Account forex trading online is considered to be a viable and profitable online business which can make you a lot of money. But before you can consistently make money in the forex market there are four (4) keys that you must have to be a winner in trading currency. Listed below are the four basic foundation keys every forex trader must posses if he hopes to make money in the market.
1. Practice + patience + persistence = profits: Just like they say, there is no substitute for hard work and diligence. You must first practice you trading strategy on a demo account for at least three months. Trade it as if the money in the demo account is yours. You must not open a live account until you are making steady profit in your demo. Stick to your trading strategy always.
2. Choose one currency pair: Here is where many newbie traders get it wrong. They jump from one currency pair to another without properly understanding how they trend. If you want to make profit and succeed with forex trading you must choose one or two currencies pair at most and focus your analysis. By doing this you will be able to understand the trend of the currency you are trading and how to maximize profit and make more money from the market.
3. Money management: This is by far the most important part of your forex education. Because without proper understanding of money management in trading forex, ensures that your money gets wiped out sometimes even in a single trade. Before you enter any trade you should first calculate and know where to place your stop loss and target profit. Do not enter any trade without setting your stop loss and target profit.
4. Small gains: If you want to make more profit in forex for a long time and continue to grow your capital over and over again. Then you must not be greedy by staying too long in a trade. Small gains have been proven to double your forex trading account faster with minimal losses. If you are going to be a day trader, you should go for 20-30 pips in a day.
Following these steps allow you as a forex trader to master the market and make money on your account, instead of you losing money to your broker and feeling broker. Forex can be a real source of income for you.