Can one make money from forex trading? The answer to that question is “yes”. Can one lose money through forex trading? The answer to that question is also “yes”. So if you think you cannot make money from forex trading, or that you can make money from forex trading, you are right. If you think you can make money from forex trading, you just might learn something from here.
For a moment, what do you make out of traders that took their time t study the forex market, chose a reputable broker, and based their trade activities on trading rather than making money but still failed? It sounds like these traders are on traders did the right things all the way but there is still something wrong. According to reputable and experienced traders, when it seems you are doing the right things and you still are not making money, then take your time and go back to see what is wrong. Meanwhile here are some tips you can consider.
- INVEST ONLY AS MUCH AS YOU ARE WILLING TO LOSE
Forex trading is a two way thing at all point; if you think you can make a profit of say 50%, it means you can possibly make a loss of that same amount. The amount of profit you make from forex trading is relative to your leverage plan; and the thing about leverage is that if the trade turns out good, then it will yield good amount of money, but if the trade turns out bad, then it will yield a huge amount of loss.
- DO NOT LET LEVERAGE DERAIL YOUR WINNING STRATEGY
Forex can make some good money for you if you do not depend so much on leverages. Like has been mentioned earlier, traders should invest as much as they are willing to lose. Sometimes, it is better to go with you winning strategy than to go for leverages. With a sound strategy, you can enter a little trade capital at a time and hope to win, but going all in with leverage will wipe your account if you lose.
- SPECULATIVE SENTIMANTAL INDEX:
Some reputable traders swear by this tool as one of the best trading tool there is in the forex market. SSI tells a trader how other traders in the forex market are trading regarding a particular security of interest. It shows the number of traders that long on a position in comparison to how many of them are short. This is really helpful in cases where a trader might want to do the opposite of what most other traders are doing.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.