How to Make Money in Forex Trading Like a Millionaire?
That’s a good question and one that should be answered before you decide if trading Forex is for you. Many advertisers of Forex are Forex Brokers.
If you Google “Forex” you will see that most of the results are brokers with trading platforms all competing for your business.
They offer free demo trading and some offer some basic Forex trading courses. They entice traders with the idea that they can make thousands of dollars by working from home; that the Forex market is the fastest growing financial market in the world and that anyone can learn to trade. Added to that are facts like: Forex traders can trade 24/7, leverage of up to 400:1, trade short or long, etc. All of these things are attractive and worth looking into but they should not cloud the real issue; are you ready to trade Forex?
There is no question that trading Forex can be very lucrative however, the soon-to-be Forex trader should consider the amount of time he or she is willing to put in to become successful. For example, many Forex traders don’t realize that they are sitting on one side of the market trading and there are traders and computer trading programs on the other side; much like two people playing chess. The odds are heavily in favor of the other side. Re-read that several times. The traders on the other side, so-to-speak are trained to win; and win at all costs.
Consider that bank traders who are some of the strongest foreign exchange speculators get to work at 6AM. They may spend several hours reading up on the latest news from around the world. Often, they have meetings where they are briefed about current events. They will have information that you don’t have from their order books which can give them a head start to the direction of the market. They may know what to expect in terms the kind of volume from other non-commercial traders.
Make no mistake, as a day trader of any sort, Forex or other, the game is zero-sum. Someone will win and someone will lose. Much depends on your willingness to be on top of your game.
Here are a few ideas that will help you become a better trader.
1. Read, Read and Read. Read books on trading, read websites on trading, news sources etc. This will keep you informed.
2. Find a mentor. Learn all you can.
3. Make certain you have a good trading system. The best way to tell is to track your trades. If you can, track your trades algorithmically.
4. Continually ask yourself questions about the viability of your trading method and what edge it creates. If it does not give you an edge in the market then you either should change your system or you should determine how to improve it.
5. Attempt to develop statistical data about your system that alerts you to the best time to trade; this is part of knowing the edge you have over the marketplace. If possible make your statistical data algorithmic so that you can access and update it as necessary.
Top traders know where and what their edge is in the market, your trading methodology is a good one when you know what that edge is and when to trade it. If you don’t know it, you will not be ready to beat that trader sitting on the other side of the virtual trading table. Follow the steps above and you eventually see results.