While my blog may be called Forex Made Easy, making
money in forex is not always easy. Before we delve into
figuring out this whole Forex business (and it is a
business), I thought I'd share some simple yet important
tips. I will be going back to this
periodically because they're important not just because
you're learning to trade 4x but because they are good sound
principles to live by.|
If you've been around any length of time, you've heard or read how the basketfuls of money we can make from Forex Trading (or FX Trading), so what are the tips and rules and strategies we can incorporate to make money from 4X Trading? Below are the seven tips for trading Forex that the management of Forex Made Easy (me) came up with to help make you USD, Euro, Yen in this crazy and rewarding field.
Tip #1: Don't get greedy
This is embarrassingly simple. When you're on a sizzling hot winning streak, it's easy to think that you can't lose, but it is the kind of thinking that is very dangerous. Trading is relatively easy, but you can lose your shirt, your pants, and your precious bank account in short order too. Greed can consume you and deplete your trading account faster than you can say "but they didn't teach me that in the Forex Made Easy blog!" Greed can devastate.
Tip #2: Get Educated
Making money in Forex does not take the talents of a brain surgeon. Who says you have to be a market genius to make money? Any body can learn to trade, and any person can make money. You don't need to spend a lot of time getting educated, but a trader with real world experience trading has a lot going for him.
Tip #3: The Best Proven Systems are Simple
This forex tip is perhaps the most difficult to conquer because we like gadgets and systems and indicators and tools. Use the KISS method: Keep it Simple Stupid. The phrase is completely overused but it fits. Keep it simple, use a few indicators, and support and resistance. Don't get complicated. Simple trading "systems" are far more robust than complicated ones.
Tip #4: Make Sure You Have Risk and Money Management Rules
This Forex Made Easy piece of advice is incredibly boring. Success in the FX market is built on risk management and money. Ten percent should be the maximum amount you risk on any one trade. Five percent or less is much better.
Tip #5: Discipline - Set the Rules and Stick to Them
No matter how good of a trader you think you are (and you're probably not all that...sorry), you will pile up losses. Even after you search the Forex Made Easy site for nuggets of insight and wisdom, you will still need disciple. So, let me repeat that, you will have losses; you will lose occasionally. But you need to have discipline to ride out the losses and come back. Know YOUR rules. Stick to them. Keep your emotions in check when trading. Leave nothing up to your emotions. Write your instructions down and follow them. I can't emphasize this point enough, because if you don't follow what you created when there was no pressure at all, then you probably will lose money.
Tip #6: Have Fun
Forex Trading can be challenging and rewarding. It can also be very exciting. Don't take your losses or your gains so seriously. Don't spend all day on the computer monitoring the markets. Relax. Get outside. Spend time with your family. The markets will be there tomorrow.
Tip #7: Paper Trade Until You "Make Money"
Practice Practice Practice. There are software programs out there (and some that we at Forex Made Easy will recommend) to help you so that you won't lose money quickly. You can test strategies, theories, and win a million dollars - all with no money changing hands! You need to do this.
We at Forex Made Easy believe that anyone can make money trading Forex. Anyone. The effort you need to put in (with the help of the Forex Made Easy blog) will be well rewarded. So don't forget the rule that simplicity rules. Simple, steady, and well executed strategies will make you the a lot of money from Trading 4X. That's the Forex Made Easy way.
Mr. Chan Boldene is a freelance technical writer and has written numerous articles on the Forex markets. Join him at Forex Tips for a few key pointers.