it. All trading beginners must remember that discipline and money management are the two most important aspects of trading. Even the most exceptional trading system or methodologies will fail if you can’t stick to it. Click here to read more on how to start Forex trading practically.