Forex Trading & Tips To Wealth

By: Sacha Tarkovsky

Forex trading looks easy yet few succeed and it's a fact over 90% of traders lose.

Some of the forex tips we are going to give you are not seen as conventional wisdom but as the bulk of traders lose that's no bad thing!

Here are your tips for making money fast in forex trading.

1.Get a simple method you understand

If you trade you need a method that will enable you to liquidate losing trades quickly and run the big profitable trades.

Regardless of whether you buy a system from a vendor or build your own, you must understand the logic of how and why it works.

This will give you confidence.

From confidence you get discipline that will enable you to follow your trading method through inevitable periods of losses.

If you don't have discipline to stick with your method you have no method!

2. Use a technical method

The best way to trade is to use a long term technical trend following system.

Forget day trading.

All short term volatility is random and you have no reliable data to work with and will get killed.

I read about how day trading is a low risk way to trade, but there is simply no better way to lose your money.

Ever seen a day trader with a real time track record of profits?

Neither have I - It's the dumbest way to trade, so don't do it.

The big profits come from the big trends and they are the ones you should focus on.

3. Trade independently

Don't give advice and don't seek advice.

Also, avoid reading the papers, listening to news or experts spout on about where currencies are going.

There more often than not wrong and are simply interested in a good story.

Listening to a good story won't make you money.

4. Be patient

Don't try and trade all the time .

There is no correlation between how often you trade and how much money you will make.

You get rewarded for being right not how often you try!

5. Money management

Set your stop when you enter a trade.

Do NOT try and trial stops too quickly to lock in profits.

If you are trading longer term moves you need to have your stop far enough back to take into account volatility.

Most traders are so obsessed with locking in profits they end up never following the big moves to their full potential.

Taking small losses requires discipline, but so to does accepting big gains and taking swings against you in the short term while you hold on for the bigger long term profit.

Many traders are right about market direction yet still lose, because they can't hold a trend due to poor stop placement

6. Work smart and be humble

You get a lot of smart traders who think their clever.

They believe the more complicated they make their trading and the more effort they put in, the more money they will make - This is simply not true.

A humble trader who knows his limitations will more often than not beat an arrogant trader who thinks he's smart.

7. Know your Edge

To win at forex trading you need to have "an edge".

If you don't have an edge or cannot explain why you will beat the losing majority you don t have one!

Final words

Trading is a lot simpler than most people believe.

Acquiring the traits needed to succeed such as confidence, discipline and the courage of conviction to stand alone are harder, but if you follow the tips above you can get these traits and get on the road to making money fast in forex trading

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