Forex for a trader
How to become forex millionaire

How to become forex millionaireHow to become a millionaire with FOREX. The Foreign Exchange or FOREX is the largest market in the world. The biggest traders on the currency exchange market are governments, banks, and corporations. More money is traded on the FOREX in one hour than is traded on the New York Stock Exchange in one day. With all this money flying around it isn't hard for some of it to land in your pocket. Currency trading is very simple in comparison to the NYSE. FOREX only has about 30 currency pairs vs. the NYSE's universe of thousands of stock offerings. In FOREX trading, currencies like the dollar and the euro are paired with each other in order to produce a buysell option to the trader. How FOREX Trading works. When you're playing the FOREX market there are two choices: buy or sell. Since there are only about 30 or so currency pairs(example: British Pounds vs U. S. Dollars or Euros vs Swiss Francs) the market isn't very wide. A normal trade goes something like this: Say that 1 euro is worth $1.30 U. S. . From this price you can either buy euros, hoping it will go up higher, or sell euros, hoping it will go lower vs the dollar. When you make your trade you buy or sell in 'lots'. A lot is a larger block of money that your brokerage is offering a piece of. The overall size of a lot is not relevant to trading FOREX accounts because you determine what price to put on a currency price move. Since currency prices move very slight amounts the pennies are sub divided into 'pips'. These are hundredths of a penny in the case of the USD-EUR pair.

So using our example earlier; the Euro is worth 1.3000 and it goes up to 1.3025, that's a move of 25 pips. When you place your trade a pip can be worth 1 penny, 1 dollar or even more. That 25 pips could be worth 25 cents, 25 dollars or more. When you close your order the money is yours. Simple. Setting up a FOREX account. The are dozens of online FOREX brokerages. These brokers make trading FOREX simple fast and easy. I am a fan of one called IBFX but most of the brokerages are the same with a few slight differences like deposit methods and minimum balance.

I would look at a few before deciding to open a live money account. Once you've decided on a broker you'll download an account interface program, sort of like a control panel. These programs allow you to monitor all aspects of the currency markets from real time charting, to news headlines, to your trade execution. FOREX interfaces can monitor your trades and even automatically place them for you. Without these great programs trading online wouldn't be as fun. When trying out any FOREX online broker always open a demo account and get a full understanding of their software and client relations. I prefer my broker be located in the United States, that way I retain at least a slight amount of recourse-ability. Develop a system of Expert Advisers. Expert Advisers sound like people who tell you how to trade, but in reality they are automated trading programs that execute trade for you. Expert Advisers are computer algorithms that are programmed to read a certain market condition and execute a trade in response. They can be extremely profitable but you must understand that Expert Advisers are like golf clubs: They work as long as they are used under the correct FOREX market conditions. Expert Advisers are easy to find. Many are published for free and available in your FOREX Interface program. There are also independent programmers who are perfecting entire systems of FOREX trading centered around these Expert Advisers, they charge hundred to thousands of dollars for these simple programs. The idea behind the big price is the promise of big returns.

Surprisingly some of them work extraordinarily well. I am a firm believer that it is very easy to make money on the FOREX. The hard part seems to be keeping it once you've made it. Since FOREX accounts are based on how much money you put into them, there is always a chance that a bad decision can wipe it all out quickly. Very turbulent market moves can happen with major banking news, like an announcement of a government bailout. This can send a currency pair rocketing hundreds of pips. To avoid losing all you money you need to use money management. Money management is the practice of not leaving yourself exposed to wipe outs on the FOREX. The easiest form of money management is to take your profits and move them into a separate FOREX account. That way if account A is wiped out account B still has your profits.

Sort of like blackjack except in FOREX the odds that you'll win are much higher so the same bet over and over is actually a smart idea. Try a demo account for the FOREX. If you make money with the demo account, you will make money with a live account. I once put $250 into a FOREX account and had $1600 within a week. Solid money management and modest daily goals will make you a FOREX Millionaire in no time. How to become forex millionaire. . , - . , - , . . , , , , , , , , . , , , , , . , - ? , - , , . , , . , ? , , . . , , , . , , . , . : . , . , , . . - , . , . , . , . , , . , 2000 , 20000 , . - . -, . , , . : , . , . , ! . 1969. Quantum ( -). Quantum . – , « » – . , , . – . 1965 . , . . . 5 , . , . ( ), . . , . , , . – . 18 , , 12415 $ 2 $. 2003-2006 «Barclays» . « : 2 ». , . , . : - . 70- . , , 400 , 200 . , . , . , , , . , . 21 : , ? : . , , , - , . , . FXFINPRO CAPITAL . , . . Can You Really Become a Millionaire from Forex Trading? There are some questions that are frequently asked by novice traders: How much money can I make through Forex trading every month?

