The Key to Make Money in Currency Trading

By Karielle Samstad

How do you really make money in forex trading? Some people believe the key is to predict the market. They work day and night with trends, charts, Elliott Wave methods, Fibonacci methods, fundamental analysis, technical analysis, intuition, dreams, you name it. They work very hard to predict the exact moment to get in and the exact moment to get out.

Do they make money? Hardly.

The key to make money in currency trading is not predicting the markets, but having a good strategy to manage the cash flow and control the risks of losing money.

You can have the most detailed charts, the best software on Earth, the most specific fundamental and technical analysis, the best tools ever, but if you do not have a money and risk management strategy in place, all your tools are not worth much. You will most likely to lose money in your trades.

This is the difference between a successful trader and an unsuccessful one: the ability and the discipline to set and to follow sound strategies to manage your money and control your risks.

What I mean by discipline is to know when to enter the market and why, when to exit it and why, and where to place stops and why.

Every successful trader watches his/her cash flow and the level of risk on each trade, not if the indicators look good or not. A successful trader is in control of his/her money and risks, not of the market and its behavior.

If you are new to currency trading, it might be difficult to follow a money management discipline. But it is precisely how you manage your cash flow what will give you the confidence and the wisdom to trade the markets correctly, minimizing your risks of losing money.

It is not possible to predict the currency trading market. Nobody can do it. But what you can do is trade the market correctly applying sound strategies and getting rid of emotions like anxiety, fear or greed. Those emotions only make you react and make decisions by impulse, with no reasoning, and just hope your reaction was the right one. Most likely it was not.

My best advice to you is, detach yourself emotionally, set up a sound money management and risk strategy, be in control and start making money today!

Copyright by Lanval, Corp. All rights reserved worldwide.

About the Author:
Join the Successful Trading Club and receive information, tips, strategies, resources, and all the information you need for a profitable trading. To know what the forex world is raving about, go to foreignexchangecenter.com and click on Forex Top 10 Downloads to start trading like a pro today!