Now total disclaimer I am not suggesting in that profits are guaranteed in anyway so please visit our Trading Disclaimers page. So you are getting into Forex and want to make money fast. That is great but make sure you get your basics down first understanding specifically about risk management you should never over leverage your account as you will likely blow it over time.
So how can you make money fast in the Forex Market? Use a minimal Stop Loss with a Precision Entry. It sounds simple and it can be but you need to demo before going straight to live and that goes with any strategy. Your stop loss if your profit regulators. So if you have 2% risk into a 10 pip stop loss you will make 2% every 10 pips. Same risk but using a 50 pip stop loss you will make 2% every 50 pips. That is 1/5 of what would have made with a precision entry. Just do the math.
I am going to state this again just do the math when it comes to Forex. You aren’t going to make 10 million overnight and Forex should never be looked at as a get rich quick scheme as you can lose hard earned money quickly.
That is why it all comes down to risk percentage and how big your stop loss is. Then of course you add in win percentage and amount of pips that is how quickly the compounding can add up.
5 pips a day can make you a millionaire in 2 years with a $5k trading account by just doing the math. Don’t believe me? That’s okay just go to any compounding calculator and put 1% daily, 20 days a month, starting with 5k for 2 years and there is the evidence.
If it is this simple why isn’t every doing it?
That is because of the penny doubled everyday mentality doesn’t exist. As I am writing this article for example there is hardly anybody that is going to see this article for months maybe even a year. But I am investing my time to be rewarded later. That is all it takes to succeed in life, but it is tough we are brought up to succeed in this way.
We are brought up to work and get our paycheck. When it comes to getting into shape everybody wants overnight results however it takes time and consistency to get the results you are looking for. That is no different with forex.
So why not in every aspect of your life apply the compound affect? (read or listen to the book by Darren Hardy)
This is just a way of life it is hard not to take the reward as quick as possible it took me many years to get any kind of handle on this mentality. I still struggle with it everyday. It is something that you have to just say I am going to do it and then work on the mindset as you move forward.
Make Money Fast In Forex?
Okay back to the original question. Using a tighter stop loss yields bigger rewards without over-leveraging your account. So how do I get the precise entries? You need to focus on trading in the New Paradigm. This includes using harmonics, trend lines, pithforks and the almighty fibonacci. Build energy points which is where you are stacking these confirmations together to create a tight price reversal zone (PRZ).
Here is example of a 190 pip drop caught with a 10 pip stop loss. Does this happen all the time? Of course not but you only need one of these a month and then take your 10-20 pip trades along the way.
It does take a lots of practice (Volume Of Trades) to get these trades down. What happens though is that your losses instead of being -10 pips become -3 to -5 pips which means you are going to risk 2% for ever 10 pips but if you get out at -5 pips you are really only risking 1%.
This probably doesn’t make sense but just remember at the end of the day your job as forex trader is to protect your capital. Trading in the new paradigm is the best the way to that as well.
(From our free facebook group)
Can You Get Rich By Trading Forex?
You absolutely can get rich by trading forex, but you can also lose all your money as well. Trade smart if you risk 3% of your account it will take you losing over 33 straight trades to actually lose your account. If you are winning 7-8 out of 10 trades and not over-leveraging this will never happen. Getting rich quick doesn’t exist for most people you need to put in the work and be patient. The penny doubled a day mindset does work so stick to it for the long run taking one step at a time.
Is Forex A Good Way To Make Money?
It can be if you learn to win more trades then you lose and use proper risk management. Don’t let the get rich mindset blow your account. If you learn to build slowly you will never lose your money quickly. If you make your money quickly that usually means can lose your money quickly. The shortcuts can be the longest ways in reality. Forx is a great way to make money as you can do it from anywhere in the world all you need is laptop and internet connection.
How To Make Money Trading Forex With No Previous Experience?
You need to start with the groundwork. Learn how to open a demo account which we teach you live for free with our membership. Start with the basics then work up to an easy strategy. Demo the heck out of it until you do something along the lines of doubling your account or maybe getting to winning 8 out of 10 trades which should be 80 out of 100. There are no gimmicks with forex you either win or you lose. Different then gambling is that you control what you risk on any given trade with your stop loss but you can ride a trade as long as you want. Just move your Stop Profit up and ride the trend.