The secret of how to make big profits with online FOREX trading is staring traders in the face - but most traders dont see it. The secret is ... Ignore the usual advice you are given, on how to make money in online FOREX trading - and do the opposite! Read each myth outlined below - which are touted as the great ways to make money on the FOREX then, when you know whats false, read the truth in the Reality that follows each myth. Myth 1: Day Trading Makes you Money No, it doesnt - and its obvious why. Daily movements are totally random - and by the time you throw in commission, and slippage, youre guaranteed to lose money. This myth is perpetrated by brokers, and vendors on commission kickbacks - thats why its such a common myth. Remember you lose they win period. Reality - the way to make money in online FOREX trading is to follow the longer-term trend. The big currency trends last for months, or years so lock into them, and pile up huge profits. Myth 2: You can Buy Success - by Following a Guru or Tip Sheet. For just a few hundred dollars, you can learn systems that trade with 90% accuracy or more. Yeah, right. If thats the case, why dont the vendors and gurus simply keep quite, and make money for themselves? Answer - because they cant - its all sales hype. Reality - if you want to make huge profits by FOREX trading, the reality is - no one can give you success - you need to take responsibility, and do it for yourself. All the great traders do this - and you must too. Myth 3: There is a Safe Way to Trade Currencies Most traders dont like risk - they believe people that say that you can trade safely. Traders try and follow scientific theories - and believe it when told, that they only need to risk a few hundred dollars, to make thousands. Reality - online FOREX Trading involves risk - pure and simple. If you dont want to take risks, put your money in the bank, and earn interest. If you want to make money, be selective on the trades you make - and have confidence in your own judgement. If you take calculated risks on trades with good odds, you will pile up huge profits. Myth 4: Buy Out of the Money Options for Leverage In FOREX trading, options give you unlimited profit potential with limited risk - so brokers tell you to buy out of the money, cheap options with little time value. These options give you greater leverage - and you can then make huge profits, when your option trades in the money Reality - out of the money options, with large time decay, are cheap - because the odds of them trading in the money are small. In FOREX trading, this is the same as backing the outsider in a horse race - of course, you can be lucky, but over time, you lose. Buy in the money options, with lots of time value. You wont make as much per trade, but you will make huge profits over time - and your odds of success are far better. Myth 5: Timing the Entry to a Trade is Crucial Many brokers and gurus say you need to be in, ahead of the move - and predict the market tops and bottoms. You will then get all the profit from the move. Reality - trying to pick tops and bottoms is a mugs game - wait for confirmation, and then catch the trend as it gets underway. Sure, youll miss the absolute top and bottom, but no one can pick those anyway - so dont even try. If you get even 70% of the big moves in FOREX trading youll make huge profits. Read articles on breakout systems, for more information on how to do this. Step Away from the Crowd As you can see, the way to make money in online FOREX trading is to step away from the 90% of traders who lose money - and join the elite 10%, who make the big profits from the big moves. Ignore the conventional wisdom, and understand the reality - and get rich! |
