Access to the Forex market offers the opportunity to be your own boss, work from home and make a lot of money, IF you are profitable. According to the statistics that are often shared online, around 90% of traders do not make money long-term and are not profitable. The dream of living a Forex traders lifestyle is often replaced with discouragement, frustration and disappointment.
So, how do I make money trading Forex? What is the 'secret' to profitable Forex trading? Why am I in the lucrative 10% of winning Forex traders? What do you need to do to become a successful Forex trader? Well, let me share with you how I make money from trading Forex...
How I make Money Forex Trading
It is all about having a trading system/strategy or having a trading plan
I have been trading for several years. I started by trading stocks and shares but later moved into European stock index trading and then to Forex trading. No matter what I have traded, I have always had a systematic approach to trading the market.
Having a clear set of trading rules in the form of a trading plan or a trading strategy or trading system is essential to trading success. Without these trading rules, traders are often left to trade their emotions, this almost always results in losing money. Fear, greed and boredom are the enemies of profitable Forex trading. A set of rules allows you to focus on a planned, back-tested and logical method rather than trading on what you believe you see or feel about the market.
These set of trading rules can include things like when to enter a position, when to close a position and how much to risk per trade. Trading rules for Forex can be based on technical analysis, fundamental analysis or a combination of both.
A trading strategy or trading system not only helps to minimise the psychological and emotional challenges of Forex trading, it also provides a trader with an edge - putting chance in the favour of the trader.
It is then about sticking to a trading system/strategy or trading plan
Once you have a set of trading rules, you then have to stick to the trading rules. There will be periods of draw-down, periods of consecutive losing trades and periods when you are not taking any trades. These times can be challenging and facing these obstacles is inevitable, no matter what your Forex trading strategy is. No Forex trading strategy will provide a 100% win rate (no losing trades) and offers numerous trading opportunities on a daily basis.
I suggest you read my 5 Tips to beating Forex trading emotions post.
My Forex strategies, systems and trading plans
I am a price action trader. Analysing price charts, Japanese candlesticks and moving averages makes sense to me. I love studying charts and identifying patterns and other price movements. My trading rules are always based around price action and include things like candlestick set-ups, horizontal support and resistance, trend support and resistance and dynamic support and resistance. This is how I trade. It is simple and very methodological.
If you are new to price action trading, please take my free price action trading course.
If you wish to learn more about my strategies and my approach to trading Forex, please take my Advanced Price Action Course.
Please watch my video below...