Forex Trading Strategy?
Friday, February 21, 2014
, Posted by Ryanita at 8:59 AM
Q. is there a good forex trading strategy that work for anyone?
Answer
Here is a great Forex trading strategy that works very well for me. No it's not the regular advice that you get everyday from other traders that are probably losing their money in the market too. Most people will advice you to read all the books about Forex, take all the courses out there, practice for 5 years then see where will that take you. We know that this is non-sense.
When we decided to invest in the Forex market it was because we want to invest money and see some returns quickly without having to go through a learning curve that takes forever, then if you got really lucky it might work for you.
I decided to take a different approach and think a little bit out of the box. I figured, I don't have to be an expert in Forex to make money in that market. Let me give you an example. If someone filed a lawsuit against you, You don't have to study law for 10 years so you can win in court! You simply hire a lawyer that knows what he's doing to take care of that for you.
It's the same thing here, I am an investor I need to make money investing in Forex. There is no point in studying it for years and try to come up with strategies that only god knows if it will ever work or not. I even end up spending money on training courses and I find my self in the end losing money without even getting started in trading.
I took a different path, some might call it laziness but I frankly don't care. All I care about is to see returns on my investment without learning how to trade from scratch for years. I invest my time looking for qualified traders that have a track record and the skills to increase my portfolio safely every day. There are traders all over the world with outstanding trading skills there is nothing wrong with hiring or following some of them and in return they take a small cut, at the end of the day everybody is happy.
It's not an easy task to find a good trader with the skills needed to trade your money, But it sure is much easier for me than trying to learn all about Forex for years and even spend tons of money on courses and EAs. Let me tell you the key features that I look for in a trader. There are 7 key features makes a trader qualified to trade my account and I am going to share them with you.
The 7 Key Features/Skills That Makes a Trader Qualified To Trade For Me:
Risk shouldn't be more than 3% of the account in a single trade.
A track record and history of live trading on a live account for at least 1 year.
Risk:Reward ratio 1:1, I prefer 1:2 meaning profit should be double the risk.
Open positions shouldn't be more than 3 at any given time.
No Scalping! I don't go for 3-5 pips in profit per trade that doesn't work.
There should be always a "stop loss" and a "take profit" targets in place
TP targets should never be bigger than the TP targets.
Take the time to check online traders, and I mean real traders not robots. Make sure they have the above skills, study their history carefully and start partnering up with them. Trade a small amount of your capital and as you get comfortable increase your trading balance a bit by bit. This is a very realistic approach, and it works. I advice you to cut your losses today stop spending money on courses/trainers and look for real traders that can actually trade and help you grow your portfolio.
Here is a great Forex trading strategy that works very well for me. No it's not the regular advice that you get everyday from other traders that are probably losing their money in the market too. Most people will advice you to read all the books about Forex, take all the courses out there, practice for 5 years then see where will that take you. We know that this is non-sense.
When we decided to invest in the Forex market it was because we want to invest money and see some returns quickly without having to go through a learning curve that takes forever, then if you got really lucky it might work for you.
I decided to take a different approach and think a little bit out of the box. I figured, I don't have to be an expert in Forex to make money in that market. Let me give you an example. If someone filed a lawsuit against you, You don't have to study law for 10 years so you can win in court! You simply hire a lawyer that knows what he's doing to take care of that for you.
It's the same thing here, I am an investor I need to make money investing in Forex. There is no point in studying it for years and try to come up with strategies that only god knows if it will ever work or not. I even end up spending money on training courses and I find my self in the end losing money without even getting started in trading.
I took a different path, some might call it laziness but I frankly don't care. All I care about is to see returns on my investment without learning how to trade from scratch for years. I invest my time looking for qualified traders that have a track record and the skills to increase my portfolio safely every day. There are traders all over the world with outstanding trading skills there is nothing wrong with hiring or following some of them and in return they take a small cut, at the end of the day everybody is happy.
It's not an easy task to find a good trader with the skills needed to trade your money, But it sure is much easier for me than trying to learn all about Forex for years and even spend tons of money on courses and EAs. Let me tell you the key features that I look for in a trader. There are 7 key features makes a trader qualified to trade my account and I am going to share them with you.
The 7 Key Features/Skills That Makes a Trader Qualified To Trade For Me:
Risk shouldn't be more than 3% of the account in a single trade.
A track record and history of live trading on a live account for at least 1 year.
Risk:Reward ratio 1:1, I prefer 1:2 meaning profit should be double the risk.
Open positions shouldn't be more than 3 at any given time.
No Scalping! I don't go for 3-5 pips in profit per trade that doesn't work.
There should be always a "stop loss" and a "take profit" targets in place
TP targets should never be bigger than the TP targets.
Take the time to check online traders, and I mean real traders not robots. Make sure they have the above skills, study their history carefully and start partnering up with them. Trade a small amount of your capital and as you get comfortable increase your trading balance a bit by bit. This is a very realistic approach, and it works. I advice you to cut your losses today stop spending money on courses/trainers and look for real traders that can actually trade and help you grow your portfolio.
Forex credit?
Q. ok, im very very new to this. I think investing in Forex is appealing, but my question is, if a lot costs $100,000, and i open it with $1000, then i'll have a credit of $99,000, i have to pay it all back right? so it means that i will not gain any profit till i finish paying for the whole lot?please help... im 21yrs old and dumb...lol
is it very very risky to invest in forex?
is it very very risky to invest in forex?
Answer
One of the features of the Forex market that has captured the interest of many investors is the leverage that is available. It is not uncommon to find brokers that offer 100-1, 200-1 and up to 400-1 leverage.
This leverage provides the investor the opportunity to control $100,000 of currency (1 lot) with as little as $250 (with 400-1 leverage). Although this may look like a way to make great profits you can just as easily make great losses. Leverage exposes the inexperienced Forex participant to extremely high risk if they don't know what they are doing.
The other unique feature of the Forex market is the fact that certain currency pairs pay the investor a daily interest rate (swap rate) 7 days a week. With the interest paid daily on the $100,000 worth of currency the leverage could provide a very attractive annual interest rate. For example, the daily swap rate on 1 lot of the USD/CHF is currently $8.90, or over the course of a year $3248.
I must once again caution you though, that the Forex market is no place for the uninformed. There are conservative strategies that can be employed to reduce risks and generate a decent return but it is best to study and practice with demo accounts until risking any real money.
Good luck,
Paul
One of the features of the Forex market that has captured the interest of many investors is the leverage that is available. It is not uncommon to find brokers that offer 100-1, 200-1 and up to 400-1 leverage.
This leverage provides the investor the opportunity to control $100,000 of currency (1 lot) with as little as $250 (with 400-1 leverage). Although this may look like a way to make great profits you can just as easily make great losses. Leverage exposes the inexperienced Forex participant to extremely high risk if they don't know what they are doing.
The other unique feature of the Forex market is the fact that certain currency pairs pay the investor a daily interest rate (swap rate) 7 days a week. With the interest paid daily on the $100,000 worth of currency the leverage could provide a very attractive annual interest rate. For example, the daily swap rate on 1 lot of the USD/CHF is currently $8.90, or over the course of a year $3248.
I must once again caution you though, that the Forex market is no place for the uninformed. There are conservative strategies that can be employed to reduce risks and generate a decent return but it is best to study and practice with demo accounts until risking any real money.
Good luck,
Paul
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