Make Cash Today

This article will show you how you can safely become a professional forex trader. It is not a get-rich-quick scheme or other such thing. This technique requires you to apply yourself and be dedicated to being successful. The steps are outlined below. It is assumed that you have no trading experience. However, seasoned traders can make use of this article as well.

Step 1: Learn to trade.

There are lots of resources available for learning to trade the Forex Market. Sadly, most of them are incomplete or created by people who are not themselves successful traders. Some, however, are wonderful and well worth the time and money. So how do you know which ones are worthwhile and which are not? Well, it is not easy to tell. However, I personally know of one highly successful forex teacher whose customers are seeing wonderful results. I highly recommend using such a mentor before trading live money in the forex markets.

Step 2: Practice on a demo account.

Once you have a sufficient amount of knowledge, it is time to open an demo account and learn to use the trading platform program. Practice placing market orders and closing them manually. Practice setting stop-loss and take-profit on existing orders to lock in profit or prevent losses. Practice placing pending orders (orders that get opened at a future price). Make sure you feel comfortable setting the proper trade size before sending your order. This is one of the most frequent mistakes that people make. They place an order of 5.0 lots, for example, instead of 0.5 lots and end up depleting their account quickly. Be sure to use the demo account strictly for learning your strategy and platform, and not to simulate live trading.

Step 3: Try a live account with a small amount of money.

There is a big difference between watching an open order on a demo account and watching the same trade on a live account. Your emotions have a strong influence in live trading with actual money. The only way to learn to manage those emotions and stay focused is by ACTUALLY TRADING WITH LIVE MONEY. Trading too much on a demo account may de-sensitize you and cause you to take unnecessary risks when you switch to a live account.

Many brokers will allow you to open an account with as little as $250, allowing trade sizes as small as 0.01 standard lots (micro lots). That means each pip will gain or lose you about $0.10, instead of $10 per pip for a standard lot. Although it is a small amount of money, you will still experience the emotional bombardment that comes with watching your money come and go during trading. It is very important that you get control of those emotions before you get to the next step.

When you can earn at least $10 monthly for 3 consecutive months, trading ONLY micro lots (where 1 pip=$0.10), then it is time to move on to the next step.

Step 4: Bring your account up to $2000 with a second deposit.

With $2000 in your account and trading only mini lots (where 1 lot=$1.00), you should now be able to earn at least $100 per month profit trading forex.

Step 5: Grow your account to an amount that will let you live off the profits from trading.

Now you have enough experience trading the forex markets that you can live entirely off forex if only your account had enough money in it. So let’s figure out how much is required to accomplish that…

Imagine that you need to earn $4000 per month to pay all your monthly bills. You already know that you need $2000 in your account to gain $100 per month. So that means you will require no more than $80000 in your account to generate $4000 monthly. I know it seems discouraging when you look at it that way, so you need to look at it differently.

Every time your account balance grows by $2000, your trade size needs to increase by 0.1 lots. It will take you as much as 20 months to earn your first $2000 profit. But once that occurs, your trade size changes to 0.2 lots and getting your second $2000 will only take 10 months. Now your trade size changes to 0.3 lots and reaching your third $2000 will take 7 months. At this rate it will take you about 8 years to increase your account to $80000. That’s by earning just $100 per month for every $2000 in your account. Approximately 5% of your initial deposit. Suppose you can earn $150 for every $2000, or 7.5%. You have just reduced your time down to 5 years! In fact, if you keep earning 7.5% until the 8th year, your account will have grown to over $467000! But that’s not the point for now.

What we have done is calculate the longest time it will take for your account to grow from $2000 to (as an example) $80000 so that you can quit working a job and withdraw $4000 per month from your forex account to live on. And in case you haven’t noticed, the quicker you can increase your trade size, the faster you will reach your goal. So let’s look at some ways to speed things up…

1. Earn more than $100 for every $2000 per month. Your account will increase faster and your trade size will increase sooner. Don’t go crazy with this because the more you trade the more you put yourself at risk of losing. But it’s not unreasonable to be able to gain $200 monthly for every $2000 in your account. I know people who routinely earn between 30% and 100% per month trading forex. But the goal for you is consistent reliable profits. So let’s stick to 5% as a minimum.

2. Deposit more money into your account each month as you can afford to do so. This will cause your account to grow faster, especially the first couple of years. For example, by depositing an extra $100 each month from the beginning, your account will double in 10 months instead of 20.

3. Use a larger initial deposit. Let’s say you deposit $4000 instead of just $2000. You have just cut nearly 2 years off the time it takes to reach $80000. A $6000 deposit will cut nearly 3 years off. However, as the deposit amount goes up beyond that, the time to reach your target is not impacted nearly as much as the lesser amounts. For example, it takes 21 months to get from $2000 to $4000, but only takes 7 months to get from $6000 to $8000.

The nice thing about this method is that as time passes, your trading skills improve and eventually you will be so good at profiting from forex that you’ll be able to do 5% in the first week of the month.

Step 6: Free up your time by using a trading robot or signal service.

This step is optional but if done properly can free up most of the time that you spend trading. A good forex trading software will tell you when it places a trade so that you can check it and see if the trade is worth keeping. Ideally, your robot will only place no more than 3 trades per day, which means you don’t have to spend alot of your time looking at the trades it places.

The important thing when using a robot is to choose one that you have a good idea *why* it places the trades it does. You should be able to plot whatever indicators the robot uses and see right away if a trade placed is worth keeping or not. Remember, you spent alot of time becoming an expert trader. The robot is simply a tool to make your life easier, not to replace you.

A signal service is similar to a robot but it does not trade for you. Instead, it notifies you when a trade should be placed and gives you the information you need to place that trade. Again, it should be used to free up your time so you are not at the computer all day staring at charts. By this point, your trading should be good enough to tell if a particular signal service is worth using or not. It doesn’t have to be as good as you, but if it can’t help you earn your 5% minimum, then it is not worth using.

Financial Independence

Ok, so you’ve retired from your job and you are a career forex trader. But you are not financially independent yet. What gives? Well, now I can explain that part to you…

Suppose you have reached your goal and your forex trading is earning you at least $4000 monthly (as an example). Don’t leave your job just yet. Instead, withdraw $4000 from your forex account every month and pay it towards your mortgage, vehicles, credit cards and any other debt you might have. In a very short time you will have no debt. Congratulations you have become financially independent! You can quit your job, and you don’t require near as much money each month because you have no debt! So now, rather than requiring $4000 monthly to live on, you only need maybe $2000. This enables you to easily save money for travel, savings, investments, or anything else you were not able to do in the past.

Summary

Well, now you have all that you need to be free from debt and become financially independent. I hope you take this seriously and use it to change your life for the better.

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