In terms of Forex trading advice, I would give any new trader to treat Forex trading as a serious business and you can make a lot of money and in this article I will show you how, but if you do this that most traders make and treat as a hobby or trade simply without a business plan, you will lose money. Let's see how to make a lot of money by exchanging currency.
When you start a business, you have a plan and Forex trading is no different and your plan involves:
– Search for all the BASES related to the company in which you operate and develop a profit strategy.
– An analysis of overheads and revenues to give you a REALISTIC profit target.
How many traders start with a plan like the previous one before trading?
Not much so let's take a look at what you need to do to make money and run for profit.
If you are a business owner, you know all the basics of your market and the same goes for Forex trading. You have to learn how to make money and how to design a system to work in your market and that involves developing a strategy which is simple to do because – good Forex trading systems are simple and therefore easy to learn.
The real problem for most traders is that they don't know the basics and they don't develop a plan and end up losing. They try to exchange news, follow gurus or use robots and think that they can get a shortcut to success and that they lose. If you want to win, you have to do your own research, accept responsibility, and execute your plan to reduce your business overhead and increase your profits, which is the real key to success.
The key to business success
The key to Forex trading is to make sure your income exceeds your overhead or converted to trading, it means reducing losses and making sure your profits are greater! Most traders don't and the reason they do is – they want to make money on the bulk of their trades but this is not possible, you have to have overhead to win, so taking losses is part of your business – the key to winning is reducing your overhead.
You will not gain 90% of your transactions as many people tell you, you will probably not gain more than 50% but that does not matter, as long as you keep your overhead (losses) low, your business can still make a profit if you execute profitable trades, to cover losses and make a profit.
All business owners will know it, they will have many losses of lighting, heating, wages, taxes, rents, etc. but they also know that they have some to gain and it is actually the same in Forex trading, your losses are your overhead and your gain trades can cover them and make you a lot of money ;money. To stay in business, you need to cut overhead.
How much money can you earn?
A realistic target growth per year is 50 to 100%, this is an approximate figure, but it is a good figure to aim for and unlike many other businesses, a Forex business requires much less ; efforts to make big profits than most other companies and I know many traders, who make 100% annual gains in about an hour a day – what other companies can bring you such great profits in such a short time ?
I can't think of a company with such great rewards for the effort you have to put into it. If you take your Forex business seriously, you can make a lot of money, but if you treat it as a hobby or a gamble, (like most traders), you will join the 95% of losers – trade – like a serious business and you can make a fantastic income.