Make Money Trading Currencies 4 Steps to Currency Trading Success

Make Money Trading Currencies – 4 Steps to Currency Trading Success

If you want to make money trading currencies, then we will show you how to do this in simple steps. Here we will give you the basics and help you build a currency trading system for long term trading success.

Step 1 – Get the Mindset for Success

You cannot get currency trading success from others and there are plenty of people wanting to sell you automated forex robots and systems but they don’t work. If you want to win, you have to understand that you need work and learn currency trading for yourself. If you do this, you will have confidence in what you do and the discipline to follow your system.

Most traders fail because, they don’t have the discipline to follow their system and if you don’t have the discipline to follow it, you don’t have a system!

Step 2 – The Methodology to Base Your System On

The best, simplest and easiest to understand methodology, is to buy or sell breakouts of price, to new market highs or lows.

Look at any forex chart and you will see most major trends start and continue from new market highs or lows. If you can go with them, you can make a lot of money. Most traders don’t and that’s why the majority lose.

Most traders want to wait for a pullback, to buy at a “better price” and of course prices don’t pullback and they sit and watch, as the trend sails over the horizon and makes thousands of dollars in profit and their not in!

Go with breakouts and sure you miss the first bit of the move – but if it’s a good break, you will have a lot of profit ahead of you.

Step 3 – Basics of Your System

You need to understand support and resistance.

Look for levels that are considered important by the market and the more times the level has been tested the better. You then need to confirm that when a break starts, the odds are on your side and it will continue and for this you need to use momentum oscillators.

We have discussed these fully in our other articles but for now, you simply need to know they will help you determine price strength through the breakout point. If price momentum accelerating, the odds are on your side and you can enter.

Look up the stochastic and RSI for this – there great indicators and you can learn how to use them in about 30 minutes.

Step 4 – Money Management

You need to play great defence and defend your equity. Just like all the great football teams, if you have a great defence, the offence will get the opportunities and make them successful.

With breakout trading, your stop is close and obvious (below the breakout point) and you should trail it slowly as the market moves.

Don’t make the mistake of using too much leverage.

You can get up to 400; 1 but 20:1 is plenty, more traders lose due to over leveraging than any other reason.

Putting it all Together

You don’t need a complicated currency trading system, you need to keep it simple so your trading system is robust, in the face of brutal market conditions. The key though is discipline; you must be able to trade through losing periods, until you hit a home run.

If you want to make money trading currencies – you can. The above tips will help you and remember, work smart not hard, keep it simple, get the right mindset and you will enjoy long term currency trading success.