Tag: Forex

All forex related articles are found here. Educative, informative and written clearly.

  • Forex Trading is Profitable. Right or wrong?

    Forex Trading is Profitable. Right or wrong?

    2 min read

    Is Forex Trading Profitable?

    Forex trading is profitable but the market isn’t endless, you have to know that.

    The size of your trade has an important impact on how you can bring a trade out.

    Don’t look at the percentage of what a so-called pro-trader does. People like to think in percentages way too much.

    Percentage of what?

    When you start, you can have someone who would be your ideal or paragon. But you always have to keep in mind that such trader is already experienced in trading.

    She or he does some things spontaneously, and you are the one who just stepped in on this scene. But if you’ve mastered some trading skills and have tested them well on some free demo account, you may have even one advantage.

    The experienced traders have more money, it is a blessing and a burden at the same time. But you can be more flexible to trade with high precision very close to how the market moves.

    What I want to say is, you should never underestimate a “small” position. Forex trading is profitable even in that situation.

    For the FX market, you can be small fish.  

    But that “small fish” can make a couple of hundred USD per pip. Is it good enough for you? Well, that’s why comparing percentages without comparing the actual pot is an unnecessary exercise. 
    Is Forex Trading Profitable? 1
    But it isn’t easy. Hard and smart work lies behind it. Of course, you have to involve a bit of luck to find the right stocks, right things while your motivation is still on the top. But when you make any success, you will see it is worth it.

    But you have to be dedicated to trading in order to be able to trade when markets move the most. If you live in a European time zone it is from the early morning to the afternoon. But if you live in some other part of this lovely planet I would recommend to your attention, one of my older posts.

    Some traders said: I’m trading short term on the 1-minute candlestick chart.

    Take this as a recommendation:

    Average holding time depends on what the markets offer you but it is rarely under 6 minutes and rarely over 20 minutes.

    Stay focused on reversal signals and have pay attention to good ones and fake-signals apart. Support/resistance areas play a role but you need to practice to be good at it.

    You have to treat trading as a profession or a business.

    Only in that way success will come.

    Why I’m saying this to you?

    Is Forex Trading Profitable? 2I have a friend. Forex trading has been an expensive venture for him, indeed. In his first 2 years of trading, he lost $30k. He almost went bankrupt because he was naive and greedy. His main problem was, he entered at the wrong time and exit at the wrong time. No matter what he did he was always on the wrong end. At that moment we couldn’t talk about how forex trading is profitable, right? This improved drastically when he found his own method. (And maybe this is the secret of any successful trader.) Now he has been profitable for over 15 months.

    Forex trading is profitable but not for everyone

    But I’ve seen a numerous amount of people lose everything in trading.
    Hundred and thousand times you should ask yourself:

    Why do I trade? To become rich? Is it a hobby?

    Do I love it or I hate it? Is forex trading harmful to me?

    Why I am forcing myself to all of this? Just for a chance to be a member of the profitable 5% club?

    Did you ever hear the saying: “If you don’t know who you are, the market is an expensive place to find out.”

    And the most important question is: Is trading really worth the effort invested?

    Trading attracts mostly because of the freedom it provides.


    Trading Forex isn’t a “get rich quick” method.

    With constant profits in order to make enough money not only to live but to build up a constant surplus.

    So, you can move on with your plans and plan your life. Maybe your focus on how much money you can make per year isn’t the best.

    You may think you can see better, you know better and you can believe in that. But that is a great paradox and tiny line.

    If you cross it, it can be the biggest tragedy. In every single moment, you have to take care of risk control.

    It doesn’t matter what you see or you think you know.

    Risk control! Double-check! Opened eyes! Use the excel.

    Sometimes, even the things you wrote before can be very helpful. Having some downloaded system is useful but money management is KEY to success.

    To gain knowledge of how to make a profit is much much more than what you can learn from a job in the corporate world.

    The knowledge has to be the goal.

    Yeah, I know. Time is money.

    Forex trading is profitable for me.

    Is it worth it? Yes!

    Should you continue trading? Yes!

    Should you continue with your studying? Yes!

    Should you continue looking for a job? Yes!

    Can you manage to do all of these things at the same time? It is up to You.

    The main factor for success is your permanent education and training. You have to believe in yourself and find what works for you.

    The only thing that brings you to your failures may be your ego.

    And if you aren’t ready to keep going after a series of losses, Forex probably isn’t for you.

    Risk Disclosure (read carefully!)

  • Can I get Rich by Trading Forex?

    Can I get Rich by Trading Forex?


    Some people really got rich by trading forex but they spent a lot of time and money to reach that level. Forex trading is a seductive but rocky path.

