How to Profit From Trading? How much do professional forex traders make? These questions we can answer, but first, you will first need to learn the game behind the trading.
I am going to show you exactly how this works and how you can profit from it in this article.
It's not about how to make money in forex fast but it's about learning currency trading basics and applying them to a system.
Whether you have thought about trading like this or not, trading is essentially like an enormous game.
To win, you have to take chances and bank on the price moving in your direction AFTER you make an entry. Also read about the Forex Mentors and the best investment you can make.
How to Profit From Trading: The Reality Behind the Scenes of Trading:
For traders, our profit comes from capturing the price movement once we make a trade entry.
So your profit comes from your ability to buy at the bottom or sell at the top.
This is how the game really works... It's like currency trading for dummies.
To be profitable, the price will need to move AFTER your point of entry.
So when you make a trade, you need to consider how to the price movement will go before you enter the trade. If you believe it is going up, you make a buy trade. If you think it is going down, you will sell.
Let's use a buy trade for our example.
For you to profit from this, the price must go up after your entry. The upward movement comes from traders making buying decisions just as you did.
So for you to make a profit, other traders have to make Buying decisions at the same time as you.
Then for it to continue to your direction, they have to continue to make buying decisions that will move the trade in your direction.
The same concept can be applied for a short trade. Other traders have to make selling decisions at the same time as, and after, you would make your selling decision.
That is the key point of the game...
Without these decisions happening, the price cannot move in the direction of your favor, and you will not make a profit!
Your Analysis of Other Traders and their Decisions: Successful Currency Traders
Now that you know what is going on behind the scenes you can use that insight to help you make better buying decisions.
In a buy trade, be sure always to be trading in areas you KNOW others are going to be BUYING after you.
In a sell trade, be sure always to be trading in areas you KNOW others are going to be SELLING after you.
To do that your analysis of price action must be focused in on areas of trader decisions.
Ask yourself what other traders may be thinking, and where they will be making their trading decisions.
Once you master this approach then and only then, will you start to make money.
The best and most powerful analysis is not the analysis of price, but rather, the analysis of other traders and their trading decisions.
Think about it this way...
If you know exactly what your opponent is thinking in a chess match, football game, soccer game, baseball game, etc.. you can easily defeat them...
Trading is the exact same...
If you know what the majority of other traders are thinking, you will be able to profit from their decisions.
So the main way to profit is by knowing what others are thinking this will help you take advantage of the situations and make winning trade entries
When price moves up or down, there will always be a winner, and there will always be a loser. Aim your approach to understanding all price action from the perspective of other traders actions and their decision.
Consider this quote by one of the greatest inventors of all time:
"Many of life's failures are people who did not realize how close they came to success and gave up."
Don't give up trading. Pick yourself up when you are down and learn from your mistakes. Place your focus on what other traders may have done and capitalize on their decisions, whether they were right, or whether they were wrong.
Trading can be difficult to master I think you understand that. But if you can analyze the charts and figure out who is getting in or who is getting out at the time, you are well on your way to becoming a better trader.
Remember that news and other factors will most of the time result in substantial moves up or down because of traders emotions. Capitalize on this by learning what is going on and how you can get in at the same time other traders are.
Be sure to check out some of our strategies on our website! A great strategy that we developed which is called the Rabbit Trail Trading Strategy, trades channels and will show you what traders are thinking when the price action hits this area on the charts.
Stay tuned for mroe articles about forex trading tutorial video, forex trading demo, forex trading strategies, best way to trade forex profitably, and lastly how to become a day trader online.
Thank you for reading!
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