Forex traders starting out in forex trading expect to quickly make a lot of money. For beginners to forex trading, this is one of the most common mistakes. You can lose money in volatile and fast-moving online foreign currency markets, read next page.
A 3-day intensive and comprehensive foreign currency training was held in Kuala Lumpur Malaysia. One of our Malay students is eager to create his wealth, achieve financial freedom, and build his business. The beginner to fx trading is extremely desperate for money because of his current unemployment. He expects to trade for living in a few months and to have financial freedom. How does he plan to do it? This currency trader is aiming to earn 200% per year by trading currencies!
After one month of forex trading online, I reviewed the trading results for this Malay student trader. Guess what? He is losing a lot on his forex trading account. He says that because his capital was small, he does not use the money-management theory or risk management method for currency trading. We just wonder how he’s working towards his goal of 200% monthly earning, as he still hasn’t mastered the technical analysis skills and is yet to start making small profits on consistent trades.
While it is possible for forex traders to earn 200% on volatile forex markets, it is not feasible for everyone, particularly beginners. A proven and tested forex trading strategy that offers at least 70% to 80 percent winning chances over a prolonged period of trades on the foreign currency markets is essential for currency traders. The goal of a beginner foxtrader is to make 10% per monthly if they have a conservative and low risk money management. To illustrate, the risk management level should be set at 1%. You should only trade in the lucrative currency market for a few hours each day. If you have a 70%-80% winning strategy, only one currency trade should be made. On a total of 20 trading sessions, there will be 14-16 gains and 4-6 losses. After deducting losses from trades, you’ll get an average of 8% to 10% per month. This simple trading plan can be followed by a beginner forex trader. Once you have gained consistency, you can start trading forex for a living.