How To Make Money Trading Forex

How To Make Money Trading Forex

 

How to make money trading ForexMost traders want to know how to make money trading Forex, well there are several factors,  but the one I think should be at the top or very near the top is money management.  In this Forex video I show how I made 323 pips while maintaining proper money management.   I mentioned in this Forex video I made 223 pips that was a mistake I made 323 Pips on a total of only six currency trades all off our key levels that we will start posting on our website soon.

Notice in the video how I maintained a 2:1 risk to reward profile on all my fx trades,  this is one keys to becoming a successful, consistent currency trader.  By maintaining a 2:1 risk to reward a trader only has to be right 33% of the time to break even. One of the hard parts about this is to make sure we as traders do not take profits too early by  moving stop loss orders up to break even plus a few pips to early.  As a trader we are not measured by our win/loss ratio, but rather by how many pips we make. Think about that before you put on your next trade or before you decide to move your stop up once the trade is a few pips in the money.  Even one of my trades were taken out of  for plus 7 pips due to me moving my stop loss order, but I moved my stop loss order when the currency pair was near filling the gap and about 80% or closer to my target, not when I was up 5 – 10 pips.

If you missed my last Forex video that showed me putting trades on live and pulling 152 pips out of the currency market then click here.

Other than risk to reward another key to becoming a successful trader is by taking trades at key areas on the chart that will not only have high probability of working out, but also accommodate  great risk to reward profiles.  Knowing when not to trade is just as important if not more than important then knowing when to enter a trade based on a certain strategy or indicator signal.

At the end of the Forex video I also cover a few currency pairs and what I expect them to do in the following weeks.  I keep my analysis simple using basic market structure to try and determine where the market is likely to trade to. The Eur/jpy has moved about 5,000 pips from the low a little over a year ago and the market broke out again last month or so after building lots of cause for 4 – 5 months before doing so, now over the last few days the the pair has started to pullback and when looking a market structure we can now look for the currency pair to try and make it’s way back down to the breakout area at that point we need to see if  it can hold support or if it wants to break and head lower to the next level.

How To Make Money Trading Forex Video


If you have problems viewing the How to Make Money Trading Forex Video then click here to watch on YouTube.

4 Responses to How To Make Money Trading Forex

  • jeff larson says:

    Mike, I think you are right on with the idea of less trades = better outcome. Wait for that great setup to come to you, it’s tough to get over the feeling of ‘missing the big trade’.

  • jim says:

    Mike that is awesome. Like you, I used to take a lot of trades and found out that I was trading more to try a get back the pips I lost. As you can guess, a vast majority of the time I would end up losing more. Love the work.

  • mike195 says:

    Quality over quantity each and everyday.

  • mike195 says:

    Jim and Jeff this week started off with a loss on trade 1 and trade 2, but the next trade was a winner and I was up for the week trade 4 put me further in the green. that’s the beauty of keeping a good risk to reward.

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