Making Profits

    Basics for Making Profits

If you want to learn currency exchange the aim is simple:

As one currency rises another must be falling and your aim is to work out which are strong currencies and buy them, against weaker currencies. If you can learn to do this, you can make huge profits. Managing currency exchange is very similar to playing online poker - you try to get a good grasp of the elements that help boost your chances of making gains.

Learning currency exchange methods that can make you profits is relatively simple.

You need to learn the right knowledge, avoid common myths and trade with discipline.

While on the surface of it currency exchange looks relatively simple, few people master it and make money. The facts are that 95% of traders who try to learn currency exchange and make a profit – fail.

The first thing you need to familiarize yourself with is how prices move and this is something most traders don’t ever learn. If you do, you already have a head start on your way to making profits.

    Learning Currency Exchange for Profit Basics

Here are some basic points to keep in mind.

We have explored each point in greater detail in other section of the site – but here we will review the most important points.

Let’s get started and look at the basics of learning currency exchange for profit.

   Work Smart NOT Hard

The first point to keep in mind is you don’t need to have a college education and you don’t need to be smart or clever to learn currency exchange and win.

You don’t get paid for being clever in forex trading you get paid for being right, so you need to work smart rather than hard.

There is a famous example when legendary trader Richard Dennis, taught a group of traders who had never traded before to trade in just 14 days.

The result?

They went onto make $100 million for him!

All he did was teach them the right forex education and that’s what you need to do too.

Using Technical Analysis Correctly

The simplest and most time effective way to learn currency trading exchange and predict market movement is to use technical analysis.

This will allow you to take into account the forex fundamentals and investor psychology and see and act on the price as it is – no predicting, hoping or guessing, you act on the reality of price changes.

There are many ways of using technical analysis and forex charts.

Using them is very much an art and not a science. You can’t be right all the time and you cant predict prices in advance but you can trade the odds and if you do this correctly, you can make a lot of money.

You need to keep in mind that currency trading is an odds game – NOT A game of certainties.

You should use a long term trend following or a shorter term swing trading system as the basis of your forex trading strategy and avoid day trading at all costs.

Forex day trading, is simply a way to lose you cannot get the odds in your favor and therefore cannot win. It’s a good story - but stories don’t make money – steer clear of it.

The final point to keep in mind when using technical analysis is:

Always keep your currency trading system simple.

Simple systems are easier to understand, easier to apply and more robust than complicated ones, in the face of ever changing brutal market conditions.

   Your Mindset the Key to Profits

Learning currency exchange is easy and every trader is capable of becoming a successful trader but they either fail to learn the correct forex education, or find they cannot apply what they learned with discipline.

If you have a method you need to apply it with rigid discipline or you don’t have a forex trading system at all!

Discipline comes from understanding and confidence in what you are doing.

Only if you have these traits, can you apply a method with discipline – if you don’t fully understand this point you will lose.

Currency trading success rests on your shoulders and you can’t blame anyone else if you fail, so you need to take responsibility and do your homework.

If you learn foreign currency exchange, you don’t just need to learn a method to succeed you need to learn the correct mindset to apply it.

You can read more about this in our achieving success section.

   Building Wealth 

 

There is no better way to build wealth than learning currency exchange the right way and if you do, the potential you have is huge to build long term wealth.

Forex trading is the world’s biggest business and the most exciting. For those traders prepared to work smart, who have desire and a cool head, it can be a route to financial freedom.

Sure it’s a challenge, but the question is are you up for the challenge?

If so welcome to the world of forex trading