Use These Tricks To Make Money From Forex Constantly!
Many Namibians like trading foreign currencies on the forex market because it has been popularized by the renowned Amushe and other forex gurus.
Forex is a strong investing option, since beginning day trading needs the least amount of cash. During the week it is open 24 hours a day and offers a great deal of profit potential thanks to the access given by forex brokers.
Forex trading, however, can be extremely volatile and inexperienced traders can lose large sums of money in seconds.
Risk management is crucial for every profitable trader. Minimising loses can significantly increase your balance without winning more.
Many forex gurus recommend new traders to risk at most 2% of their balance on open positions at any given time. More experienced traders should risk 5 – 10% while professionals can risk as much as 50% on a single trade.
KNOW YOUR NUMBERS!
Figure Out Your Win Rate
A win rate is the number of trades you win compared to the number of trades you lose. If you happen to enter 10 trades per day and you win 6 of those trades then your win rate is 60%. Winning consistently is what separates the winners from the losers.
Adjust your Risk/Reward Ratio
Many beginner traders set narrow stop losses and wide take profits. This makes sense logically because no one wants to lose big but does it work? Well, it depends! If you are trading news, it is perfectly fine to set small stop losses and wide take profits but if you are trading technically then it would be wiser to set wider stop losses and smaller take profits.
Use Bigger Leverages
Use the leverage of between 100 and 500. Smaller leverages don’t usually have a big effect on your account. Let’s say you have N$ 500 in your forex account and you enter a trade with 1 standard lot, 10% risk & 100 leverage. That translates to N$ 50 x 100 = N$ 500/pip. You would Win N$ 500 per pip. Isn’t that great? You would, of course, use a smaller lot size for a N$ 500 balance but you understand the maths now.
Choose Brokers Wisely
You should try to use ECN brokers if you want to be successful. Other types of brokers inflate their spreads quite often than not. It is a very well known fact that Forex spreads widen insanely around 23h00 in Namibia. This usually wipes out many trades that are far from their stop losses.
Only Trade 3 Currency Pairs
The number of currency pairs on the forex market is overwhelming. Many people try to trade each and every pair and lose trades left right and centre every day. Specialize! Choose one currency pair and master that certain pair until you know all its movements by heart. If you feel like one isn’t enough then only trade 2 or 3 at most. Every Currency pair is complex that’s why it is wise to focus on one and learn the ins and outs of it.
But How Much Can I make?
Let’s say you enter 30 trades in a single month. With starting Balance: N$ 500
20 trades were profitable: 20 x N$50 = N$1 000
10 trades were losers: 10 x N$50 = N$ 500
Your profit is N$ 1 000 – N$ 500 = N$ 500
This might not be mind-blowing but do you realize that that is a 100% profit per month? If you win like this every month you will make:
- Month 1: N$ 500
- Month 2: N$ 2 000
- Month 3: N$ 4 000
- Month 4: N$ 8 000
- Month 5: N$ 16 000
- Month 6: N$ 32 000
The figures above are proof that patience is very important in forex.
You can adjust the scenario above based on your typical stop loss and target, capital, slippage, win rate, position size, and commission parameters.
Use a trading robot/EA
For those of you who to join forex but you just don’t have the time to learn or trade, there is a solution for you. You can use Forex robots also known as Expert Advisors. There are many good bots out there. I tried a few but the one that performed well for me was the 85% Winning Forex Robot 2.0. It is quite simple to use hence, it doesn’t matter if you are a beginner or an OG.
You can get it for free here:
Forex trading can be a good way to get out of poverty but it can also be a great way to get deeper into poverty. That is why we recommend you to first learn forex on a demo account and learn from someone who is better than you at trading. However, you should be careful of scammer.
With that said: Oilonga.com will not be held responsible for any money lost in forex, by scamming or in any other way. Trade responsibly!