If you want to engage in online forex trading, your goal is to make big profits – you have to risk more, so the only reason to trade is to make bigger profits. Most forex traders don’t do this because they don’t understand risk and reward, so here we will show you a simple method that anyone can use to make big forex profits.
first accept this
If you want to make money you have to take risks!
The higher the risk, the higher the reward, although the risk is not only related to the market traded, but also to the strategy of the traders.
While it may seem like you are risking more with the online forex trading strategy outlined below, you are actually taking calculated risks and trading the odds and this actually increases your chances of winning.
So let’s see how to do this.
1. Trade only the big trends.
Look at a forex chart and look for the really big trends, the ones that produce profits of $10,000 – 30,000 or more and you’ll notice:
They only come a few times a year.
With this forex trading strategy, these are the trades you are going to focus on.
If you like the adrenaline rush of trading and just trade for the thrill of it, play an extreme sport and read no further, this method is designed just to make money.
2. How to spot megatrends
Most forex traders don’t realize that the biggest trends of the year start with new market highs, NOT market lows.
This means that you should look for significant valid breakouts of resistance or support.
We do not have enough space to discuss the breakout methodology in detail; just go through our other articles but we will discuss a fact in relation to them.
Why Most Traders Can’t Buy Breakouts
Most traders don’t buy a break because they are obsessed with buying low and selling high, however the way to make money is to buy high and sell high.
When a currency breaks higher, they expect the pullback, but in really big trends, prices don’t pull back.
They then sit back and watch the trade disappear over the horizon.
You need to have the mindset that if the breakup happens, you go with it. Sure, you’ve missed the first part of the win, but history shows there’s usually much more to follow.
3. Trade the odds
You should not just buy a breakout, you should check that the price momentum is accelerating to increase the odds of success. For this you need some momentum indicators and two excellent ones are Stochastic and RSI – they are easy to use and very effective.
4. The difficult!
The difficult thing comes next, it is to have the courage to accept the enormous profit that the market is going to give you.
Most people just can’t do this. They become obsessed with making profits as profits unfold, they are not used to big profits and cannot accept them.
When normal volatility causes trend reversals, they panic and bank early, it’s better to have a small profit than none.
What happens next?
Trading is powered by making thousands, or tens of thousands of dollars and they’re not, but they could, if they had the courage to accept the reduction in open capital as normal market behavior, which it is.
Placing a stop on a breakout is easy (below the breakout point), maintaining the long-term trend is the hard part, and having the confidence to accept dips in open stocks, while focusing on the jackpot.
In terms of other ways to make money trading forex online, the above ideas are not commonly accepted, but don’t let that bother you, most traders lose!
eyes on the prize
If you think about the above, you are only trading the best trends, you are confirming the entry to increase the odds of success, and the risk is low.
Ultimately, it is the ability to accept downside risk in open equities and focus on the long term that will help you achieve extraordinary gains in the forex markets.