8 Best Principles to Make Money in Forex Fast
There are many opinions on the subject of making money investing in forex today, but most of them are not possible in real-world situations especially for investors without enough capital.
This impracticality is caused by the fact that we as humans have different activities, conditions, and even lifestyles that are totally different.
This simply means that if you were to tell a mathematician about forex, he would probably respond back with formulas and equations.
Another example is professionals in the health sector industry, they speak about patients and medicine. Professionals in the financial industry speak about profit targets, asset management, and so on.
The point I’m making here is that the main reason you don’t know how to make money trading forex is that you are a doctor, a teacher, a policeman, a nurse, etc.
and you have not found time to learn about Forex because what you’re doing now is probably demanding too much of your time.
You’re still smart, missing other professions in life because you had to choose one is not a bad thing, it happens to everybody.
The good news is that you wouldn’t even need to know how to trade Forex to make money.
My goal in this post is to share with you smart and easy principles of making money investing in the foreign exchange market.
Pressing emphasis on the need for you to acquire a business mentality and willingness to grow professionally. You should be willing to adapt too.
I believe that after reading this guide you will know exactly what to do to make money in Forex without any highly extended experience.
- The starter principles
- How to avoid losing money
- The truth of how money is made
- Alternative Services for fresh traders
1) The starter Principles: George Soros
Principle One: Do some research for learning before you start
The majority of learning for forex traders comes from demo experience and life experience. To be a complete professional, you need to learn everything possible about the forex market, paying close attention to the geopolitical and economic factors that affect a trader’s preferred currencies.
Research is a continuous effort as you need to consistently adapt to changing market conditions, regulations, and global events.
Principle Two: Find yourself a reputable Forex broker
The forex industry is more crowded compared to its counterparties. This makes it possible to end up getting poor service from brokerage firms.
Due to common concerns about the safety of funds and withdrawals, you should open accounts with brokers that are regulated by high authority regulators such as the National Futures Association (FCA).
Ensure that you pay attention to spreads, the account offers as well as leverage, funding, and withdrawal policies.
Principle Three: Use a demo account
Almost all trading platforms come equipped with a demo account. This type of account allows you to engage with the platform with the ability to make transactions using simulated money while experiencing the same market feeds as George Soros as he trades his billions live.
The most important benefit of a practice account is that it trains you to be adept at order entry techniques.
Principle Four: Keep charts clean
Just after you have opened the account, it is going to be tempting to use all the indicators offered by the platform.
Many technical indicators may be well suited for the trading process, it is important to always remember that analysis is sharper and more effective when kept simple.
Any technical indicator that is not used should be removed from the chart.
Principle Five: Protect your trading account
The most appealing focus when trading is making money but it is very important to learn ways to avoid losing money and learn how retail forex brokers work.
It is reasonable to wonder why many people believe forex is perfect for making them rich quickly, while the majority is not getting rich quickly.
The problem is that those who eventually do get rich quickly are ridiculously few.
Pay attention to the business model of retail brokers with their huge leverage offerings.
Rumors are that more than 90% of retail traders are losing money long run all over the world.
The huge increase in retail brokerage firms proves that the industry is highly competitive amongst brokers alone, they offer competitive leverage ranging from around 1:100 to 1:1000.
FXCM report conducted in 2015 suggested that in that period, consistently profitable accounts were the ones using 1:5 to 1:25 leverage, which is extremely low compared to the maximum leverage offered by the brokerage.
The marketing strategy of retail forex brokers is focused on attracting traders with minimum experience and deposits of less than $1000, these are the type of traders who actually feel like they need 1:100 up to 1:1000 leverage to boost their capital, and there are millions of them.
Replace “huge leverage” offered by brokers with “gambling” and traders using huge leverage with “gamblers”. The broker is the house “Las Vegas”, now that’s when it all makes perfect sense.
The broker baits you into using huge leverage, note that this action will turn you to a forex gambler. Gamblers are the biggest money losers in the world, protect your account by all means.
Principle Six: Start small when going live
Immediately after you are confident about the demo and have the strategy and plan in place, it’s time to go live-that is trading with real money at stake.
After all practice trading cannot exactly simulate real trading, therefore, it is important to start small to protect your confidence and carefully build it.
Principle Seven: Keep good records
Use a trading journal to effectively learn from both losses and successes involved in active trading. Keeping records of every session activity: Dates, instruments traded, profits, losses, and most importantly the trader’s own performance and emotions is incredibly beneficial to growing as a successful trader.
Principle Eight: Treat trading as serious business
It is a necessity to treat trading as a business and appreciates the professional belief which implies that individual trade wins and losses are less important in the short run: It is the performance of the business long run that matters.
Therefore personal emotions during trading sessions don’t matter, whether they are good or bad they should be treated as just one of those days in the office.
2) How to avoid losing money investing in Forex
- Be well-researched and well prepared
- Practice patience and the discipline to research, organize and execute
- Implement sound money management technique
- Treat trading as a business
3) The truth of how money is made
There are two people involved in each currency transaction the buyer and the seller. The buyer expects prices to rise after his entry price and the seller expects prices to fall after his entry price.
Only one out of the two traders is entitled to a profit, money lost by the losing trader is gained by the trader he purchased from.
Imagine a smart man whose intention of making money is greater than anything in the world, he intentionally deposits say $300 only to donate it to multiple strangers’ accounts around the globe through the platform.
This actually happens a lot in the trading business, for a professional this is good news as it ensures market trends will always be the same making it possible to build a stable business around it.
4) Alternative services for fresh traders
Services exist due to high demand by professionals in industries. income boost has become a significant necessity for all of us regardless of country differences.
In the retail Forex exchange industry, it is not necessary to overstress the process of learning because there are legitimate services that allow traders to be investors while learning to trade.
Trading is about capturing pips (points) and investing is about letting someone else catch them for you (as a service). The best services at the moment for retail clients are:
The main benefit of the above-mentioned platforms allows 100% transparency for investors.
This means that before you decide to invest, you have the freedom to view and choose a reputable service provider to help you make money.
I find the tips in this post very useful and hope you have gained something. Be informed that our portal is dedicated to providing you with trading systems and mt4 indicators as insurance for your success.