How many trade setups will I have every day and how many pips can I make every month? Can I start with a $100 account and grow it to a million? … Among all the frequent questions, there is one question which is asked by some novice traders more often: Can I Become a Millionaire through Forex Trading? I have two clear answers for this question and I explain about each of them in details: Making lots of money through Forex trading is completely dependent on some special conditions. When someone has the proper conditions, he can make millions through Forex trading. When he doesn’t have the proper conditions, he will do nothing but wasting of time and money. – What Are Those Conditions? You can increase your wealth and become richer through Forex trading and become a millionaire or even a billionaire. However, if you are among those who want to turn a $500 or even a $5000 account into millions, then I have to tell you that you will have a hard time. I am not saying that it is impossible to make millions with Forex. Anything is possible in this world. However, you have to be patient, because it can’t be done overnight, or even in one year. You will be faced with some challenges that finding a good broker that doesn’t cheat you, is the biggest one. Forex brokers don’t let you grow your account consistently, because in most cases, your profit is their loss. – Forex Is Not a Get-Rich-Quick Scheme.

Currency trading is not an easy way of making money and making a living. It is the same with the stock trading and all the other kinds of tradings and investments. To make money consistently through Forex trading and maybe to become a millionaire finally, you have to pass some important stages. There are so many jobs that you can follow and become a millionaire. It is not the job that has to make you a millionaire. It is “you” who has to follow the job properly to become a millionaire. For example, there are so many millionaire real estate agents and brokers in big cities like New York. However, there are a lot more agents who cannot even cover their monthly expenses in the same cities. All agents are in the same areas, have access to the same markets and customers, ruled under the same jurisdictions, use the same advertising media and… . But, how can some of them become millionaires, and most others fail to have even one sale per month? Whatever the reason is, it has nothing to do with the real estate business itself, because it is the same for all the agents and brokers. The reason is in the agents and brokers behavior, life and work style. – Behavior, Life and Work Style. Forex trading is like that too. It possible to become a millionaire through forex trading, as it is possible to become a millionaire through stock trading, programming, marketing, importing and exporting, constructing, and… The more important question is “how?” There are two things that you have to do to become a millionaire Forex trader: 1. First you have to learn and master the trading techniques. 2. You have to have a reasonable amount of capital to invest in the Forex market. You can’t become rich through growing a $500, $1000 or even a $10,000 account.

It is not even possible to make a living through such an account, whether you master the trading techniques or not. I’ve never seen even one single retail Forex trader who has become able to become rich or millionaire through growing a small account with a retail Forex broker. Even I’ve never seen a Forex trader who has been able to make a living like this. There is no consistently profitable and professional currency trader who trades through the retail Forex brokers. You have to have enough capital to trade currencies through a bank account. And, as the bank accounts are not leveraged, your capital has to be reasonably enough. Those who don’t believe in what I explained above, can spend some time and money on retail Forex trading through the retail Forex brokers. I am 100% sure that they will remember what I’ve explained above, and will be back to this site after losing a lot of money and wasting a lot of time: Trading Strategies Don’t Work If You Don’t Choose the Right Living Strategy. How Can You Become a Consistently Profitable Forex Trader? Unlike what most people think, it is not possible to start making money right after learning the Forex trading basics and a trading strategy. There is something very important that most people don’t consider: To learn how to trade Forex, become a consistently profitable trader and hopefully a millionaire, first you have to have a source of income that supports your currency investment.

I mean you have to have an income that covers your expenses and leaves you some free time to sit at the computer and learn how to trade with peace of mind. Unfortunately, you can’t make any money through Forex trading and any other kinds of trading when you HAVE TO make money and you have financial problems. – False Forex Success Stories. Most people think that they can learn to make money through Forex trading within a short time, and become a full-time Forex trader who makes thousands or even millions of dollars. This is is not true at all. There are so many false Forex millionaires stories over the Internet. Be careful not to be deceived by them. None of the real millionaires or billionaires, like George Soros, have made their wealth through full-time Forex or stock trading: How Did George Soros Make His Money? They are experienced business people who make a lot of money through several sources of income they have. Then they invest a portion of their wealth in currency, stock, real estate…

markets to increase their wealth: A Short Term Investment Strategy That Makes You a Millionaire. This is how they’ve become millionaires or billionaires. None of them have achieved this through full-time Forex or stock trading and with retail brokers. Therefore, if you like to become a millionaire, first you have to have a good source of income that makes a reasonable amount of money that not only covers your expenses, but also leaves some money for your trading and investments. Then you can start learning how to trade. You have to keep on learning and practicing until you become a consistently profitable trader. There are two ways to do that. – The Hard and the Easy Way. One way which is the harder and in most cases the impossible way, is following too many trading strategies, robots and time-frames, and sitting at the computer for several hours per day. That is the hard way which can hardly take you to your destination. The simpler and easier way is learning the Forex trading basics, and then a simple and strong trading strategy.

