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In this video, we’ll be showing you the exact steps you can start taking today to generate an income from your Forex trading. We’ll also be explaining why the way most people try and do this will never work for any retail trader online. Hi, it’s Jarratt here from Forex Source. Now, if you’re trading Forex, you probably want to be making an income from it as quickly as possible.
Most retail traders believe that the best way to achieving this is to find a proven trading system, follow it methodically, and then use leverage to grow their account quickly. And this is one of the biggest myths out there. And if you follow that line of thinking, you are doomed to fail. Now, you might’ve already been caught in this trap and started to realize that it’s not quite that simple.
Now the good news is that there are better processes that you can follow to grow your trading account and generate that income. And it all begins with learning how to trade properly. So, because the professional traders use a combination of fundamental and technical analysis. Most retail traders use one or both of these concepts in completely the wrong way. The most common mistake that you’re probably making is that you rely solely on technical analysis, price charts and indicators.
You sit at your desk staring at charts just waiting for one of them to give you a signal. The reality is that professional traders find trades using fundamental analysis. Once they know which currency to trade, when to enter and in which direction to trade in, they then look at the technicals. Their technical system merely helps them find the entry and the exit. If you don’t trade like that, then you’re missing out on the professional approach.
It also explains why you can’t seem to get any consistency with your trading results. Now, when you incorporate some fundamental analysis, you’ll start to notice drastically more consistent results. Now the next secret to generating an income is to trade without leverage, because too much leverage is the number one killer of trading accounts. This means for every $1,000 in your trading account, you only take each trade with one micro lot. So for every $10,000, you trade one mini lot. For every $100,000, you trade one standard lot.
That very roughly, equates to about 1% fluctuation on your account for every 100 pips won or lost. In other words, you need to lose about 10,000 pips to completely wipe out your capital. This little change will allow you to hold trades longer and manage them with confidence, rather than to have emotions like fear or greed.
And that will feed into the consistency and help you try generating more consistently profitable performance. And the final trick is to widen your stops basically. So don’t try and trade with 10 or 20 pip stops, because what’s going to happen is you’re just going to get whipped in and out of trades too easily. Instead, look to use bigger stops of 100 to 200 pips. That allows each trade to breathe while not getting stopped out and whipped around by volatility.
Now when you apply those three tricks, you’re going to start to build a record of consistent performance. And then, what you can do is you can sign up to one of the many trade copying websites. These are also known as social websites, and those websites effectively let you sell your trading signals to other traders, and that will provide you with the subscriptions that repeat every month.
The trick here is to avoid spending that money. Instead, the money from the subscriptions is reinvested back into your trading account, so as your balance grows, you can increase your position size without using leverage. This has a compounding effect on your account balance and ultimately your income.
You should also look for any other ways you can to increase your trading income. And every new income you generate should be reinvesting, compounded to help you grow your account. And very soon, you’ll have a large enough account that you can take trades big enough to your profits that you can comfortably level.
Don’t fall into the trap of trying to use lots of leverage and increase your small account balance quickly. The only ones that benefit from that are the brokers. The key here to build multiple sources of income that don’t distract you from your trading, and then reinvest those incomes into your own account, which would build your profits much faster. And will take time to achieve, but that is something realistic will actually yield results you can live off, right?
In the real world, that’s the fastest way to generate an income from your Forex trading.
If you find these trade examples useful, you’ll love Forex Source. There’s a link below were you can learn more about it: