How to Beat the Banks in Forex?

If you are new to Forex you are probably wondering how the whole exchange works and secondly how to make your first profit.. By following a few rules set down below as well learning how the Forex system works as well you will have a better chance at beating the banks and making some nice moola..

Michael Douglas - Quoting Greed is Good!

Okay firstly, when you trade you in a sense are doing what? You are exchanging money from once currency to another, during these exchanges the banks make billions and billions every year in these exchange differences.. No matter what you do in forex the banks make money.. So how do you beat them? Or in a sense how do you work with them and profit also? You do this by excepting how the Forex is. You must except that banks are out to get your money and also brokers are out there also to get your money as well. By understanding this you then can modify your Forex trading strategy into a style that reduces risk and secondly limits your trading. By doing so you will not only lose less but you will also make much more money..

5 Tips to Beating the Banks in Forex

Below are five tips everyone should be aware of that will help you beat the banking system of making you lose your Forex Trade:

1. Make sure your Forex broker provides low fixed spreads. Forget the variable ones they are a joke, if you are paying more than 2 pips for the AUD / USD or 3 pips for the EUR / USD then you are being RIPPED off.. Basically the broker is taking your money and you will find it impossible to win a Forex trade even with successful ones. One such broker that i recommend that provides good fixed spreads is Etoro.
2. Secondly use a mental stop loss, a lot of brokers will once you place a trade hunt down your stop losses and kill your trade almost immediately. I recommend a 100 pip stop loss or more or don’t even bother trading..
3. Sell at Highs and Buy at Lows.. This is very important, look for highs and sell there during the day and look for lows and buy there, this will double your profits and allow you to trade less.
4. Trade with the news, not against it, the news is your friend so use it, if you notice a rate rise change for example it is not uncommon for the dollar to rise 100 pips in 10 minutes so this can either make you or break you. So pay attention..
5. When you see a trade changing in trend and you are in profit then close the darn trade, do not think greedy here, that is for gamblers instead close or buy into that new direction. Both ways ensure better profits..

Are the Banks Your Friends Really..?

Lastly on a ethical note, if you think the banks are your friends then think again, they are out there to create profit and by doing so they do not mind taking ( legal stealing ) money from as many sources as possible. These guys manipulate, destroy and fix economies, which ever one profits them most they will support. A perfect example of this is the current Greek Crisis, them not defaulting in Greece fixes the banking system debt, but in return ruins millions of peoples lives, will the banks give back for this gift, the answer is no? Do the banks ever give back for any of these government bailouts? The answer is no? And has a bank ever helped starving innocent victims for all of there capital profits, the answer is no? They could seriously improve the world but unfortunately they care only about one thing.. PROFITS… They even do not care who lives or dies, they care about profits.

That is what i love about Forex, it is about taking control a little bit against the buggers that try to rule us. By being successful in Forex you may not fully beat the banks but you do beat the banking system. Good luck all with your next trades.