Then you have to master your trading strategy through demo trading. When you succeed to make profit consistently for 6 consecutive months at least, you can open a small live account and start practicing with it. If you can make profit consistently for 6 consecutive months with your live account too, the way you could make profit with your demo account, then all you have to do is that you keep on trading with your live account to grow it. However, you will be faced with another problem at this stage which is finding a good broker. Unfortunately, it becomes harder every day to find a reliable broker. Finding a broker that allows you to grow a small $5000 account into a reasonable amount of money, is not that easy, and is one of the challenges that you will be faced with when you want to become a millionaire Forex trader. However, there is a solution for this problem. – You Need a Source of Income. Forex trading is not a full-time job. It is not a business as well. It is an investment opportunity. You should already have an income to become able to invest in the currency market. You can keep on making money with the source of income I explained above, to save a reasonable amount of money to open a bank account and start trading with it. Trading through a bank account will have a lot more advantages compared to trading through Forex brokers. (Please refer to the articles I listed above.

) The only problem of trading through a bank account is that you have to have a lot of money because banks don’t offer any leverage. Therefore, to become able to trade through a bank account, you have to have a lot of money already. That is why I emphasized on having a strong source of income earlier in this article. You can’t become a millionaire Forex trader without a good income and backup. Turning a small $5000 account into a million dollar account is possible theoretically. You can do it slowly and surely when you become a consistently profitable trader and you have enough patience. However, Forex brokers don’t let you do that in reality. Because of the same reason, we have some programs to help our followers to create a reliable and strong source of income while they also learn how to trade Forex. While they are learning to become consistently profitable Forex traders, they create a good source of income through the other systems we introduce (learn more here). When they become a consistently profitable Forex trader finally, they have enough money to open a professional live Forex trading account with a bank to trade professionally and grow the money they make. This is how they can become a millionaire Forex trader while they also have some other good sources of income to support their Forex and stock trading investments. So, the answer of this question that whether it is possible to become a millionaire through Forex trading, is in the facts that I explained in details above.

Be careful not to be deceived by the scam mentors or brokers that encourage you to open small $100 or $500 accounts with the high leverages like 500:1 or even 2000:1 that some market maker brokers offer these days, to turn your money into millions within a short time. They are there to make money from your losses, not to make you a millionaire. Just before you go, did you check This System? Make sure to do it now, otherwise you will regret. Read related articles: + Click Here to learn who we are and why this site was created. + Click Here to receive our eBook for free. Hi Chris What are your thoughts on NZDUSD daily as a forming trade? I think the market is exhausted; strong break of BB; if current candle closes as strong bullish this looks a strong long entry. This is my first day of reading the charts per your strategy, so would welcome your comments. Thanks. Welcome to LuckScout. The pattern is not strong enough so far. Let’s see how the current candle will close.

I was thinking about the same thing as Adam about NZDUSD, but NZDUSD just broke monthly support and has not really moved down yet, so I am not sure. Chris, about USDCAD, for the last bearish setup you scored it 98. There is another one forming in daily chart. Hi Adam & Stanley, Both the latest setups you guys mentioned on Nzdusd and usdcad are not strong setup. Will be dangerous if we enter ?? Hi Chris , This is my 1st comment on luckscout .. thanks for the gold valued articales.. i m still reading on ur articales . As “Adam” mentioned above where we can see lower bollinger band breakouts On the NZDUSD ? even 14022017 & 15022017 candles are not in enough breakouts for strong trade setup …. 17022017 candle also bit strong for bearish .. Please correct me if i’m wrong .. Thank you, this article is another big motivation for us. I would like to ask you about NZDUSD, I think on monthly time frame we are on support line, and on daily – nice bullish engulfing are forming with strong LBB breakout, but we must wait for closed. Chris, I opened a short position on NZDUSD based on the DBB system on the weekly timeframe. Now, a bullish engulfing pattern is formed at the daily chart.

I do no think that this setup is strong mainly due to the candle’s long upper shadow. However, what does this mean for my already open position? Should I close it due to the presence of the long setup (although weak) ? Today most of my open positions (based on DBB) hit the SL. When I looked back I saw that in most cases there was a weak (no BB breakout or weak candles) setup formed with the last two candles. Please consider this as a general question. I have read many times your strategy for maximising profits by opening two positions. Do you use a weak setup as an indication that it is time to close the second open position? The upper shadows of the daily candlesticks tell me that Bears still have the control. So the price can go lower. However, holding or closing of the position is your own choice and is what you have to decide about. > Do you use a weak setup as an indication that it is time to close the second open position? When the position has made a good profit, yes. But when the trend is strong and the weak setup is just formed as the first reversal, then I hold the position. As others have mentioned the USDCAD is looking like a potential trade but seems to have 2 negative points.

