In today forex faq, we have a question from one of our fellow readers asking me to share some secret in trading that can help him to make profits of 50 pips safely very day.
Below is the question:
I am new. I want to learn and earn a lot from it. Please help me. I want short cut. Please share some secret and give some advice on how I can do sure profit trade. When is the best time. I want to get 50 pips per day safely at this first time.
I must say that this question above reflects the thinking of 90% of new traders as I once had the same thinking as well.
First of all, let me tell you that it is really possible to earn a lot in forex trading but the amount you earn is very dependent on the amount of money you have in your account.
If you have $2,000 in your account and wish to make $20,000 a month, then I will tell you that this will never happen. If you ever heard something promising you this, then I can assure you that they are marketers who just want to sell you something.
In fact, if I am a marketer and not a real trader, I will just tell you the short cut is to buy my course and you will be able to make 50 pips everyday without failed.
But I am sorry to say that I am a real trader and I totally understand how forex trading works. I am not saying that it is impossible to make $20,000 per month from trading forex but it is just that you must have a sizable amount of balance in your account to achive that.
If you have $60,000 and your strategy makes 30% growth to your account every month, then you will be making $18,000 per month already.
Therefore how much you make rely a lot on the amount of money plus the growth that your strategy can provide you. My suggestion for you is to start small and slowly accumulate your fund to a big amount and you will be able to make a decent income every month.
Secondly, I just want to tell you that there is no secret that can 100% assure you that you will make profits for a particular trade. Even the best trader on earth do have losing trade. If you wish to become a profitable trader one day, then you must get rid of this Holy Grail mentality as there is no Holy Grail strategy in forex trading.
What we do as a trader is to come up with a strategy that gives us a higher winning percentage of at least 70%. With this percentage of winning, we will still be getting 3 losing trades for every 10 trades taken.
However when coupled with high risk reward in a strategy, we will be able to make good profits every single month without failed. I can promise that you will be able to make consistent profits from trading every single month without failed but I can’t promise that you will win every single trade every month.
The secret to profitable trading lies in having a strategy that have a decent winning percentage plus a risk reward of at least 1:2.
If you have been following me, you will see that I have trades that go as high a risk reward as 1:4.
If I risk 5% on that trade, I will be making 20% growth to my account if the strategy makes me a winning trade. That is exactly how I stay profitable every single month since 2009.
Lastly, you ask me if there is any short cut in learning forex. I have to say that it is impossible to start making money one or two weeks after learning a course. Most of you have been seeing ads by marketers who claimed that you can start making thousands of dollar the very next day after taking their course.
The truth is no matter what course you take, you must still practice what you have learned on a demo for sometimes before you can go live. This is because you need the demo account to hone your discipline plus improve your execution skills. You will only trade live after you manage to have at least 2 consecutive months of profits in your demo account.
I just want to be frank here in my blog as I want all of you to have success in trading forex one day. The only way you can succeed is to know the truth behind forex trading and abandon those marketing promises you have seen so far.
I hope that I have answered your question and do feel free to email me if you have any problem.