Currency trading is one of the best ways to make money. Here are 3 tips to help you make money and keep it.
Here are your 3 tips for making money fast in currency trading:
1. Do not over-diversify
Never diversify too much.
There are times when diversification is a good thing, but many new traders are committing the mistake of excessive diversification. So much so that they really lose their concentration!
Now, even for the pros, they do not diversify excessively. Say you have traded in the last two months and you have made profits on only 2 currency pairs. May I suggest you stay with these 2 pairs until you really understand their quirks and their character. It takes at least a year because different seasons affect the course differently.
If you choose to diversify, choose a totally uncorrelated pair that you focus on. Upgrade your business skills before moving on, focus on one aspect before moving on.
2. Be a hunter! Act like a picker ...
The trade is very much like hunting and gathering. The hunters will wait for hours and hours before throwing themselves on their prey. This is how you will have to act. Wait until the trade is in place before you start. If it is not a confirmed kill, do not engage at all. In your trading plan, you will have several indicators telling you when to enter and exit the market. If only one of the indicators is off, DO NOT enter the trade.
Like the hunter, you have to wait for the right moment. As a picker, you must also wait for the profits to reach maturity before picking them.
Imagine that you own an apple orchard would you reap your fruits before they ripen or would you expect them to be fully grown? The same principle applies to forex. Wait until your profits are fully developed before going out and withdrawing your funds. This is the only way to make profits with bonuses!
3. Money management? Do you know what it is?
How aggressive should you be when you trade? How much do you have to risk your account every time you trade? Exchange judiciously by practicing good money management. The subject of money management is huge and unfortunately this article can only contain a lot of information. Download my free eBook for more information on this topic.