Long tail on the second candle which seems to be because it is stuck on the middle band on the 4hr chart. It also seems like USDCAD still has a bit of steam behind it, with a constant zigzag in an uptrend movement. So far it doesn’t look like a 100 gauge trade. You are right. So far USDCAD has not formed a 100 setup. Uptrend is still too strong. Very nice article. Thanks for the motivation. I thought today would throw up some strong trade setups across a few of the pairs. But as we approached the close, many of the candles developed long shadows which voided most if not all the setups. I can’t see any strong trade setups on the daily charts, although we may get a few from the yen crosses on the weekly very soon. Do you agree? Or have I missed a pair? I don’t see any 100 setup either.

Seems like AUDJPY is about to touch 50 day moving average. Although MA is not steep but might have long setup ? 50SMA direction is good. We have to wait for the price to retest and forms a buy signal above it. hi chris, just want to know if i should double my demo account before i go into live account? or i just have to be positive for 6 months ? You have to be able to repeat your success consistently and consecutively for 6 months. If you double your account in this process, even better. However, depend on your trading style, you can make for example 5% profit per month which is great. You have to repeat the 5% profit every month for 6 months at least. If so, your account will not be doubled, but you have repeated your success consistently.

This is what you have to do. Hi Chris, thank for the sma50 system. It is really simple to understand but to use it in trading need some guide and practice. Last month there is no 100 score set up, is it normal for your point of view? You are welcome. It happens rarely that a month comes and goes with not even one 100 setup. Fruitful months will always come. We will share more strong trading systems little by little that enables the traders to have trade setups every month. I located a triangle pattern on EURJPY 4H and it broke above resistance line, it went up but then it went down recently. I located 2 SR Lines (closed price & highlow price), but I got confused whether this pair has broken the support line (which shows that the resistance line wasn’t valid), or it’s just currently retesting the broken resistance line?

I know I can wait to see how it goes later, but I guess something similar will happen again one day so I would like to hear an opinion from an experienced trader like you. Thanks a lot Chris! Support lines look OK, but the resistance line doesn’t look like a valid resistance, because the second point that you used to plot the line is too far from the first point and it is not chosen from a strong high. The high has to be stronger. In spite of this, the upward movement was not that bad. We cannot expect to see a too strong trend forms after each breakout. Reference to the resistance line: So when you say “the high has to be stronger” means candle need to be big regardless of whether its bullishbearish. Also, as you can see market actually reacted to these lines. I originally thought that as long as market react to your lines it is valid. It is not only the matter of the candlesticks size. Several candlesticks has to participate in creating a high or a low. The “peak” and “valley” has to be strong and more visible than the other highs and lows. Price can react to any line, as weak trade setups also make the price move accordingly. But we wait for the too strong trade setups to have a higher success rate. Therefore, we have to follow the strong lines too. Thank you Chris.

It sounds like LuckScout will be alive for quite some time. I am sure to follow till the last day!! Thanks once again. Thank you too Ted. thank you so much sir for your priceless lectures. my question is this: how were you applying the lot size(s) to grow the $1000 account to multi millions in five years, in the use “this calculator” you published. i found that info extremely helpful. please i would appreciate your reply. thank you sir. You are welcome. The lot size is not considered in that calculator. It merely calculates the balance and monthly income based on the monthly profit a trader makes.

This is great, but almost every trader say it’s impossible to make more 3%month, is it because they have too many lose trade due to over-trading or because they find little opportunity to trade in a month? How do you know that they are traders? Thank you for this article and your motivation words ?? I believe it’s possible to become a millionaire trading , with accurate education and discipline as taught by Mentor Chris. Thanks Boss Chris, God bless you. Hi Chris, what advise will you give to someone who is dying to join the Millionare’s Club but cannot because the ?99 per month constitutes almost 35% of his monthly income? Thanks for your good works. Sorry to hear that the monthly fee is not affordable for you. Of course it is not ?99. It is $99 ?? We will think about a solution for people like you. Thank you for following us. You made a comment about brokers not letting you make a lot of money trading. How do you feel about futures and your strategies. CME and the futures markets are a lot more regulated in the US. My CM account is being closed so I’m researching where to open a new account. Experience have proven that regulation can’t prevent the brokers from cheating the clients. Therefore, you’d better to start with a small account to test the water first. It was very depressing news when I heard on Feb 9 that CM is being forced out of the US markets.

