How You Make Money Trading Forex

In my desperate search for the winning wisdom in forex trading, I have spent fortunes in acquisition of knowledge from many experts on the trade, I have paid hundreds of dollars to purchase so many information, my library is loaded with brain of forex traders in black and white, some are very informative and helpful and few are so irrelevant, after several months of research and demo trading in various platforms I graduated from a novice to an upgraded forex trader and today I can say I have climbed up the ladder of forex trading faster than I thought I would, making good money and having lost some that has made me better forex trading coach and entrepreneur today. My greatest joy in online business is my ability to be able to help others mine the Internet wealth without stress.
To become a profitable and reliable forex resource expert and trader it�s very expensive and very costly. Most resource books and e-books on this trade are not too easy to come by. Please tell how can learn the forex trading that can make me rich.?

forex is not a get rich quick scheme, it takes time and a lot of patience to earn good money.

Have a plan.
Test your plan
trade to your plan.

Just to add to that have a good money management model in place.

And your all set.


i have entered into forex one year time , i read a lot of books and articles related to forex trading at the beginning , and then i made a plenty of practices to test my trading methods. now i have gotten the most suit trading method for myself. i think this is the best treasure for me in this year.

there is no shortcut in trading way. just practice more to get your own trading methods.

but i can recommend marketiva platform for you to take practice in forex.
you can free open an account in there, can get $5 real money reward and get $10000 virtual funds to start and practice your trading. for virtual trading in this platform there is no time limiation and can refill it when it less than $2000. anyway i got a lot of benefits in marketiva. hope it’s helpful for you as well. good luck.

Thanks for the information. I found very useful information in the e-book �Trading Machine� by Avi Frister. Very informative and I think best for the beginners.
Thanks again.

You will need to continue testing new methods on a demo account until you feel comfortable enough to start trading with real money.
I started this way using Marketiva as my broker as they provide a virtual account that can be splitted in different sub accounts so i was able to test all my methods, right now im trading with real money on Marketiva and getting a steady monthly profit.

Really, the system development process should be viewed as an ongoing thing. Markets change. System performance changes. To keep on top of it all, you have to continue researching and testing. Don’t expect that you will find one system that will make you loads of money forever.

Hi John,

Maybe you are just the person to ask. My question pertains to systems using support and resistance.

I’ve always been curious by this statement “Markets change”. I agree they do change but what does that change entail? I know markets change as far as trending or ranging conditions. I know markets can change as far as how they react to certain news announcements. I know that correlations and volatility can change. But i also know that FOREX, in general, is less affected by change catalysts affecting other markets because of its size.

For this reason, i think concepts such as support and resistance have withstood the test of time in the forex market. But, if there was anything that could change the forex market to the point that a cornerstone concept such as support and resistance would no longer be practical, what would that be? This is what escapes me.

I’ve always been partial towards using S/R because i always beleived that the validity of the concept at a fundamental level would not really change. That might seem like a naive notion but i beleive that markets change, not people. There will always be fear, greed, regret and anxiety in the market place and i believe S/R is a direct reflection of that idea (especially on longer term time frames). Am i totally off base here?

One of my problems as a trader has been fear that a method could stop working at any time because of market changes. This is why every time i lay my hands on a mechanical system, i tend to get the jitters. Mechanical systems cannot adapt by themselves, which is why many tend to stop working entirely after certain changes. But i always felt that S/R carried an element of built-in adaptability: you can use it in ranges, trends, you can use it to read appropriate stops and targets, even as the market is changing.

I’m not sure if i’ve made any sense but all in all i guess what i’m saying is that i think S/R will always work in one way other. If there is any kind of market dynamic that could seriously change this, what would it be? Maybe impossible to answer.

I agree with you 100% that support and resistance, basically by definition, will always be important. I can’t see that changing.

It really all comes down to price and volume - how prices move and what is driving them. Price is a tracking of human behavior, which I personally don’t think has changed much on a fundamental level, and volume is a measure of how active the participation is. It’s still primarily either business driven (ex. Company X has to buy 100m GBP for a trade deal) or emotionally driven in one way or another. That’s why we see the same patterns repeat themselves over and over again - not necessarily perfectly, but certainly with a high level of consistency.

I think we all go through the indicator phase where we check them all out trying to find the perfect one. Of course there isn’t one, as we eventually come to understand. They are just another way of looking at human behavior, and at least once removed at that. I think that’s why most folks who have been in the market for a while and who do use indicators don’t do so in an absolute fashion, but more in a relative one as they gain experience of how the indicator works in various market conditions.

You hit the nail on the head when you outlined the things that do change over time - the way the markets react to certain data releases and news events, the volatility, correlations, etc. Those things absolutely change, and because of that, the way we trade sometimes has to change.

Here’s an example. I used to be a very regular S&P trader in the e-minis. My strategy was support and resistance based, favoring a break-out approach. I made nice returns with it. When the stock market volatility evaporated, though, that approach worked less and less well. The return side of the Risk/Return equation was shrinking.

This sort of thing happens and means a change in approach is required. And that is why we need to always be evaluating the markets and how we are approaching them, and why a mechanical system is almost certainly doomed to fail in the long run if it isn’t inherently adaptive. (And there are ways to make them adaptive.)

Thanks for the detailed answer…appreciate it

An interesting thread. Some educators tell us to stick rigidly to our system as yes, there will be losing periods, others tell us to ‘adapt the system to market changes.’ After a year of studying tech. analysis, I gave up. It reminds me of a donkey trying to catch a carrot tied above its head.

Now, trading mainly GBP/USD and EUR/USD I use only candlesticks and keep a close eye on the fundamentals, especially major news releases.

I have found that with enough study and practice, the candles will reveal as much about price and human behaviour as anything else. Eventually I started to ‘read’ the market i.e. what the market is DOING. Only God knows what it WILL do. I am amazed at the amount of money and effort that must be wasted on false promises of seeing into the future by the unfortunate ‘herd’ that believes the hype on the net.

Anyway, using candles, a bit of common sense analysis (OPEN/CLOSE, SUPPORT/RESISTANCE when in doubt) and watching the fundamentals, my trades for February were 79.8 percent winners. Yes it might be luck, but I found it a whole lot easier than trying to ask a few graphs where the price is going next Wednesday!

All well and good. What was even HARDER for me to learn was the dreaded MONEY MANAGEMENT. I had very burnt fingers before I finally got the DISCIPLINE not to move stop losses, ignore the charts, throw a dice, etc.
Novices, study this and get it right BEFORE you leave your demo account.
With good money management you can still make money even if 90 percent of your trades are losers, so don’t be looking for that ‘99.99 percent accurate system.’

Best of luck to you all…

Point of note here. Candlesticks, since they are simply another form of chart analysis, definitely fall in to the category of technicals. I’m guessing, though, that you mean indicators and such.

Also, I wouldn’t call watching news releases fundamental analysis. That’s more playing the market’s expectations and reactions. It’s more like trading market psychology if you think about it. Real fundamental analysis involves analyzing all the data and coming up with your own expectations for future economic growth, inflation, interest rates, etc.

Careful with that statement. If you don’t have an “edge”, meaning a method that produces positive results, then all the good money management in the world isn’t going to help you. Good money management can make a profitable system more profitable, but it can’t turn a losing one in to a winner.

It is definitely true, though, that win% is the not the be all and end all of trading system performance. It’s just one contributing factor.