Learn Forex Trading – Five Tips to Make Money Fast In South Africa. This article is about how to make money with FOREX trading, and we’ll offer some alternatives to conventional investment advice. Why? Because most FOREX traders follow the norm and make average gains, whereas this article is about making spectacular gains and making money quickly from FOREX Trading!
We’ll assume you know how to trade and that you’ve developed a FOREX trading strategy that you’re happy with and can stick to.
With simple changes in trade selection, money management, and mindset, we’ll show you how to transform your system from making average gains to making spectacular gains.
Let’s look at how FOREX trading can help you make money quickly in South Africa.
1. Embrace Risk and Volatility with Joy
Volatility is incorporated into all good FOREX trading systems.
You can’t have a profitable FOREX trading method unless you’re willing to take calculated risks and lose money – if you can’t accept risk, don’t trade.
Many traders avoid a market because it is too risky, but risk can also mean reward! If you are a trader who dislikes volatility, you should look for something else to do.
Trading involves drawdowns; it is the volatile markets that make FOREX trading exciting and profitable.
A well-informed FOREX trader views a drawdown as an opportunity rather than a threat.
Remember: high volatility equals high potential!
2. Trade on a regular basis
Many traders trade frequently and prefer to be present in the market at all times. They believe that if they are not in the market, they will miss a move, or that by trading more frequently, they will make money – both of these beliefs are incorrect!
The best risk-to-reward opportunities in FOREX trading occur only a few times a year, and you should trade infrequently.
Concentrate on the trades that bring in the most money.
3. Do not diversify your portfolio.
Diversification is a widely held belief among most Forex traders, but it will not make you money quickly; in fact, it will do the opposite.
4. Financial Management
You might think we’ve been a little hasty so far, but that’s not the case.
We’re concentrating on the BIG opportunities that will allow us to make significant gains, which is why money management is so important.
If you’re going to take a chance, keep it under control – risk as much as 10% per trade, but increase your chances of success by:Purchasing options at or near the money to give you staying power and avoid being stopped out.
Many traders lose because they were stopped out by a volatile counter move, not because they were wrong about market direction. Options will give you staying power. Many traders begin trailing their stops to close, only to be stopped out – despite the fact that the trade continues to make spectacular gains. Avoid this trap by keeping your stop in its original position until the trade is well in profit before moving it up.
You want to make money quickly and are trading selectively, so have the courage to take a risk on a trade that looks promising and milk it for all it’s worth.
5. Recognize the Value of Compound Growth
Understanding the power of compound growth in FOREX trading is the fastest way to make money. For example, if you aim for a 50% annual return on your trading, you can grow a $20,000 account to over a million dollars in less than ten years.