I have an account with them since Jan 2016, not a long time, but they seem to be okay and their spreads are pretty good – much better than those of. com (a subsidiary of GAIN Capital) where the accounts will be transferred. Now retail traders in the US have even fewer choices while the remaining brokers rejoice over the demise of one of their largest competitors so they can consolidate even further. Goldman Sachs was recently ordered to pay a $120m fine by the CFTC for attempted manipulation and false reporting of ISDAFIX benchmark rates, a global benchmark for interest rate products. Wells Fargo was caught late last year creating millions of fake accounts for their customers so they could charge them fees. I don’t remember much happened to Wells Fargo as a consequence of such frauds other than the CEO testifying before Congress and some employees fired. I don’t think what CM did was worse than what Goldman and Wells Fargo did, but the big banks got off with not even a slap on the wrist while CM was forced to close up shop in the US. Where’s the standard in enforcement when apparently the regulators can do whatever they want and not have to account for their actions? Too bad CM, like most businesses in the US, does not have people in high places, or they didn’t make the right donations, and the result is they can lose everything overnight that they have spent years building. Join Our 24,000+ Loyal Followers & Receive Our eBook For FREE Now! Click Here to Enter Your Email Address and Check Your Inbox. Join Our 24,000+ Loyal Followers & Receive Our eBook For FREE Now! Click Here to Enter Your Email Address and Check Your Inbox.

What Is the Proper Risk Reward Ratio in Forex Trading? It is very easy to find hundreds of articles on riskreward ratio in forex trading. But the problem is that most of those articles are not written by the real and professional traders. By “real and professional traders”, I mean those who are consistently profitable currency traders and currency market investors. Most of these articles are written by freelance writers who are paid to write articles. Or maybe they are bloggers and webmasters who want to drive some traffic to their blogs and sites. Most of these writers have never placed any order on the market throughout their lives. The bigger problem is that novice traders believe each and every word of these articles, just because they are published on the Internet. They don’t know that the directions that these articles give, are not applicable in live trading at all. After reading these articles, novice traders try to apply them in their trades. And, after such a long time of trial and error, they will think that they are not able to follow the trading rules. So they give up. But the problem was somewhere else: It is the information and directions of the articles that could not be applied in live trading. For example, in most of the articles you read about riskreward ratio, it is strongly recommended that novice traders should not even think about taking positions with a riskratio of as high as 1:1 or even 1:2 (I will explain what these numbers mean later in this article), and the minimum riskreward ratio of the positions that new traders take should be 1:3. There is nothing wrong with it so far. But the problem is that these articles never clarify whether traders should have a low riskreward ratio through having wide targets, OR, by having tighter stop losses. As nobody likes to lose, specially new traders, they all think that they should make their stop loss as tight as possible to have a low riskreward ratio trade, whereas this is a big mistake.

No matter how tight or wide the targets are, a trader cannot fool around with the stop loss. Choosing the stop loss has its own rules that cannot be ignored and broken. If you set your stop loss tighter than what it has to be, you will be stopped out easily even when your position is correct. Something that looks even stranger in these articles is that they emphasize that “novice traders” should not take positions with 1:1 or 1:2 riskreward ratios. Does it mean that experienced traders can do it? Are there different trading rules and techniques for novice and experienced traders? The Same Rules for Everybody. Maximizing the profit and having 1:3 or 1:5 trades can be done by professional and experienced traders. However, there are some technical and emotional difficulties in front of the novice traders to do that. For example, to achieve a successful 1:5 trade, you may have several losing trades (I will tell you why), unless you know how to choose the strong trade setups. This is not a problem for professional traders at all. But for a novice trader who is learning the techniques and has to build hisher confidence at the same time, having losing trades can cause lack of confidence and excessive fear that prevents himher from advancing to the next steps. So we cannot believe and apply whatever we read over the Internet.

There are zillions of systems, techniques, indicators, robots and… that are absolutely useless when it comes to live and real trading. What Is RiskReward Ratio? After the above introduction, let’s see what riskreward ratio is and why it is important in forex trading. Risk is the amount of the money that you may lose in a trade. If you’ve already read the money management article, you know that we should not risk more than 2-3% of our capital in each trade. It means when we find a trade setup and we find a proper place for the stop loss, we have to choose our position lot size in the way that if the market hits our stop loss, we lose maximum 2-3% of our capital. For example, let’s say we have found a trade setup with EURUSD that has to have an 80 pips stop loss. The account size is $5000. If EURUSD hits the stop loss, we should lose $150 which is 3% of our capital: 0.03 x $5000 = $150. It means 80 pips equals $150 (you can use the position size calculator I have on the money management article). This $150 is our risk. But what is the reward? Reward is the profit that we can make in a trade.

