fadydodo Posted February 21, 2011 Share Posted February 21, 2011 Forex trading is fast becoming one of the most popular methods of making money from home; unfortunately it is not as easy as people might think. It is a true fact that at least 80% of new comers to the forex market will lose money in the long term. Making a winning forex strategy is the key to success. Every currency trader has some sort of strategy which should include money management and trading management. You have an idea of the kind of money you want to make each day from the market without pushing the regular boundaries of the market place. What we mean with regards to pushing the boundaries is; if you trade the EUR/USD on a regular basis and you often see it move 40 pips quite naturally before it consolidates or reverses, then the natural boundaries for that currency should be 40 pips. Trying to get more out of a trade will often result in disaster. It is best to take 10 pips off this natural number to be safe; so you are looking at the EUR/USD making 30 pip moves quite easily, now you just need to work out how much you need to stake in order to make your quota for the day. Making multiple trades on the forex market is asking for trouble, it is best to get in take your quota then close your platform down; greed will only lead to disappointment. If you are happy with £30 extra in your pocket for the day then you only need trade at £1 a pip if you need £300 a day then you will need to trade at £10 pip it is that simple. Choosing your stake should directly relate to the trading balance that you have. It is best not to risk more than 10% of your trading balance on any one trade; losses are inevitable if you risk everything on one trade you could find yourself with no balance left to work with. You will find with time that a winning forex strategy is not one that I or anyone else can tell you, it is one that you will develop over time with your own experiences and knowledge of how certain markets react. It is imperative that you go through this learning curve preferably on a demo account so that you do not risk any initial money in the forex markets. Quote Link to comment Share on other sites More sharing options...
Vaabum Posted August 26, 2022 Share Posted August 26, 2022 Do not hope that one strategy can always be used and make money on it. Unfortunately, it works a little differently. Quote Link to comment Share on other sites More sharing options...
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