Forex Trading Tips: Treat Forex Trading Like a Business and Make Huge Profits
In terms of Forex trading the advice I would give to any new trader is to treat Forex trading like a serious business and you can make a lot of money and in this article I will show you how but if you do what most traders do and treat it as a hobby or just trade without a business plan, you will lose money. Let’s see how to make a lot of money trading forex.
When you start any business you have a plan and forex trading is no different and your plan involves:
– Research all the BASICS to do with the business you operate in and develop a strategy to make a profit.
– An overhead and revenue analysis to give you a REALISTIC profit target.
How many traders start with a plan like the one above before trading?
Not many, so let’s see what you need to do to make money and trade profitably.
If you are a business owner, you know all the basics about your market and the same is true in forex trading. You need to learn how to make money and forex a system to trade your market and this involves developing a strategy that is easy to do because good forex trading systems are simple and therefore easy to learn.
The real problem for most traders is that they don’t know the basics and don’t develop a plan and end up losing. They try to trade news, follow gurus or use robots and think they can get a shortcut to success and they lose. If you want to win, you must do your own research, accept responsibility, and execute your plan with an eye toward keeping your business overhead low and increasing profits, which is the real key to success.
The key to business success
The key to trading Forex is to make sure your income exceeds your overhead or is converted into trades, this means keeping losses low and making sure your profits are higher! Most traders don’t do this and the reason they do it is that they want to make money on most of their trades but this isn’t possible, you need to have overhead to win so taking losses is part of your business: the key to winning is to keep your overhead low.
You won’t make 90% of your trades, as many people tell you, you probably won’t make more than 50%, but that doesn’t matter, as long as you keep your overheads (losses) small, your business can still make an overall profit. take profit if you execute profitable trades, to cover losses and make an overall profit.
All business owners will know that they will have numerous losses on lighting, heating, wages, taxes, rent, etc. trades can cover them and make you a lot of money. To stay in business, you need to keep overhead low.
How much money can you earn?
A realistic target growth per year is 50 – 100% this is a ballpark figure but it is good to aim for and unlike many other businesses a Forex business requires much less effort to make big profits most other companies and I know. Lots of traders, making 100% annual profits in about an hour a day – what other business can bring you such huge profits in such a short time?
I can’t think of any business with such great rewards for the effort you have to put into it. If you are serious about your Forex business you can make a lot of money, but if you treat it like a hobby or a gamble (as most traders do), you will join the 95% of losers – treat it like a serious business and you will can make you a fantastic income.