At this point in time, I assume you know what Forex trading is, but i always get this question from friends who heard about forex, and would like to give it a try.
How to make Money Fast In Forex? There are several ways to make fast money in forex trading such as:
- Mirror Trading (Copying Profitable Traders)
- Wealth Management (Minimum Amount Required)
- Using leverage to Trade (Very Risky)
However, this is not the right way to trade. If you learned how to trade Forex properly, you can earn much much more.
Forex Trading follows a simple trading formula almost similar to other financial markets such as the stock market when trading.
So, knowing how the Stock Market works pretty much means you are set to tackle Forex Trading. This begs the question,
How do you make money fast Trading Forex!!
In My opinion.
There are many ways to make money from Forex trading fast, and here are the best and fastest ways to do so.
[lwptoc]
1. Investment In A Good Forex Trading Course
This is one of the most important steps in learning how to make money fast trading forex.
Understanding is the first step of forex trading. To make money you need to know what you are doing and courses are a great way of learning forex trading.Â
Furthermore, exposure to different tutors of forex trading gives you different ways of tackling forex trading as different traders have different strategies that they employ during trading.
But it is very important…. to focus on one course at a time
Taking these courses give you deeper knowledge and experience with an instrument or technique that you learn.
You are more able to make consistently successful and thoughtful decisions within it. The knowledge gained from taking the course will enable you to grow as a trader and improve your trading strategy.
Online courses also enable you to either adopt a tutor’s strategy of trading or develop another strategy that works for you.
Having received the knowledge, it will be relatively easier to develop and test a strategy that works well for you.
There are good online forex trading courses
It is good to note that some of these courses may involve paying to enrol but I think it is a worthy investment as the return will be more money.Â
2. Trying your Strategies in a Demo Account
This is the next reasonable course of action after learning about forex.
Practising in Demo accounts is a good way for you to test out your knowledge and find out what works and what doesn’t work for you.
Remember though that the goal of using a demo account is to get a handle of your strategy with the intention of switching to a live account as soon as you understand how to trade.
Practice makes perfect but remember not to over practice on the demo account because the main goal is earning money and that can only be done with a real trading account.
3. Getting A Forex Trading Mentor
Having a mentor is a very important step in becoming a successful forex trader.Â
You need to find a good forex trading mentor who is an experienced trader and has the required knowledge and the know-how to successfully trade in the forex markets.
Having a trading mentor will significantly improve your trading progress.
There is a lot you can learn from successful mentors, the main being they have been where you are and can give you reasonable advice on how to handle different scenarios in forex trading to help you establish yourself.Â
Having a mentor follows 2 processes….
- Knowing what to look for in a mentor
- Knowing how to find a mentor
1. What To Look For In A Mentor.
A trading mentor should be a professional in their field. They should be practising what they teach you.
Mentors should also be helping people with those beginners and can engage by sharing different ideas.
A trading mentor should be motivational and inspirational,
They should also be supportive of what you do. I was lucky to find a mentor who teaches a trading strategy that suits my personality.
2. How To Find A Trading Mentor?
The best thing i search for to find a mentor is through:-
- Youtube
Youtube is one of the best and most importantly a free source for mentors.
- Udemy
Udemy is the paying part of the equation. However, all the mentors are dedicated to teach the best they can to their students
4. Using Volatility And Accepting Risk
By Far this is the least favorite path i would suggest. But hey: If I want to make money fast from Forex, I should take my chances.
We live in a world where winning and losing is part of the life equation.
So, me saying you will profit every time from every trade you make will be lying to you.
Even the most successful traders with many years’ experience in forex trading have admitted that less than 40% of all their forex trades have become profitable.
So do not worry if you lose a trade. “Failure inspires winners”.
The main point of focus is to have profits that outmatch the losses to maintain an overall net positive.
It is important to
- Identify your Bad judgment in making a losing trade.
- Learning from the mistake.
- Finding a better way to work around such mistakes if the situation ever arises again.
On the same note…
It is important to set a stop loss. This will give you peace of mind knowing you will not lose more money than the limits that you wish.
Although stop loss is not a guarantee because the market can develop slippage where the market acts erratically and does not execute your stop-loss order,
However, it is a better option than losing way too much money
P.S. “Always use Stop loss in your trades”
5. Stop Overtrading (Surprise)
YES…
Study shows The lower and accurate trades, the more profitable you are.
You need to develop a strict discipline when forex trading. The real enemy here is wishful thinking.
Wishful thinking makes forex traders see opportunities for making money in forex with quick easy setup and fast trades. When the reality is it is not easy to find trades with good odds to move the price to your desired direction
“Wishful thinking encourages you to make traders trade more frequently or trade with too much volume and the result is that you may lose money.”
Beware of Trading with high volume.
Trading in high volume and using the full leverage is a Double-Edged Sword.
