How to Make Money Trading Forex

How to Make Money Trading Forex

After few years of trading the forex market, I became aware of how 90 – 95% of novice traders fail and lose all of their money on the market. Many traders struggle to make their way into the market and the majority suffer from a lack of education (if not all of them), and they start trading without acknowledging to whom are they selling to or buying from.

First thing to do is to get proper education. You cannot trade and make money if you do not know the basics of trading. Making money on forex market is not that easy if you can’t answer these questions:

• To whom are you selling?
• From whom are you buying?
• Who’s responsible for the market movement?
• When should and should not you buy/sell?
• When should and should not you take profit?

Banks and Institutions are the one that trigger big moves in the market. Novice trader will always get fooled by the media or by those big candlesticks that follow news releases. They will buy at demand level and sell at supply level. Novice trader will do the opposite and lose all his/her money to the market.

On demand level, banks and Institutions will buy after price moves down and triggers all the limit orders waiting there, and because the novice trader saw the big move of price he will start selling (to whom?) to the banks and Institutions that are starting to buy at demand level. The same thing happens in supply level, where novice trader will think the price will rally up and starts buying (from whom?) from Banks and Institutions that are waiting for price to come up to that level and triggers all the limit orders waiting there.