“This Blog Post Reveals The 3 Things That You Must KNOW To Increase Your Profit in Forex…”
In real estate, to find a winner, you must focus on location, location, location!
Everything else is secondary…compared to selecting the right location.
Its the same with forex, you need to focus on these 3 principles…
1. The right strategy
2. Solid money management
Let me elaborate further…
The Right Strategy
How do you approach trading? This is a very important question because your answer will provide clues on your ability to become a successful forex trader.
You can focus on the short-term or focus on the long-term.
You can use indicators and robots to help make decisions whether to buy or to sell, or you can trade using the charts, without assistance from tools or automated devices.
Forex trading is risky. To minimize the risk and trade safely, you need to adopt the CORRECT strategy:
1. Use minimal indicators and don’t ever use a robot to trade. These won’t help you make money. Your BRAIN is your greatest asset to make wealth and of course, the Candlestick 🙂
2. Focus on only these time frames on your MT4:
4 Hours (H4),
Daily (D1) and
Ignore everything else…
How do you use these time frames to predict a profitable outcome?
Here’s how I would do it..
I will use the weekly chart to determine “where” the market is heading in the long-term. Is it steadily going up or going down? I won’t make any major decision with the weekly chart. It is meant as a tool to get a feel of the market.
Next…The Daily Chart.
Here’s where all the action begins!
While the weekly chart is slow and less volatile, the daily chart is more active and provides opportunities to make money during the week.
For example, if the daily chart shows an upward trend, you just need to confirm it with the weekly chart. If both shows an upward trend, your job is to find the “right” opportunity to BUY in order to make a profit.
How do you find the right opportunity?
By using the 4-hour chart.
The 4-hour chart, if used correctly, can be the ultimate secret weapon used to generate massive profits in forex.
I use the 4-hour chart mainly to determine when to enter the market and when to exit the market.
It’s a powerful tool especially when you combine it with other price action tools such as support and resistance and candlestick reversal signal. To learn more, I suggest that you check out this complete webinar replay on how to build consistent profit…200 pips and above per week with forex trading. Click here for more information.
3. Trade only the top 6 tradable currency pairs:
These currency pairs are more consistent to our kind of analysis.
Solid Money Management
Here’s the most basic money management rule in forex trading:
“Always use Stop Loss when you trade!”
This important rule is a safety net that will ensure that you don’t lose money while trading. Unfortunately, a lot traders ignore this rule because of overconfidence in the market.
Remember, the market can decide to change in an instant. It will not always follow the predictions you’ve made even if your prediction is logical and sound. The market is irrational and at times, random.
Therefore, the stop loss is a tool that will protect your equity from going totally bust.
Using the stop loss, you can manage the amount of risk you would like to take when entering the market.
So how much amount of money should you risk when trading forex?
The answer: Not more than 2 to 3 % of your equity.
That’s how the top traders are able to become become rich…They are very conservative when it comes to risk. They don’t overtrade and take unnecessary risks.
The entire subject of money management is discussed in the webinar replay. You can click here to download the recording.
Trading can be quite a roller coaster. Your emotion can go up and down in an instant. It’s very important for you to manage your emotion well…so that you can make the correct decision, not based on feeling but based on facts.
Emotional management comes after you have adopted the right trading strategy and the proper money management. When all the other elements are in order, then your emotions will be in order as well.
FXPRIMUS Malaysia IB
P.S. Nothing beats having a real person teach you how to trade forex the correct way. I can’t promise you a live person to teach you face to face. It’s quite expensive..However, I can reveal to you a complete but FREE Forex training, via a webinar replay that teaches even the complete NEWBIE how to make consistent weekly profits with forex trading..
Does 200 pips a week in profit sounds good to you?