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Forex Trading – Five Tips to Make Money Fast!
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Article
Forex Trading – Five Tips to Make Money
Fast!
This article is all about FOREX trading to make you rich
- and we’re going to give some alternatives to conventional
investment wisdom. Why? - Because most traders in FOREX follow
the norm and make average gains - while this article is about
making spectacular gains from FOREX Trading and making money
fast!
The Aim
Here we are going to assume you know how to trade, and you
have a methodology for FOREX trading you are happy with, and
can apply with discipline.
What we are going to show you here, is how to change your
system from making average gains, to making spectacular gains,
with simple changes in trade selection, money management, and
mindset.
FOREX trading offers the opportunity to make money fast
- so lets see how it can be done.
1. Accept Volatility and Risk Cheerfully
All good FOREX trading systems incorporate volatility.
You can't have a profitable FOREX trading method without
taking calculated risks, and taking losses - if you can’t accept
risk, then don’t trade.
Many traders back away from a market because it’s too risky
- however, risk also means reward! If you are a trader who doesn’t
like volatility, then go and find something else to do.
Drawdowns are part of trading; it’s volatile markets that
make FOREX trading fun and highly profitable.
To the well-informed FOREX trader, a drawdown is not something
to fear, but something to enjoy.
Remember: volatility = big opportunity!
2. Trade Infrequently
Many traders trade frequently and always like to be in the
market. They think that in FOREX trading if they are not in
the market, they will miss a move, or that by trading more frequently,
they will make money - wrong!
The big moves in FOREX trading, with the best risk to reward,
come a few times a year, and you should trade infrequently.
Focus on the trades that make the really big gains
3. Don’t Diversify
Diversification is an accepted wisdom, believed by most
investors in Forex trading, but it won’t make you money fast,
- it will do the exact opposite.
4. Money Management
So far, you may think that we are being a little rash, but
this is not the case.
We are focusing on the BIG opportunities that allow us to
make meaningful gains, and this is actually, where money management
becomes so important.
If you are taking risk, you need to control it - risk as
much as 10% per trade, but increase your chances of success
by:
1. Buying options at or in the money, to give you staying
power - and prevent yourself from getting stopped out.
Many traders lose, not because they were wrong in market
direction - they just were stopped out by a volatile counter
move - and options will give you staying power.
2. Many traders start trailing their stops to close, they
then get stopped out – but the trade runs on to make spectacular
gains. Don’t fall into this trap - keep your stop in its original
position - until the move is well in profit, before moving it
up.
You’re looking to make money fast, and you’re trading selectively
- so have the guts to go for a trade when it looks good - and
milk it for all it’s worth.
5. Understand the Power of Compound Growth
IN FOREX trading the way to make money fast, is to understand
the power of compound growth. For example, if you target 50%
a year in your trading, you can grow an initial $20,000 account,
to over a million dollars, in under 10 years.
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