    By Guy Avtalyon

    Can I get rich by trading Forex? Yes, you can. Honestly, it’s possible but you have to learn a lot. When you first start learning something, you acquire information. As you acquire more and more information, your mind will sift through it and will organize it, and will only leave the most important information that pertains to you. And that becomes your knowledge. Then as you start acting on your knowledge, and start gaining experience on a subject, that knowledge turns into wisdom.

    I would like to emphasize this. In order to become successful,  it isn’t that you need to only be knowledgeable, but you also need to be wise, and wisdom is only acquired through action and experience.

    Listen to the wise people if you want to get rich by trading Forex

    But there is also a second point in this story. You can’t become a successful trader, no matter how much information you were gathering, and no matter how many books you read from “knowledgeable” experts if you are not ready to carefully listen to what wise people have to tell to you.

    So please, before you open up space in your mind to someone or something, make sure they are a wise person who is actually trading and making money in forex, instead of just giving you a bunch of useless theories. When you find such a person you will know that. You will feel like the guy who discovered the king’s tomb.

    Oh, yes, you will have one of those moments where you are staring at one of those optical illusions, staring at it for hours until KABOOM! It hits you “it’s a f***ing ship out to sea!”

    Until you get rich by trading Forex here are some tricks!

    Choose a Broker With Appropriate Trading Platform 

    You must know each broker’s policies and how it goes about making a market. Spending time researching the differences between brokers will be very helpful but choosing a reputable broker is of paramount importance.

    Define Your Goals, Methodology, and Style 

    It is vitally important, to have some idea of your goal and how you will get there. Hence, it is imperative to have clear goals in mind. After that ensure your trading method to be capable of achieving these goals. Each trading style has a different risk profile and each of them requires a certain attitude and approach to trade successfully. Whichever methodology you choose, be consistent, and be sure it is adaptive. Your system should follow the changing dynamics of a market.

    Choose Entry and Exit Time Frame 

    Some traders are disoriented by conflicting information that happens when looking at charts in different time frames. If you are taking your basic trading direction from a weekly chart and using a daily chart to time entry, be sure to synchronize those two. If the weekly chart is sending you a buy signal, just be patient and wait for the confirmation from your daily chart. It should also give you buy signal In Forex trading timing is everything.

    Learn to Love Small Losses

    Think of your trading money like holiday money. Have the same attitude toward trading, once the holiday is over, your money is spent. This will mentally prepare you to take small losses. This is key to managing your risk. You will be much more successful by accepting small losses rather than constantly checking your balance.

    How to use Forex trading system  

    When knowing what to expect from your Forex trading system you must have the patience to wait for the price. It needs time to reach the levels that your system indicates for either the point of entry or exit. If your system point to entry at some level but the market never reaches it, then move on to the next opportunity. There will always be another trade. Sit on your hands until your system triggers an entry or exit point.

    Forex can change your life

    This is pretty much true but you must have realistic expectations. You can’t expect to invest $300 in your trading account and make $15,000 in each trade. That means being not – realistic. However, the Forex market sometimes can make a much bigger move than you expect. But it is not the rule, keep this in mind. It is better for you to be positively surprised than to lose everything. This is particularly true for Forex trading beginners.

    Build Positive Feedback Loops

    When you plan a trade with due diligence and execute it well, you create a positive feedback pattern. Success produces success, which grows confidence and you have a profitable trade. A positive feedback loop is formed as a result of a well-executed trade. But when you know that it comes in accordance with your trading plan the effect is more intense. Even if you get a small loss, you will be building a positive feedback loop. Think about the feedback loop as a tool and you’ll understand how important is to create this tool. That is the secret of how to get rich by trading Forex.

    Test Your Skills

    Open some free demo account and test. Submit trades in a virtual ambiance with virtual money before you start risking your own money. You should never ever trade a setup just because candles are moving. The aim is to be prepared and anticipate movements. You have to understand one rule: when a currency pair is moving fast, the reward to risk ratios are decreasing very fast. That means, there are more chances of the currency pair moving more pips before it makes a retracement. By jumping in a trade that is moving, the likelihood of a lower reward to risk ratio is high and the chances of a continued move without retracement are smaller.

    The best trading occurs when traders have both the mindset and trading mentality of a hunter when approaching the Forex market. If you coolly view and analyze what the conditions of the market are and then comparing that setup to the desired market environment, you are on the right path. If the market is offering sufficient odds of success and reward to risk ratios, then the trade plan is executed without any emotional disturbances.

    Stick a note on your computer that will remind you to take small losses often and quickly rather than wait for the big losses.
    What are your experiences? Share them with us or share this post with others.

