Although there are lots of rumors and speculations around the foreign exchange market, it is quite easy to make money on the Forex market. The minimum set of a successful trader is not that big. It includes, of course, a trading strategy. The most suitable strategy for you can be found on the Internet or create yourself. In addition, you will need a reasonable management of capital, the right amount of investment, adequate risk management, and, of course, patience and the desire to become a successful currency trader.
Let’s, for example, discuss the simplest trading strategy – this is the trend trade strategy 10-20 EMA.
On any chart of your trading platform, you can add 2 moving averages: 10-day and 20-day. For you, a signal to buy will be the situation when the 10-day moving average from the bottom to the top crosses the 20-day moving average. And if the intersection occurs in the opposite direction, then you should sell.
Will this strategy make money on Forex? It’s hard to say, if years through 5, then maybe yes. And can you make big money with this trading strategy? Our answer is unlikely. The market can not always be in a trend, because it is changeable, by its nature. Even if you yourself just watch the market, then you will soon see.
This strategy, like any other, has its undeniable advantages. First, from a technical point of view, it is very simple and even an inexperienced beginner trader will understand it. Secondly, from the point of view of implementation, it is also very simple. Thirdly, it takes very little time to implement it – it will be enough and 10 minutes a day. In addition, it can be safely used if you adhere to the 1% rule, that is, that in one transaction you can not risk more than 1% of your capital. This strategy can bring tremendous profits on the trends, the main thing is not to miss the moment.
It would be dishonest not to mention the disadvantages of this trading strategy. But do not judge strictly, because there are disadvantages to all. Since this strategy is very simple and involves trading at the intersections of moving averages, it, in fact, does not have a distinctive feature, because to trade at the intersection can, in fact, everything. If you decide to trade this strategy, then have patience, because to earn a round sum you will have to trade for years. Many traders break and change the trading strategy half way, as this is rather monotonous and in practice many opportunities for its improvement become noticeable.
You probably wonder why, if in trade everything is like two and two, do so many traders lose all their invested capital? And the answer is simple – it’s greed and inconsistency. They want everything at once, but this does not happen! If you do not want to invest your time and effort, do not want to learn, then trading in the Forex market is probably not for you. Like any other sphere, currency trading involves constant hard work.
In this article, we have gathered for you the best expert advice on how to increase your capital, or how to make money in the Forex market.
Tip # 1
The Forex market has long been an example of the tremendous use of all the most effective marketing tricks. There is no such thing in the stock market. And in the foreign exchange market, various advertisements and billboards entice potential traders, promising them fabulous incomes with minimal effort. Naturally, they do not talk about the risks. A novice traders this whole, alas, believe, and then severely disappointed.
Excessive expectations of profits divorce the trader from reality and, in addition, are morally oppressed by him, forcing to make hasty trading decisions, forgetting the rules. In the foreign exchange market, self-discipline and adherence to rules that have saved more than one currency account is of great importance for success.
Still do not know how to make money in the Forex market? Are you ready to read piles of literature on the analysis of the foreign exchange market, to study methods of its forecasting and to constantly practice, practice, and practice again? Are you ready to work hard and wait patiently for a suitable opportunity, according to your trading plan? If yes, then you have very high chances of success in the foreign exchange market!
Tip # 2
To earn on Forex – means to focus your attention not on the speed of the transaction, but on the result. After all, only those who reach the finish line can win the race. As the statistics show, among those traders who suffered losses in trade, most of those who stopped halfway.
To earn on Forex means to understand those processes that occur in the national economies of currencies that you are trading with. This also means that you must feel the impending financial collapse before the whole world speaks of them. The foreign exchange market is only 20% full with individual traders, the rest are institutional traders. It is in their hands and turns the lion’s share of capital, and they create the main “weather” in the Forex market
To make it clearer, here are some figures. If you follow the 1% rule, then if you lose 1000 positions in a row, you will lose all your capital. But at the same time, following the same rule, you will need to win only 50 transactions in order to double your original capital.
Do you understand everything? Super! Thus, in just 10 years, for example, by investing now $ 1000, you can become a millionaire.
Tip # 3
Be prepared for the fact that the trade will not always go as smoothly as you would like it to be. You will understand how to earn money on the Forex market in the process of trading. Tolerate against obstacles, believe in yourself and look forward confidently. The only way to success are professionals!
And finally, all people make mistakes, and you will have them too. Accept this as a reality. You do not have to blame yourself for a few mistakes. Of course, they need to be analyzed, they need to be studied, but do it calmly, without unnecessary emotions. Remember that no one can guarantee a 100% success. Try to eliminate fear and all negative emotions from your trade. Fresh head and sober sanity – that’s what you need. The foreign exchange market is an inexhaustible opportunity for good incomes. A good example is General Motors. She published a financial report three years ago, in which it was obvious that in that year on currency speculation they earned more profit than from their main activity – car sales. Smart people! Take an example from them!