Make Money with Forex
Learn to trade currency successfully

One thing I have learnt about Forex trading is that it is a great way to make money.  Before that, I learned that it is a great way to lose money too.  And the difference is finding a system and sticking to it.  It comes down to that – a System and the Discipline to keep to that system.

Why Trade Forex?

But why trade Forex at all?  Primarily because it is such a huge market, open 24 hours a day, and one where it is possible to make money whatever the economy is doing.  Whatever happens anywhere in the world, there will be fluctuation in currency exchange rates and these fluctuations are potential sources of profit. 

How To Make Money Trading Forex

You make money trading Forex by correctly predicting changes in the exchange rate between any two currencies.  If the exchange rate moves in the direction, up or down, that you predict, then the trade is successful and you make money.  This is where a system comes in.  If you leave it to guesswork, then you can only hope to be right half the time and you will almost certainly lose money.  So you need a system that will improve the accuracy of your predictions.  Now unfortunately there is no system that predicts future price movements with 100% accuracy.  It will not be correct every time, so a good system is one that predicts correctly more often than it predicts incorrectly.  And a very good system is one that predicts correctly 3, 4 or more times than it predicts incorrectly – that means 3 or more winning trades to every losing trade. 

And that is where discipline comes in.  You need to use the system regularly and you need to keep the size of the trades consistent.  If you get greedy or desperate and make a large trade and it goes against you, you seriously damage your trading account.  It can take a while to recover from that sort of damage.

So the number one key to successful trading is discipline.  If you don’t have it or don’t develop it, trading Forex is probably not for you.  Lack of discipline makes trading a gamble – no better than flipping a coin.

Given the discipline, you need a system that you can trust.  The hard way is to develop your own system.  Read the books, understand charting, develop a system, backtest it to see if it works consistently, modify it and repeat the cycle until it seems good enough to put to the test on actual trades.  And if it is not good enough, go back through the cycle again.

The easier way is to follow a system developed and used by a successful trader.  I still recommend doing some study first and understanding the principles.  Don’t go into it knowing nothing about Forex, buy a system and expect to make loads of cash.  It might work for you, but I think it far better to know enough to understand what you are doing.  Having decided on using a system developed by someone else, how do you go about it?  The criteria I use for selecting a system are:

• Is it developed by a successful trader?
• Has it been shown to produce a winning to losing ratio better than 3:1 (75%) or better still 4:1 (80%)
• Has it been successfully used by a large number of people who are making money using it?
• Does it come with a money-back guarantee if you buy it and discover that it doesn’t fit in with the way you want to trade (trading hours, length of time you have to trade each day, financial commitment on each trade) or if you just don’t like it or if it doesn’t produce results?

One system I have found that meets these criteria is Dean Saunders’ L-M-T Forex Formula, which is remarkable on a couple of counts: One – that it can be cut down to 15 minutes trading per day (but I wouldn’t recommend that when you are starting out) and Two – it has demonstrated a better than 80% success rate.  To find out more about this system CLICK HERE

I bought this system over a year ago and was very happy with it and made money with it.  It comes with a detailed instruction manual which covers the basics of trading as well as everything you need to know to use the system, and video tutorials on the members’ site which fully explain everything too.  I found everything easy to follow and I had no problems setting it up and using it, but in the unlikely event that you do have difficulty, Dean Saunders will provide full support.  And then of course you get the software.  The software is designed for use with MetaTrader 4 charting software that you can obtain free of charge – if you are not sure what that is about, don’t worry – all is explained.  Many brokers use MetaTrader 4 as part of their trading platform, so that makes trading really simple, but I traded via a company that didn’t use it and that created no problems at all.  You really can suit yourself, but whatever you do, I would recommend starting with a practice account so that you don’t risk your capital while you are learning the system.  Then, when you fully understand it, do it for real!

Is one system enough?  To start with I have found it essential to find one good system and stick with it.  When you have become a successful trader using that system and have built up your trading bank, then you may want more tools in your trading toolbox.  But at the outset, absolute focus is essential: the worst thing you can do is keep chasing after new systems and never really implementing any of them properly.  Focus, discipline and a good system are the keys to success.