3 Powerful Strategies To Earn Money Faster In 2017-2018
Life is like riding a bicycle. To keep your balance, you must keep moving.
By James Spurway
Unlike buying stocks of a company and waiting for a long period of time as the company grows to obtain profit, foreign currency (Forex or FX) day trading is a short-term strategy aimed at increasing your return as you buy, sell, enter and close out transactions on the same day.
This is not an investment strategy designed to capture long-term appreciation. Here are the best ways to gain profit from Forex Day Trading in the year to come.
Learn the ropes – trade on a “DEMO” platform to gain confidence
If you want to learn the ropes of this industry, taking currency trading courses or reading a guide is probably the best way to go. Many currency trading associations and websites offer traders free demonstration “demo” trading platforms so that you can start executing trades without having invested any money.
Everything else is very much real. If you can’t make a profit on your demo account after a period of a month or two, maybe this is not for you. Some websites may ask for a small membership fee, but if you’re dealing with a reputable site, it is probably worth it, as the more established FX Brokers will also offer you tutorials or webinars that cover the basics of the market, and trading.
You will thus increase your chances of making a profit by learning the basics of day trading, swing trading and position trading, as well as the fundamental investment principles.
The most beautiful things are not associated with money; they are memories and moments. If you don’t celebrate those, they can pass you by.
Be politically and economically aware – know what moves the markets
You will have a greater chance of taking advantage of currency market movements if you know its basic theories, such as the fact that a country’s currency is highly influenced by its political and economic development.
In order to make healthy trading decisions, you must know the latest country-specific situations.
So before hitting the day trading market, try to stay informed by watching Bloomberg, Reuters or CNBC TV, reading the Financial Times or subscribing to online news services, as this will give you an immediate advantage.
Make sure you know the most recent inflation rates, tax laws and changes in government in the countries which have the currency you trade, so you can make smart choices.
Choose a simple system – and then stick to it
Before making your investment, you must be sure that you understand the logic upon which that particular system relies. If you can’t grasp why and how it works, you will not be able to follow it and you will suffer inevitable losses.
Instead, go for a system with simple logic, which has only basic parameters and rules. There is no relationship between the complexity of a system and the amount of money it can bring you.
Last but not least, don’t forget to look at the money management involved in the system, as this is the key to your trading success.
One of the first principals of Money Management is to know how much of your capital (often called equity) is at risk on each trade you place. Never allow your emotions to cloud your judgement and place a buy or sell order that, if it doesn’t work out, would result in your entire equity being lost.
Although the trading activity is short-term, i.e. is all over within one 24-hour period, the aim is to be doing this day in day out for years, so you have to protect your investment.
Yours truly. Jim