Forex trading is not an easy task specially when used with leverage. People will poetry forex trading is an easy task to sell you a expensive course that how they are going to make money not with trading. This is why its hard, specially starting small people will tell that you can become a millionaire by starting with $1000 which is not possible unless you take on a prop firm capital.
Most people will get you to believe that you can turn $1000 to millions within few years, which is not possible period.
But this is the correct way of doing it, and this is how we are doing it.
Step 01
First you need to start reading about finance books and about trading that you get your hands on the cheapest way of doing it through Everand it is a book reading subscription service provider for just $12 per month, they have very wide range of book related to trading. We have a different articles on which exact books you need to read so I’m not going to go very deep into it here.
Step 02
Market moves on three principals, which are fundamental data, Volume data and Technical data, most people will tell you that technical is the only thing that matters yes that would be correct if you are trying to do scalping which is a very risky strategy which is very hard to hard unless you are a high frequency trading algo, if you can make it good luck and make sure to connect it with a ECN broker to reduce the latency. If you don’t have a idea of what i just said its now time to read the rest.
Step 03
Now that we have established the very basics, you need to have a edge in the market to trade on which can be changed due to the nature of the market, if you can see a edge in the market when you have checked with past data, journaling at least next 10 trades to confirm if the trade is working or not. but if you find few trades here and there not making any profit that’s fine, if you are trading strategy is making a loss for 20 straight trades then its time to change the strategy.
Step 04
This is how you do the back testing your strategy, you need to invest in a trading view premium package, which is i believe about $10 per month which will allow you to replay the market based on date and time which is a gem to test your strategy since you are manually trading the market.
Step 05
By now you have a clear idea of, where to find trading books, you need a trading strategy to trade the market, and you know where to find the trading charts and how to back test based on the strategy. Here is an edge that actually still works in the market which is double tap to the previous supply and resistance zone which has about 60% accuracy in the long time being you will have about 40 trades that are loss making while having 60 winning trades so you have to make sure that you have at least 1:2 being you risk $1 to make 2 which is just amazing but only thing is to stick to the rules that you back tested with.
Step 06
The rules in the forex is a must to control how you place the trade to how you get out of the trade, so first write down the rules based on the strategy and back test is using the tradingview replay function, we have tutorial video on how to use the replay function here -> Youtube. Make sure to stick to your rules because trading purely psychological otherwise prices would not move as it does in most cases. Which is what we are going to capitalise on, so based on your strategy you have to stay with it otherwise you are going to lose money, this is very import even if you are feel you like you are going to lose the particular trade you have to place trade because it might turn out to be a profit that you just missed on it and when you think next trade is a sure profit but you lose on it, so you have to have a statistical edge not a your gut feeling. Remember charts are there to show where the prices are not some magical patterns that you can find trades on but just to show the prices, but i would say this, just imagine that you are in the market to buy an Apple iPhone 15 pro max with 1 TB, you know in the apple store they sell for £1,599, and there is some other place called Orange have it for sale at £1,499, would you buy or sell, you buy right!!. which is similar how you trade the market, in the above case you can just buy at Orange and sell for £1598, just to undercut the apple price by £1, so you can sell it fast.
But this is what market actually does, remember in the iPhone example we know that apple is going to keep their prices steady, but forex market will discount the price after you bought it, just imagine with this example, after you just bought the iPhone for £1,499 and just after you bought it apple announced that they are going to reduce the price of iPhone to £1,499, so in that case you are in loss, this is what could happen in the market. This is why the retesting of the price level is so import.
How about if you are going to buy something, have it come to you twice so when it come back to you for the second time you buy it, just to example it with iPhone example, you just wait the price to discount the value, and you know that other store also have to reduce the price, so you buy when the other store bring their value down to £1,399 so you can sell it back at £1,498.
But here is the problem with this strategy, what if the apple cut the prices again? this is why its so important to find the price based on the volume that has traded at the prices, how about this if there is so large demand at a one price and limited supply what would happen the prices of the iPhone at that price level, most certainly the price would explode right? you can see plenty of those if you looked in a chart where there are large candles. so we have to determine the prices based on the volume that the correct way of find the prices not on gut feeling. So if there is a large enough buyers at a certain price level would apple will cut the prices below that level? No right !!. That is what happens in the market if there are enough buyer for the sellers prices will settle around that price level which is called a supply zone.
So any strategy that you are going to play in the market has have the basic fundaments otherwise you are going to lose in the market.
Step 07
Here is why R:R so important in the market it because the fact that we cant be sure of the fact that prices will respect the level and move from that price level because 40% of the time we are going to lose money, so if a guru is telling you he is going to sell you a signal ask yourselves why doesn’t he or she has a PAMM account that provides transparency of his/her/they trading strategy is simply because if they are scamming you. So make to get at least 1.5 out of a trade that you risk, so every dollar you lose you have made $1.5 so you are in the green meaning in profit.
So i know it a long article, but after you have grasped the fundaments, technical and Volume from our tutorials which are 100% free and at a very high standard you can now open a brokering account for $1000. and we will tell you how to make $300 per year so that 30%, that about what 6 times what the US fed pays for their treasury. Only reason why you are making this much return is your using leverage. The market rewards only those who take the risk. So larger the risk more likely you are going to lose money and also more like to make money if you are right so you need keep that in mind. So you know just don’t waste money on Forex signals and gurus claiming to be forex geniuses. Some may have gotten lucky but in the long run you don’t really need it, just think why aren’t they manage your money with PAMM if they are soo good, why are they selling courses to make money, why not put money where their mouth is, that is because they just don’t have discipline to make money, rather they sell you are garbage course for $99 that is mostly typed by Chatgpt. So just follow our tutorials on YouTube for getting started in trading.
Step 08
Now that you have a clear idea, you can start creating a Broker account with trusted brokers with highest standards of customer service and regulations. Here are some of the industry best brokers you can choose the best from rank one to 5.
