Beginning traders often have the wrong ideas about making money in the Forex market when they first start trading. Many new traders think that they will instantly start making money after they open up their live trading accounts, or that if they just buy some great-sounding Forex trading robot or indicator-heavy trading system they will have the key to riches. Well….the reality is a bit different…

• What do you need to know about making money in Forex?

The first thing you NEED to know about making money in Forex is that you need to aim to make consistent money, instead of huge gains followed by huge losses. Most traders’ equity curves look like a piece of modern abstract art because they simply don’t manage their risk effectively, they don’t understand risk reward. and they over-trade. This results in periods of large winnings followed by periods of even larger losses, typically this happens until they blow out their trading account. Why does this happen though? The primary reason most trader’s experience these volatile changes in their trading account is because they are trading emotionally. Traders who trade emotionally are not making consistent money because their emotions are not consistent. If you want to make money in Forex you need to constantly be aware of your emotions and make sure your trading routine is consistent and that it reflects your consistent mindset.

• What are the best Forex strategies for making money in Forex?

The best forex strategies to make money with are typically going to be ones that do not confuse you are cause you to second-guess yourself. As I alluded to in the opening paragraph, many traders end up using mechanical Forex trading systems like trading robots and indicator-based systems. Unfortunately, these types of trading systems seem good on the surface but in reality they deliver very little in the way of clarity and effectiveness. What you really need is a forex system or forex trading strategy that is based in simple chart-reading skills. What I am talking about is classic technical chart reading skills and classic technical analysis; the foundation of all technical trading. There are different types of forex trading strategies and systems out there, but generally speaking, simple is always better.

• How do you learn to make money in Forex?

The answer to this question is a bit in-depth. You must first learn how to trade effectively, and you must learn an effective trading strategy that isn’t too complicated. Once you do this, you have to actually learn to manage yourself in a responsible manner in the markets. This means constantly being aware of your emotions and actions, and making a Forex trading plan and keeping a Forex trading journal. Traders who don’t do these things are typically going to lose money, sooner or later. The best way to learn how to trade the markets is to obtain training and guidance from an experienced and successful Forex trading mentor. just as learning any other skill or profession is best learned from a mentor as well.

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