In the above example, if we choose a 160 pips target for our trade and EURUSD hits this target, we will make $300 (when 80 pips equals $150, so 160 pips equals $300). This $300 profit is the reward. So what is the riskreward ratio of this trade? It is 1:2 because: The larger the profit (target) against the loss (stop loss), the smaller the riskreward ratio which means your risk is smaller than your reward. For example, if your stop loss is 20 pips in a trade and your target is 100 pips, your riskreward ratio will be 1:5. What Is the Recommended RiskReward Ratio in Forex Trading? 1:3 or 1:5 riskreward ratio is achievable when (1) the market trends after forming a strong trade setup, and (2) you succeed to enter on time. In most cases you should be able to hit the top and bottom of the trends, no matter on what time frame you trade. Or if you enter at the middle of the way, the trend should be strong enough to give you another big movement and make a profit which is 3 or 5 times bigger than your stop loss. You can do that. But there are just a few problems: 1. Markets usually trend only less than 30% of the time.

2. Some trends are not strong enough that if you enter with delay and while the trend is at the middle of the way, they can hit a target that is 3 or 5 times bigger than the stop loss. 3. There are many cases that you miss the trends. You hesitate to enter, and so you miss the chance. Or, you think you have found a trend whereas you are wrong and it returns and hits your stop loss, and things like that. So you lose in many trades, because you want to catch a big one. Therefore, in reality, you either have to lose in many trades, or, you have to have many of your trades closed at breakeven by the stop loss (because you will have to move the stop loss to breakeven when you are in a special amount of profit), or, you have to stop trading for such a long time and wait for a strong trend, until you can have a 1:3 or 1:5 trade. Is It Possible to Catch the 1:3 or 1:5 Trades? How is it possible to catch a 1:3 or 1:5 trade without losing so many trades or waiting for so long? If you take a position with 1:3 or 1:5 stop loss to target ratio, and then you wait for it to hit your stop loss or target, you will have so many losing trades before having a winning trade. The reasons are mentioned above. 1. Moving the Stop Loss Further.

One solution is in moving the stop loss. You should not let your stop loss remain at its initial position. To have a 1:3 trade, the distance of your entry and your final target should be split into 3 parts (at least), while each part is equal to your original stop loss value. For example, if you have a 50 pips stop loss, you should have a final target of 150 pips that should be split into three 50 pips levels. Then you should move your stop loss in three stages. In this example I assume that you take a 3% risk in each trade: 1. If the price reaches the first 13 level, you should move the stop loss to breakeven. At this stage, if the price goes against you and hits the stop loss, you will get out without any profitloss, BUT you should consider that you had an initial risk of 3%. 2. If it reaches the 23 level, you should move the stop loss to 13 level. At this stage, if the price goes against you and hits the stop loss, you will get out with a profit that equals your initial risk. For example, if your stop loss has been 3% of your account, you will get out with a 3% profit. Therefore, such a trade will be ended as a 1:1 riskreward position. 3. If it becomes so close to the final target, you should move the stop loss to 23 level.

– Hitting the Final Target: Then you have to wait until it hits the final target or returns and hits the stop loss. At this stage, if it goes against you and hits the stop loss, you will get out with a profit which is twice of your initial risk. For example, if your stop loss is 3% of your account, you will get out with a 6% profit. Therefore, such a trade will end as a 1:2 riskreward position. If the price hits the final target, your trade will close with a 9% profit. Therefore, you will have a 1:3 riskreward position. So, to have a 1:3 trade, you will have some -3% trades that are those positions that hit the stop loss at its initial position. You will also have some 0% trades that are those trades that hit the stop loss at breakeven. Some of your trades will be +3% trades that are the ones that hit the stop loss at 13 level. Some will be +6% trades that are the ones that hit the stop loss at 23 level. And finally, some trades will be +9% trades that are the ones that trigger the final target. 2. Taking the Too Strong Trade Setups. Another solution is in taking the too strong trade setups on the long time-frames like daily, weekly and monthly.

Wait for the too strong trade setups. They are usually strong enough to move the price for hundreds of pips, and so you can have wide targets. How Many of Your Trades Will Be -3%, 0%, +3%, +6% and 9% Trades? It is impossible to answer the above question. It depends on many factors, including the trading strategy and the markets condition. However, there is something that gives us a clue about the number of our 1:3 and 1:5 trades. It is the fact that says market trends only 30% of the time. It goes sideways 70% of the time. To have 1:3 and 1:5 trades, we should have a strong trend, otherwise the price hits our stop loss. It stops your position before reaching the final target, no matter what time-frame you use to take your position. No need to remind again that in any of the -3%, 0%, +3%, +6% and 9% trades, your risk is the same which is 3%. The first conclusion is that taking the risk and the position is up to you. However, it is the market that determines how your trades will end. This is something that all traders, specially the novice ones, should consider.

