7 tips to Make Money Trading Forex Online
Make Money Trading Forex Online – 7 Tips to keep Forex Trading Profitable
Over the years, Make Money Trading Forex Online has been gaining popularity amongst retail Forex traders because it is easily tradable on online market. The availability of substantial leverage also makes it relatively easy for retail traders to start trading with small capitals. However, with leverage trading, capital can also be lost very quickly. Here are some suggestions in which you can follow to avoid losing your capital and make money in forex.
Is it Possible to make money Trading Forex ?
The answer depends on you, Internet is full of Forex Winning Trade example therefore we do not need to bull about it. Trainer Binni Ong from Singapore has 7 Forex Golden Tips to keep Forex trading profitable, to give you an ideal on how to become Forex Trader and start your journey to freedom.
1. Learn Forex Trading – attend a Forex course
It may be easy to open an account and start trading but it is not as easy to earn money without first learning how to trade. Without being properly educated on how to trade effectively, you will not only be frustrated but you will be losing capital and optimism quickly.
Find a reputable Forex trading school. There are many scams promising big returns in a short period of time. Don’t fall for these scams. A good school does not promise fast money but provides knowledge on how one can trade independently with technical analysis and trading strategies. They should also provide follow on support.
Tips: Trial offers insights into a Forex school training philosophy. To know how we train and our principles towards learning Forex trading, take our complimentary “Advance Forex Course”. Since it’s complimentary at the moment (FREE), there is no risk for this action.
2. Practice Demo Forex Trading
A demo account is like a practice account with a “demo” amount of capital. No capital is required to trade on a demo account. It is available on most trading platforms to allow traders to be accustomed to the trading interface. If you are new to trading, it is useful to get yourself used to placing orders on dummy trades.
3. Starting Small when you trade Forex
No amount of practice trading on a demo account can simulate the psychology of trading with real money, so you should eventually trade on a live account. However, Forex trading is much faster and more complex than buying equities. Trade planning, trade execution and mastery of your emotions require experience and practice. A new trader should start by trading with small positions while honing his/her skills without risking the entire trading account in the process.
Tips: With leverage and margin, you could really start small. For example, to trade a micro lot ($1000 worth of contract value), you need a margin of $10 (on a 100 times leverage). Every pip movement will be $0.01. You are still trading with real money. You are trading in a realistic environment. However, by starting small, any setback is not damaging to your account.
Tips: Start our complimentary Advance Forex Course to understand more about leverage and margin.
4. Keep it Simple – Price is the best indication
Technical analysis is not rocket science. When we are bargain hunting for anything, we always hunt for the cheapest price available and similarly when we plan to sell something, we hope to sell it at the highest price. Trading utilizes the same concept, buying low and selling high. Most institutional traders do not have charts littered with complicated indicators. They identify critical price levels and execute their buy or sell close to these levels.
Tips: Many beginner Forex traders will start with too many things on their chart. Not only will these indicators clutter what is truly true (which is price action), it will also make one immobilize.
5. Keep Charts Clean – Keep your mind clear too
There are many indicators available in a trading platform. Avoid cluttering your charts with too many indicators as they may end up confusing you with opposing signals. A cluttered chart also makes it difficult to observe price action at critical levels of support and resistance. In addition, choice of colour scheme, types of price bars etc should be easy on the eyes and allows you to analyse price movements more effectively.
6. Trade Management
While the excitement is always about finding trades to enter, making money in Forex also involves good management of your trades. Part of it is to accept stop losses and not hold on to a trade beyond it. When possible, shift to protective stop loss to limit losses. Profits should also be protected by taking profits at strong levels and utilizing trailing stops to preserve winnings of remaining positions whilst allowing it room to grow.
Trade within your stipulated risk exposure per week. Do not overtrade. Any trade has a possibility of turning sour, if you trade beyond your exposure limit, you will bankrupt your account very quickly.
Tips: This is probably the most important tip after all!
7. Keeping a Trading Journal
Part of effective learning is to keep a journal of both loss making and profitable trades. It should include:
- A Screen capture of the chart of each trade indicating where the trade was taken and reasons for the execution.
- A record of profit/loss
- Your note on your performance and emotions.
This should be periodically reviewed so as to minimize the chances of committing the same mistakes.
Forex trading is like a business. It needs to be planned, executed and managed, in order to yield profits. Try not to be too emotional about wins or losses. Be methodical and focus on making it successful. As the saying goes “Rome was not built overnight”, so it takes time to hone the skills and accumulate the experience be a profitable Forex trader. Plan, set realistic goals, be organized and most importantly learn from both successes and failures. Tenacity and diligence is what makes an endeavour successful.
To your trading success,