    Last update: 10/07/20
  • The Dangers of Emotional Trading And How to Avoid That

    The Dangers of Emotional Trading And How to Avoid That

    2 min read


    Trading is less a business and more psychology from which your success or vice versa on Forex market depends. Even if you have decided to switch to systematic trading, this does not diminish completely the dangers of emotional trading and emotional pressure when you are deciding a trade.

    Often, Forex traders have the belief that only a complete absence of emotions can help during trading. Still, fear, uncertainty, greed, hope, faith, regret, and happiness inevitably follow the process of trade and may cause the dangers of emotional trading.

    Combating emotions at the moment when your feelings overwhelm, means ignoring the sixth sense, intuition, and finally insight. And what happens? You have brain fog!

    Why? It is known that emotions also transmit the flow of information to us. We are guided by this information, we behave under their influence. But this is given to us to control our emotions and to replace one’s feelings with others.

    There are many ways to control emotions and avoid the dangers of emotional trading:

    First, it is possible to change your emotions by concentrating on another object. As a rule, this method is very effective. The thing that attracts our attention becomes real for us. You can consider the suffering of losses, or vice versa, examine the possibility of making a profit.

    Second, by changing your views and beliefs you can change your emotions. Every belief we gain over our lives is, in a way, a filter for us, which is affecting the knowledge of all information. All points of view accumulated throughout life have an impact on the interpretations we receive in our mind.

    Finally, the third way to change your emotions is by modifying physiology. Change in breathing, mimics, body position, color and speed of our voice, all this has a direct impact on the emotional part of not only Forex traders, but any person.

    Concentrate attention to avoid the dangers of emotional trading

    The concentration of attention is one of the most important components of our emotional state. The fact that you are focused on the Forex trading process becomes not only the subject of reality but also the acceptance of the facts. All activities influence the interpretation of events and therefore affect our emotions. All this guides our behavior, and decisions get an emotional connotation. In this case, it is necessary to define the priorities: what are you waiting for? Do you think about the possibility of losing? Or expect a profit?

    Those who see only losses are likely to hesitate to invest in the market for too long and may even miss the transaction. But once they decide to enter the market, they quickly earn profits. Trading is an attempt to balance the contradictions. The trader should focus on profit and loss and try to balance them. The trader should focus on the likelihood of his/her methods and information provided by the market because they are the only ones that are correct and reliable.

    Physiology and the dangers of emotional trading

    It has been proven that our body manages our emotions and that emotions influence our thoughts. The easiest and most effective way to change your emotional state is to change your physiology – speed, and depth of breathing, voice or even your pose.

    Pay attention to your attitude, how you sit, breathe, and whether the muscles of your face, shoulder, or whole-body tense. If you feel sick, you should sit more comfortable. Fully simple physiological manipulation can be an effective way of controlling your feelings.

    Control your emotions, this will definitely make you a more successful trader!

    Understanding Fear

    When a trader gets bad news about a certain stock or the general market, it’s normal for the trader to get apprehensive. But at the same time, you must be clever, you must avoid the dangers of emotional trading.
    The dangers of emotional trading
    You need to understand what fear is: a natural reaction to what they perceive as a threat. In the case of traders, to their profit or money-making potential. Quantifying the fear might help. But you as a trader should consider pondering what you are afraid of, and why you are afraid of it.

    Yeah, I know! This is not easy, and you need practice, but it’s necessary for the health of an investor’s portfolio.

    Greed Is Worst Enemy

    “Pigs get slaughtered.” is an old saying on Wall Street.

    This means that greedy investors are hanging on to winning positions too long, trying to get every last tick. Greed can be devastating to returns. A trader with greed always runs the risk of getting whipsawed or blown out of a position.

    Greed is often based on an instinct to try to do better, to try to get just a little more.

    The first instruction is: A trader should develop a trading plan based upon rational business decisions, not emotional caprice or potentially dangerous instincts. A good trader should have trading rules and plans.

    Why are trading rules and plans so important?

    Before traders feel the emotional or psychological crunch, they need to create trading rules. That will keep your heads in the right place. You should lay out guidelines based on your risk-reward tolerance for when you will enter a trade and exit it, whether through a profit target or stop loss. The emotion is not part of the equation. It would be also wise to consider setting limits on the amount you are willing to win or lose in a day. If the profit target is hit, you can take the money and run. But if losing trades hit a predetermined limit, you can roll your tent and go home, preventing further losses.

    Every single trader should be able to read a balance sheet or a chart. But there is a psychological component to trading that shouldn’t be overlooked. You have to know how fear and greed can impact trading. That’s why you should exercise discipline, and develop trading rules and plans. Never forget that part of trading.

    If you have any experience with this, let us know. Share it all.

    Risk Disclosure (read carefully!)