So, you're a beginner in forex and need a simple way to beginning turning a profit. Or perhaps you're an experienced trader who has just had trouble turning a profit? There is a simple set of steps you can take.
1) Use a proven system. This may sound very obvious, but you need to use a proven system, or nothing else matters. How do you get a proven system?
You can find systems in forums. You can find them for sale. In general, you want to stay away from the highly commercial looking websites. They are often put together by people who don't even trade. The system must be proven.
2) Avoid systems that trade "fast" timeframes. These are problematic. It is a known factor that the market becomes more random on the shorter time frames (anything less than 1 hour bars/candles). Your daily bars the most stable. The trends are much clearer there (so are the trend reversals).
Honestly, why not make it easy on yourself? There is the lure of fast, easy, compounding money on the really fast charts. That is an illusion. Ignore the phantom and go after what is real. Stick with the slow time frames.
Does it seem like I'm harping on this point too much? It's really that important. Ignore it and your own financial peril.
3) Trade small. Find a broker that offers micro lots. Most won't advertise it, you'll have to write to them and ask. Micro lots are sized at $1000 instead of the $10,000 mini lot size.
Do you want to learn more about how I trade? I have just completed my brand new guide, "Forex Trading - What Finally Worked For Me".
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Nathan Pennington is a forex trader and the author of Winning Forex Trading -THE Definitive Guide Article Source: http://EzineArticles.com/?expert=Nathan_Pennington http://EzineArticles.com/?Forex-Trading---How-to-Start-Making-A-Profit-In-Forex&id=462349
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