Making money on the forex market is not an easy task in any way. However, given a little education and market knowledge, it can be very easy to make a profit on the forex market. Most traders finally find out that it is a simple system that creates wealth. Excessive analysis and excessive thinking can sometimes affect your trading methods and strategies.
The method of trading in forex
The trading method that I will explain here may disappoint you a little and will most likely conflict with everything you have learned about forex. However, you must remember that this is my personal strategy and how I make money. This might not work for the next person, but it has shown me how to make a lot of money on the forex market.
Through your forex training, you may have heard traders tell you to always trade with stop-loss. If you don’t know what stop-loss is, it’s just an order telling the broker when you want to cut your losses. I do not trade with a stop-loss period. How about this? How can I make money without using stop-loss? I tend to believe that big players on the forex market like to move this market in a certain direction to take other traders’ stop-loss positions. In order for banks to make money, they must take other traders’ money, therefore issuing stop-loss orders on the market. I do not allow banks to do this to me personally.
Second, every trade looks like it only makes a few pips. In some cases, this is known as market scalping. On every trade, I only want to get 3 to 6 pips or as I say, in and out.
Your next question might be, “how do I know when to enter and exit the market?” I use a series of indicators combined with detailed analysis of trend lines and channels. The indicator tells me when to enter and exit and the trend line gives me the overall direction of the market for the following month to several years. Having a good idea of where the market is going for several years gives me a good idea whether I am in buying mode or selling mode every day.
The Importance of Stop Loss.
How is it possible to survive without using stop-loss? Simply put, don’t take large amounts of risk on every trade. I only risk one tenth of my account balance per trade. For example, I only trade $ 1 lot on a $ 10,000 account. What this allows me to do is not use stop-loss. If the market moves 200 points it doesn’t matter. When the market moves 200 points, I have already made 100 profit trades, all for 3 to 6 pips each. If the market continues to stay away from me, I continue to trade every day to get what ultimately compensates for some losers and eventually overtakes them. When the market returned to support me, those who lost trade made a profit every step.