If the forex market moves in your favor, That is good and you will make money. BUT, if the market moves against you the result is that you will experience a great loss.Â
- To trade forex properly, you have to wait until the opportunity is clear to make your move, Having patience in waiting for the right opportunity to make trade shows grat discipline and the result is you will get More Money Fast.
As the saying goes,
Money searches for the patient.
Always follow your plan and never trade on impulse.
Many traders become obsessed with chasing money and the excitement makes them do a lot of mistakes that cost them a fortune.
And one of the impulse trading is —- Emotions :-
Leave emotions outside the door when you get into a forex trading room.
Rather work on establishing new strategies and doing more research to stay up to date on the market as this will increase your chances of making a profit.
P.S. The thought of earning quick money with a few quick trades is highly not achievable.
Diversifying your Trading Strategy is not a Good Idea
WELL.
That is a bold statment and requires an explainasion,
when you have a lot of winning trading under you sleeve is of course is a good thing, In fact, it is Awesome.
The point here is, you as a beginner, will not have that many wining strategies. On the other hand, you will not know what a winning strategy looks like.
Many beginner traders read about winning strategies out there, and learn about them from “Gurus”, (Maybe those Gurus are wining using these strategies) but that does not make it a winning strategy for you.
It takes time to grasp a strategy and make money out of it.
Most traders think that diversifying in forex trading will make you money fast but that is completely wrong.
Truth is that in diversifying you are diluting your gains and this results in a slow money-making process.
So, if you are thinking of making money fast, avoid diversification at all costs.
6. Copy Trading / Mirror trading.
Copy trading is another great way of making money fast.
It involves copy signals of more successful traders. Every trade that they will make, the same will be duplicated to your trading account.
Copy trading is usually handled by the brokerage. You never have to do anything other than subscribe to this service.
You can make money if you find a good trader with a progress line that goes up.
But make sure —- That you “analyze and understand each trading signal” so as to get a hold of new trading strategies that work and how do they work.
Copy-trading should not only serve as a means to make money but also as a means of learning new ways of forex trading.
But it also has some negative sides. For instance.
Rather than making the trades your self, they are done by your brokerage.
In-spite of the great advantage you will get from copying other successful trader, There are some advantages out there that may harm you.
FIRST, Lake Of Experience
I don’t believe trading from the sidelines is a good way of trading Forex. It is important to be actively involved in trading to learn, Especially to know (why did you take the trade, and what are the consequences of the trade you took.)Â
SECOND, Always Dependent On Others.
It also has the disadvantage that if the person you follow stops trading —- then you will have nowhere to start from because all your trades have been handled by somebody else.
Keep that in mind if you decided to take this route
7. Wealth Management.
P.S. This requires a certain capital to invest, the amount of money depends on the wealth management company you’re willing to follow.
So, If you are looking to make big money fast then money management is a very important thing to consider.
There are multiple companies out there that are offering their service to invest with your money.
Obviously,
I did not go through this route my self, as I strongly believe that If I am willing to enter the Forex trading, I have to understand everything about it my self.
Clearly Wealth management is not my way to go.
Points to Consider
If you want to be a successful trader, you have to follow a strong money management plan.
Money management Plans involves the following steps:
- What percentage of the account to risk?
- How many pips to risk?
- Creating a money management framework
What Percentage Of Account To Risk?
How much capital you will risk will depend on the size of the account.
It is a general rule to never risk more than 1% of your account on a single trade.
If it is more than what you want you can choose a lower percentage. All that matters is that you are profitable at the end of the day.
It is important to stick to the risk limit that you set and the best way to do this is to set a stop order. As earlier stated, this will allow your account to automatically cancel a trade when the risk limit is reached.Â
How many pips to risk
To know how many pips, you should risk I advise using a pip calculator. A pip calculator is a very important tool for traders’ that helps you to calculate the value of a pip in a currency you want to trade.
This is very useful information to find out whether a trade is worth it and managing the risk outcome.Â
How to calculate is:
- Set the pip amount
- Choose the currency pair for the trade
- Select the number of lots you wish to trade
- Choose which currency you want the pip value to be displayed in
Creating A Money Management Framework
You have to create a money management framework for freedom.
If you want to make money you have to plan because planning is what creates results. If you plan well you will inevitably achieve your goal over time.Â
Newer traders think about making money while more professional traders think about how not to lose money.
Something to remember
Understanding The Power Of Compounding Â
This is another very important aspect of forex trading you have to understand if you want to make money fast.
Reinvesting previous profits to make more profits has the potential of producing excellent returns for you.
An example is having a 10000$ account with a trading strategy that produces a monthly return of 10% by compounding, in 2 years this account will get you to 98, 400$.
Pretty sweet right? There is no other investment strategy that can do that.
In compounding, it is critical to stay focused on the long term as your account steadily grows from month to month and in a few years.
Final Remarks
From the points above, what made is the best way you see is to make money fast from FOREX?
Is it the good course investment or wealth management, Please let us know in the comments below, and always remember
Having excellent trading skills and good discipline equals making money.