We all know that online Forex trading is risky - and that it offers one of the few ways to start with small stakes, and build real wealth quickly.
This article is all about taking calculated risks at the RIGHT time to make money fast.
Much of this article does not adhere to conventional investment wisdom - but don’t let that bother you, as 95% of traders lose all of their money or only manage to make mediocre gains.
First, let’s start with an interesting fact:
I once knew a retired woman of 81, whom with no previous experience learned Forex trading in three weeks. She then started trading and made 129% annualised profits over 3 years!
She broke many conventional online Forex trading rules - but she didn’t care, and she made a killing in the Forex markets - and you could too.
Let’s look at how she made big gains in her online currency trading.
She had a simple method:
1. She drew her charts by hand, and looked at support or resistance. When prices approached valid resistance or support, she looked for it to hold or to break.
Then, all she did was use two indicators to time her entry, (stochastic and RSI) and make sure she was trading with price momentum.
She went the way price momentum told her – but it’s the next points that may surprise you. The following is what really gave her currency trading success, and triple digit gains:
2. She traded infrequently
In her first year, she traded 3 times. In her second year, she traded 5 times. In her third year, she traded 3 times.
Her logic was:
Why trade if the risk reward was not heavily in her favour? Many impulsive and impatient traders could learn from this bit of Forex education!
She once said, that she’d wait until the trade gave her conditions that made making Forex profits, as easy as picking up her pension at the post office.
If you think about it, in currency trading how often do the really big trends come along? - Just a few times a year and these were the ones she hit hard, using her Forex trading signals.
3. Hit trades hard.
You hear a lot about diversification being the way to make money - but this lady held the view, that all it does is dilute your profit. Therefore, she only focused on one trade - and piled as much money as she could into the position.
She simply placed a monetary stop - and if she was wrong, she took her loss in good humour.
4. Courage and Discipline
The trades she hit were the ones she believed would be the big winners, and likely to pile up tens of thousands of dollars.
Therefore, she let the trade breathe - and anyone wanting to learn Forex trading should take note.
Her view, (which is right) was that most Forex traders want to make money - but lack courage of conviction - and cannot take a big profit. They try so hard to protect their profit when they make one, that they move stops up too quickly - or snatch their profit too soon.
Sometimes she would see her equity dip by thousands a day, but she stood firm. As she put it: “I have my eye on the bigger prize” - and that was a profit target that was far bigger than most traders aim for.
Her currency trading system worked, and it worked well.
Interestingly, she broke a lot of so-called accepted investment wisdom - she didn’t trade much, didn’t diversify, didn’t trail stops. However, thinking about it, isn’t that what the losing majority of traders do?
As she put it: “Why join them? I’m cleaning up in my currency trades - and they’re not”.
If you trade in the online currency markets, and want to make triple digit gains - then maybe you should consider how she achieved them. It makes sense to me, and maybe to you too.
By : Stephen Todd - http://www.bestonlineforexbroker.com/
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