You know that you can make BIG money in the Currency market (Forex) right?! So Why 49 of any 50 traders (98%) go BUST?
Here is a simple, risk free, 3 steps way to help you become 1 of the 2% that take money OUT of Forex.
Important clarification: This is not a “get rich fast” plan!!!
My goal here is to share how to become 1 of the 2% winners at Forex! Until you become one of the 2% do not (risk money or) try to make any money at all!
So what are the Currency market (Forex) basics are?
You can make insanely huge amount of money in Forex because:
- On every $1 you deposit you can trade up to $200.
- You can trade on each currency up or down. So theoretically each trade has 50% to make money.
- The Currency-Forex market is very liquid so most of the time you wont loose more then you specified with a stop-loss order.
- Globally $4 trillion worth traded each day. So no one trader or organization can really influence it.
- You can trade Online in real time, anytime, anywhere.
So WHY only 2% of traders make Money?? what’s stand between us and the money?
- Market Makers – Many of the broker companies (market makers) that manage our account trade against us!
- Experience & Practice - Learning Forex basics, trading techniques, and technical analysis, is fairly easy. but without practice it worth nothing.
- Relaying on common knowledge - Beware of relying on your Trading Techniques and Technical analysis!!! Your broker and the big firms give you the market data AND teach how to analyze it! Do the math! If you just follow your learning they will know what you are going to do!
- Relaying on paid knowledge- Paid: Trading robots, Signal services, guru analysis, market reviews, etc.. Are all just another way for the pros to get money from us. btw, even the services that worth paying are absolutely USELESS for beginners. (beginner=trader that doesn’t make money!).
- Professionals & firms- There are big firms with huge accounts that their trading strategy is to try and take our money. They statistics on the regular traders.
- lack of talent – Maybe Forex is not your thing. When is the time to say quit? Can you find out without giving money to the pros?
Wherever we find money, we would also find people and firms that would try to grab as much as they can of it. Wouldn’t we do the same?
It is obvious that if trading currencies would had been “fair” each trader would have almost 50% to find money in Forex. The statistics show that only 2% of traders make money.
And by that we are getting to:
How to get money out of Forex without risking money
Its not a magic formula, if you want to buy a worthless dream go to the pros!
I am going to describe here a simple way to level up the field for beginners
(don’t forget: beginner = trader that doesn’t make money!).
- Open at least two Forex demo accounts
Opening several demo accounts with different companies will give you:
- Access each company market data, learning material, signals, and forums.
- Find out which is more reliable.
- Test different trading strategies.
- Familiarize yourself with different trading interfaces.
I always keep one demo account for Betting, its keep me from betting in my other accounts!
If this is your first time with Forex, start with a betting demo account. It will help you to understand the trading basics and develop trading preferences that would help you in building trading system. And after two or more Busts in the demo account it will convince you that a money management is an absolutely MUST!
- Learn Forex:
There are several things that you need to know when trading:
- How to place different trade orders.
When you open your demo account the Forex company usually give you several tutorial videos on how to place the different trade orders.
- Forex fundamentals.
These are the underlying economics that control the Currency market (Forex). You should know how the news affect your trades.
- Technical analysis.
This is the art of looking at the price charts and try to guess what going to happen next.
- Money management.
This is probably the most important skill you have to learn to be a profitable trader. It is the only thing that protect you from unknown economical events, mistakes in analysis, and wrong news.Click here for Forex Tutorials resources.
- How to place different trade orders.
- Make a trading system.
Trading system is basically a very strict Money Management combined with your trading preferences. Again – I can not emphasize enough how important it is to have and test money management system before trading. I am going to add several articles on this issue.
You have to test your trading system! if an account go bust or the demo period has ended, send the broker an email and ask for demo extension. They will most probably grant it to you several times. and if they wont.. well there are a lot of brokers.
My rule of thumb of a successful Trading system is if you test it on a Forex demo account for at least 4 weeks and at least 50 trades and the evaluations are:
- Your account is profitable (it doesn’t matter how profitable).
- You didn’t lost more then 3% of your initial account balance on a single trade during this period.
- At no time your account fall below 85% of its initial balance.
If any of these is not true, rethink your system and try again!
One more thing, you need to be comfortable with your trading system. If you get sweaty thinking of taking it live, then you should test it for another period on a demo account, and then re-evaluate.
When you take it live. Try to make only $1 per week for 4-8 weeks, after you get to be 1 of the 2% winners you will know what to do next!
I had lost alot of money on Forex before I learned it all. In my humble opinion this is the only way for a beginner to have a real chance of making money in Forex.
Please share your thoughts!
Good luck and Please share your thoughts!