When you read in different websites and web pages that you should take the 1:3 and 1:5 trades only, then you should consider that you really never know how many of your trades will end as 1:3 and 1:5 trades. Never Break Any of Your Rules. I set the stop loss of my positions based on the technical analysis rules. I will never break any of these rules. Some traders think that my stop losses are too wide, but they are not. Some traders always have a fixed stop loss size. For example, any positions they take, with any currency pair and any time-frame, has a 120 pips stop loss. But, I mainly follow the rule of thumb we have for setting of the stop loss. The rule says that you should place your stop loss in a position that it becomes triggered only when the direction you’ve chosen is completely wrong. So, when I want to set the stop loss, I ask myself under what condition the position I have taken will be wrong? The answer I give to this question is the position of the stop loss. Are you new to forex trading? Then learn how to take the strongest trade setups on the longer time-frames.

Read these article carefully to save a lot of time and money and become a profitable trader sooner: Proper Risk Management in Forex Trading. You can sit at your laptop, trade forex and make a lot of money from the comfort of your home. This is too exciting and attractive to everybody. It looks like a very easy business at the beginning. You start reading about forex and soon you will realize that forex really makes money. First, we are eager to find something that makes money. When we succeed to find it, we think about the ways that make more money with it. You ask yourself whether it is possible to make more money within a shorter time. Human is infinite by nature. We don’t want to be limited at all. We want to be free to do anything we want. When it comes to forex trading and we see that it can potentially make money, we want to maximize the money it makes. One of the ways that comes to our mind to make more profit within a short time, is taking a bigger risk. This is a way that comes to the most of the novice traders’ minds, specially because many of them can not open a live account with a reasonable size. However, it is a risky way. I will tell you why. There is a much better way to grow your account faster.

Before talking about that way, please see the below examples to see how taking a high risk can “theoretically” grow your account much faster, but can practically wipe out your account. If you open a $1000 account and make 5% profit per month, your account balance will be $3,225.10 after 2 years, if you don’t withdraw any money and keep on making 5% profit every month for 2 years. If you keep on trading that way, your account balance will be $18,679.19 after 5 years. I don’t say that you can consistently make a 5% profit for 5 years. You will have some losing months as well. These numbers are just examples. If you can neither make more profit, nor you can open a larger account, you have to be happy with the rate that your account is growing, or you have to find a different way to grow your account faster which can be more riskier as well. If you open a $50,000 account, and make the same 5% profit per month, your account size will be $161,255.00 after two years (of course if you don’t withdraw any money for 2 years). Then you can keep on making 5% profit per month, and withdraw $8,062.75 every month. That is not bad. Indeed, it is a good monthly income. But the problem is, most of you cannot open a $50,000 account at the beginning. So the only option that comes to your mind, is taking a higher risk.

That is when the greed takes the control and you can lose your shirt because of it: You think you open a $1000 account with a 500:1 leverage. You can take a 1 to 2 lots positions with such an account without any problems. Then you calculate and will see that if you open a $1000 account and make 100% profit per month (you double your account every month), you will have $4,096,000.00 after one year or $16,777,216,000.00 after two years (of course if you don’t withdraw any money). Wow! It is amazing. It is mind blowing, isn’t it? You can become multi-millionaire within 1 to 2 years, by risking only $1000. Wrong! Having such a big amount of money in the trading account you have with a broker, is possible only on the paper, not in reality. Read these articles: The other thing is that it is impossible to make a 100% profit every month for several months or a few years while your account leverage is 500:1 and you are risking too much. Those who try to double their accounts every month, can get lucky to do it once or twice, but then they will wipe out their accounts the next month. To double your account within a short time, you have to take too much risk that will result in big losses finally. If it was that easy, now we had so many millionaires in the world who would do nothing but trading Forex from the comfort of their homes.

The problem is 99.99% of the traders decide to turn a small amount of capital to a huge wealth, while they have not properly learned to trade yet, and they have not passed all of the learning stages. They open an account and try to double it every month after a few weeksmonths of learning and practicing. Therefore, they lose their money and blow up their accounts. Many of these traders top up their accounts a few times, but the same thing happens over and over again. Why? Because they don’t know how to trade. They want to double their accounts every month through Forex trading, but they don’t know how to trade Forex properly. So… A sweat dream changes to a nightmare, and someone who wanted to become a multi millionaire within 1 to 2 years, gives up on Forex trading after losing several thousands of dollars. You should complete the learning stages first, open a live account, take a reasonable risk in each trade, manage your risk, position and profit, and grow your account slowly and steadily. 1. We have already talked about completing the learning stages a lot. You can follow the below posts carefully and you will pass the learning stages easily and without any headache: Become A Profitable Forex Trader In 5 Easy Steps. 2. Now, I assume that you have passed all the stages and you have repeated your success with your live account at least for 3 months consecutively. Above all, I assume that now you are patient and disciplined enough to wait for the strong and perfect trade setups.

