Before you read this article I want to make a couple of things clear.
There is no ‘magic pill’ when it comes to trading Forex. The key is long term consistency otherwise you get eaten alive.
Forget about making 20% per month. It isn’tgoingtohappen. You’ll be worth half a billion in 6 years with starting capital of $1,000 if it was the case. That’s what marketers want you to believe is possible. Don’t fall for their crap.
Hanging around an internet forum with other newbies is not the way to make money. They simply reinforce each other’s bad habits.
After 23 years trading on Wall Street it pains me that I even need to make those points.
At first I found it funny. I’d go into the forums and be totally gob-smacked. How could anyone fall for this shit?
However, I quickly realized that people have simply been horribly misled by internet marketers and scam artists.
It makes me sick.
I spent 23 years on Wall Street with 8 firms. My job was to trade high net worth client accounts.
I am partly responsible for why the rich keep getting richer. I was a small cog in a big wheel designed to extract money from the markets.
Don’t believe me?
You should be sceptical. It means that you are far and above what the average online Forex trader is capable of.
It also means that you will understand the words on this page better than anyone else.
Here, with all the dogmatism of brevity is an exact guide to how you can make big trades in the Forex market.
This guide will be complete with examples, screenshots, proof, and real trades.
Let’s get started.
#1. There is only one opportunity left in trading
People will have you believe that there are lots of different ways to make money from trading.
They are wrong.
There is only one way.
In all my years in New York I have never seen anyone make bank in the markets any other way.
You have to have a positive risk:reward ratio, because you need to be able to lose most of your trades, yet still come out with a profit.
In other words, your potential gain in any given trade must be more than your risk.
For example, I recently sent out an email to traders on my list telling them to go long on GBPAUD.
Here’s a screenshot of that email:
This trade ended up making 472 pips after I decided to move the take profit to 1.8997.
The risk on this trade was 78 pips. Which means it wiped out 6 losing trades. Even if I lost 6 out of 7 trades I would still have broken even.
(In case you wanted to know about why I decided to enter this trade, you can watch the video below.)
Not every trade turns out this good. Far from it.
Most of my trades are small losers. Then I get 1 or 2 big trades like this that wipe all of them out and gives me a profit on top of it.
Here is a screenshot of the trade summary for a typical month:
(BTW the image above was taken from The Pattern Trader Facebook group. About 700 traders got emails containing all of these trades.)
Can you see how many small losers there are?
And then every now and then a big winner comes in and wipes them all out.
I lost the majority of my trades, yet still came out ahead with 593 pips.
Despite what you might think. This isn’t easy to do. If you’ve lost 5, or even 10, trades in a row, do you have the guts to take the 11th trade?
Most people don’t, which is why most people lose money in this game.
But let’s say you DO have what it takes. You are able to follow instructions and keep trading, because you know eventually it is going to work out.