Making the odd winning trade isn’t hard. In theory you have a 50/50 chance of being either right or wrong on a trade. The tricky part is making consistent forex profits. So I’ve together this post with some of the best tips I have for becoming a better trader and actually profiting from forex.
First off, if you’re completely new to trading, then I don’t think you should try and go it alone. You will only end up losing money. So this post might not be for you, and instead I recommend trying copy trading first.
Copy trading is where you automatically copy the trades of a guru trader – i.e someone who knows what they are doing. I still use copy trading, and think it’s a great option for traders of all experience. My favorite platform is eToro which has over a million traders to potentially copy. Make sure you read my guides for copy trading on this site, to point you in the right direction.
Use fundamental analysis
Understanding fundamental analysis is essential to becoming a profitable forex trader. So where do you actually learn about Fundamental Analysis? Most brokers offer some type of training material. This is a good place to start. If you’re looking for more detailed course, try on Udemy, which offers a selection of different courses. The cost is usually pretty small ($15 or so) and i’ve found them to be quite good.
I recommend to people I mentor to get stuck in trading as soon as possible. But this DOESN’T mean using real money! Start with a practice forex account. Move to a real account only when you’re seeing some consistency with your forex strategy in your practice account.
Learn to read charts
Reading charts is a basic skill for any forex trader. Traders will spend most of their day with a chart open. So make sure you know all about reading charts. For me, I found the best way to learn was through a practice forex account. eToro offers good charts, and lots of charting tools to play with. Practice looking at different time periods, and plotting some technical indicators on the chart.
Reduce the leverage you’re using
A common mistake new traders make is using too much leverage. The result can mean that one bad trade will wipe out all your forex profits. Start with a smaller amount of leverage to begin with. Sure, when you have winning trades, your profits won’t be as large. But at the same time, your losses won’t be as big either. Sometimes the best way to increase your trading profits, is to work at better managing your losses.
Don’t be fooled into Binary options or robots
Forex robots and binary options are two schemes/scams that many new traders fall for. They won’t increase your profits. While traders do use software to assist them, there is no single tool that you can just flick a switch and make money on autopilot.
The truth is, making money from forex requires practice – just like any other skill.
What are your tips for making money from forex. Let me know in the comments 🙂