How to Make Money Trading Forex – 3 Steps to Forex Profitability

Over the past few years we have seen the Forex market skyrocket in terms of popularity with investors. There is good reason for this. The currency market requires little start up capital, trades 24 hours a day, and with the power of leverage can turn out gigantic profits. So how does one tackle this kind of beast? Here are 3 ways to make money trading the Forex today.

1. Choose the right style for you. There are a few styles of the Forex investors. You may feel comfortable with scalping, this means frequently trading and earning a few pips at a time. Others prefer to “hedge” their trades by going long and short at the same time. Some like to get in on the big moves and may have a trade open for days. In this case you can really hit a home run and turn out some huge profits but also expose yourself to risk.

2. Choose the right strategy. Now that you have decided on a style you need to choose a strategy. There are literally hundreds of different strategies out there that rely on signals like moving averages, RSI indicators, stochastics, Bollinger Bands, Fibonacci, etc. Choose a strategy that will fit in with your style of investing.

3. Use software to automate the two. There are a quite a few advantages to using automated Forex trading software. Just to name a couple, firstly you can trade your strategy 24 hours a day. This way you won’t miss any big moves that could have happened while you were out or sleeping. Second it completely eliminates human emotion from trading. No matter how great a trader you are, often times emotions can play a big part. With a Forex robot this is not a problem. When it gets a signal it trades it.

Forex profitability is not a pipe dream

I know as a beginner it can be quite difficult to decide on what avenue to take. But understand that many folks who are Forex novices make a living trading the currency market because they simply have the right strategies in place.

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