So your success rate is really high. I mean you pick the trade setups that either hit the targets, or at least give you the chance to move your stop loss to breakeven. So you are now ready to grow your account. Start with a small account at the beginning. Don’t think that if you open a big account, you will shorten your way. Risking a larger amount of money creates harmful emotions that don’t let you trade properly. Your greed pushes you to open a larger account, and then your fear makes you blow up the account. 3. You should trade patiently until you double this account. I don’t know how long does it take you to do it, but be patient until you double your account. Then withdraw the initial capital and leave the profit in your account. You are now trading with your profit, and you are not risking your capital money. These are the articles you will definitely need to read: Just before you go, did you check This System? Make sure to do it now, otherwise you will regret. Millionaires in forex. There are many who have made their fortunes in forex.

The biggest haul in history is how Gorge Soros made his fortune. No. 1: George Soros Vs. The British Pound. In 1992 British pound exchange rate versus other European currencies was fixed by the bank of England. In order to maintain that value, the bank set their interest rate at a high level, similar to the one offered by Germany. However Germany's high interest rates were appropriate for a robust economy in need for a cool down to prevent a spike in inflation. Britain was in the opposite situation, with its economy in the doldrums. A Hungarian immigrant spotted this situation, decided that it was unsustainable and sold short 10 billion pounds. He made 1.1 billion US dollars. His name is George Soros. No. 2: Stanley Druckenmiller bets on the Mark - Twice. Stanley Druckenmiller made millions by making two long bets in the same currency while working as a trader for George Soros' Quantum Fund. Druckenmiller's first bet came when the Berlin Wall fell. The perceived difficulties of reunification between East and West Germany had depressed the German mark to a level that Druckenmiller thought extreme. He initially put a multimillion-dollar bet on a future rally until Soros told him to increase his purchase to 2 billion German marks.

Things played out according to plan and the long position came to be worth millions of dollars, helping push the returns of the Quantum Fund over 60%. Possibly due to the success of his first bet, Druckenmiller also made the German mark an integral part of the greatest currency trade in history. A few years later, while Soros was busy breaking the Bank of England, Druckenmiller was going long in the mark on the assumption that the fallout from his boss's bet would drop the British pound against the mark. Druckenmiller was confident that he and Soros were right and showed this by buying British stocks. He believed that Britain would have to slash lending rates, thus stimulating business, and that the cheaper pound would actually mean more exports compared to European rivals. Following this same thinking, Druckenmiller bought German bonds on the expectation that investors would move to bonds as German stocks showed less growth than the British. It was a very complete trade that added considerably to the profits of Soros' main bet against the pound. No. 3: Andy Krieger Vs. The Kiwi. In 1987, Andy Krieger, a 32-year-old currency trader at Bankers Trust, was carefully watching the currencies that were rallying against the dollar following the Black Monday crash. As investors and companies rushed out of the American dollar and into other currencies that had suffered less damage in the market crash, there were bound to be some currencies that would become fundamentally overvalued, creating a good opportunity for arbitrage. The currency Krieger targeted was the New Zealand dollar, also known as the kiwi. Using the relatively new techniques afforded by options, Krieger took up a short position against the kiwi worth hundreds of millions. In fact, his sell orders were said to exceed the money supply of New Zealand. The kiwi dropped sharply as the selling pressure combined with the lack of currency in circulation. It yo-yoed between a 3% and 5% loss while Krieger made millions for his employers.

One part of the legend recounts a worried New Zealand government official calling up Krieger's bosses and threatening Bankers Trust to try to get Krieger out of the kiwi. Krieger later left Bankers Trust to go work for George Soros. Situations like the one described before are not a black swan of the past. The press is filled with stories of currencies overvalued being restored to fair value; in the recent European crisis forex players brought the value of the Euro down when it was overvalued (from 1.3654 on April 14 2010 to 1.1925 on June 8, 2010, - 12.7% and back up again when it was oversold (from 1.1925 on June 8, 2010 to 1.3276 on August 6, 2010, + 11.3%). Central bank intervention to reach a desired value have not disappeared either, as the recent actions of the central bank of Japan and the central bank of China show. Predicting a fall or an increase is not a question of luck only, disciplines and strategies based on technical analysis help to understand short term fluctuations of a currency, while fair value measures, such as the Big Mac Index, help to spot currencies that are away from their underlying value and that will converge to that price in the long run.


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