A common question from many is that is it possible to make money or make a living from Forex. The truth is yes, of course one can make a living from Forex, however you have to learn to play the game first, learn money management and reduce leverage that you maybe using.
How to Make Money From Forex List
- Learn how to trade Price Action
- Learn Risk Reward Ratios
- Learn Money Management
- Lastly Do not risk more than x20 leverage. With most trades being x10. This is because the leverage is the common reason most traders even good ones fail on trades every now and then. If you don’t mind losing a trade or two then keep it around x20 but learn your money management. That is the key from here.
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Treat Forex Like A Business
If you treat Forex more like a business then trust me you will make more money. That involves looking for the best times to trade, the best highs to sell, the best lows to buy and understanding basic price action support and resistance. Practice these and you will find your trades success getting better and better.
You maybe wondering how long it takes to become a good trader? That is up to you, i still feel not fully confident even when my success is high and that is because the Forex market is so liquid, it is always moving and it is impossible to not lose a trade here and there. That is why we must except that as part of the game as well and then risk less when we know we are wrong and then make money when we see that are actually right as well.
Understanding Risk and Reward in Forex
That is part of the key as well of making a living from Forex, it is difficult and what makes it more difficult is if we forget the risk / reward ratio. The reward always needs to be at least double the risk and so over trading needs to be taken out of the game. Start to trade off the 1 hour, 4 hour and daily charts and that will help.
Trading as we all know is not easy, however with practice, time and patience like anything it can become an art. Get good at it and you can make a lot of money. Good luck.