A Killer Forex Strategy: Three ways to make consistent profits from Forex Markets
Imagine being able to withdraw large sums of money from the biggest market in the world, at any time you want, day or night. Imagine being able to access this cash from anywhere – A café in Paris, a California beach, an alpine ski resort. Imagine doing lucrative trade after profitable trade, week after week and doing more than enough to finance your luxury lifestyle.
Unfortunately, for most people, it's really not that easy.
Here's a frightening fact: nearly 50% of foreign currency traders lose money to the point where they must stop trading completely and go out and do something less risky instead.
If you are trading currencies right now, or you are thinking about starting, then you have a 1-in-2 chance of losing your trading pot.
They're not very good odds, are they?
I have been trading currencies for over twenty years, on and off, and mostly without much success. When I discovered that almost half of all traders lose money over time, I almost gave up myself!
The one thing that kept me going through those dark days was knowing that the forex software, now available to individual traders for a modest investment or even for no investment at all, are all far better than the software that professional City forex firms were paying thousands a year for only a decade ago.
I judged that the quality of commercial software tools available to us would continue to go up over time and prices will continue to come down. And one day, we would have access to some of the best foreign exchange software silly prices!
I think that day has now dawned.
As 'amateur' forex traders, now we have a choice of three directions to take that will allow us to play with the "Big Boys" – and win.
Option 1 – Pay for Trade Signals
There are lots of companies and "expert" individuals out there that will provide trade signals to you via telephone, SMS or email. I've spent a couple of them myself and they can be pretty good.
Just so we all know, trade signals basically comes from the market. They are either basic (good soil payroll numbers, an interest rate change, and so on) or they are technical, from patterns formed on the charts, or a combination of the two.
There are literally hundreds of different signals to choose from, and a service should pass on to you only those they think have the highest probability to generate a surplus. By the time you get a trade signal, but it will just tell you the currency pair, whether it's a buy or sell, and an idea of stop loss and profit taking levels.
The problem in this system lies in the information provided at the right time and you will be on hand to act on it. The second problem is cost – some of the better will charge you several hundred dollars a month for their service. Of course this adds to the pressure on your trading account you have to get costs by FX signal service back before you begin to make some money for yourself.
Option 2 – A Managed Forex Account
Here, please take your trading capital to a professional forex trading company that will act for you in the markets.
There are several advantages to this route …
* You are hiring a team of full time professionals to act on your behalf
* No matter how good your trading software can be, will their be even better!
* You must spend no time at all staring at screens and analyze charts
* If you find a good team, it might work out very profitable for you.
But there are fees to be considered. Generally, you will be charged an annual administrative fee of between 1% and 3% of your trading capital, and a performance fee (usually charged quarterly) of between 10% and 35% of any profits made.
(If the performance fee seems high to you, think of it this way. Your team of foreign currency traders trade currencies for a living, and enjoying benefited from their expertise. Plus, if they charge you 25% profits, you still get 75% of an amount that otherwise would not have been made. And last but not least, a performance fee will motivate the team to do well for you – and that's what you want)!
The downside for me at least, is the lack of control. I get a really buzz from trading, and I do not want to lose that by handing over my trading capital to a professional team.
You also need at least $ 10,000, probably closer $ 50,000 to get started with a managed account.
Option 3 – Generate Your Own Trade Signals
Years ago, it meant pouring over yesterday's paper charts (which you had to pay a small fortune to get!) in pencil, ruler, and a stack of charts going back several months.
Today, all that can be done with a good paid survey service such as eSignal, or even free with BigCharts.
But it still takes time and you still have to know what you're looking for and it takes more time to build a skill and an affinity with charts before you start making consistent, profitable trades. (And that's if you're in the lucky 50% by the operators!)
Recently a new solution came on the market take away the potentially expensive learning curve, and all this time consuming analysis, and basically does it all for you.
This is the option I like! Here's how it works.
Step 1 – you can download a very inexpensive ($ 198) piece of stand-alone software. This is what will generate the trading signals for you.
Step 2 – you feed it the latest data from the market you want to trade. All you do is take data from your online trading platform (and it does not matter which one you use) and feed it into the software.
Step 3 – if it brings back a trading signal, you buy it (or 'Paper trade' it if you want to test it first)
Step 4 – your profit-taking limit is hit, and you bank the profits!
Sounds it a little too good to be true? Well, let me give you a bit of background.
First off, the guy behind this incredible trade signal generator is a very successful operator in its own right, who used to work for a major international bank, which now makes thousands of dollars a day using this same software. A behavioral psychologist and a professor of mathematics helped him to develop this marketing tool.
Second, last year he took $ 100,000 and turned it into $ 641.147 in just two months using his forex trading signal generator! Now, it certainly was an incredibly good run, but it does show how consistently good these trading signals.
Fortunately, You do not need $ 100,000 to get started! You can open a forex trading account with as little as $ 500 but, realistically, you will want to start with between $ 2,000 and $ 5,000 for commercial capital.
You also do not experience. The software is easy to use for everyone from a complete novice to seasoned traders. It comes with full support, an accompanying manual, plus a lifetime of free upgrades as they happen.
So there you have it – three ways to increase your earnings from forex trading. The quality of the paid-for signals varies widely, depending on skills and abilities of the person or group provides them. If you get a good management in place, they should seek to deliver about 5% per month on your money (although you must understand the accompanying risks, too).
Using software in Option 3 – yes, you've seen the results that the creator had a 2-month period. Nobody can guarantee you will look the same, of course, but it is a very nice track Record! If you were able to get results that are even half as good, would not you be happy?
About the Author
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2. Forex Charts by eSignal with GAIN Capital – BETA