How Anyone Can Make Money In The Forex Market

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How would you like to finally discover a way to make money in Forex?

Okay, so that was quite a bold statement, and it sounds pitchy and for some scammy, but I never speak about such things without results.

The thing is that I’ve doubled real money accounts trading Forex and I’ve done that several times in the past few years. I’ve doubled my own demo and real money accounts and I’ve doubled accounts for my clients too.

In this article I will reveal how anyone can make money in Forex without any trading knowledge.

The beginning

Before I explain how you can make money in Forex I would like to tell you a short story. A story about how I started trading Forex.

I remember my first day trading Forex just like it happened yesterday. Actually, I would not call it “trading”, it was more like gambling. I did not knew almost anything about how Forex trading works.

All I knew was that if I open BUY position and the price goes up, I will earn money. And if price goes down I’d better be holding SELL position, otherwise I will lose money.

So I was browsing on Internet and looking for some ways to make money online. After a couple of hours I’ve discovered some “secret formula” which told me I can outsmart everyone and legally “steal” money from Forex. I did not had any clue what Forex is, but I felt so special discovering that “secret formula”. I’ve bought that trading strategy with some secret software and tried to make it work according to their instruction manual.

It wasn’t working and I wasn’t making any money. But when I tried to use that “secret formula” I actually learn how to use MetaTrader 4 platform, how to open trades, how to analyze price patterns, etc. I’ve learned basics of Forex trading.

Making long story short, I lost several accounts, just like mostly every trader does in the beginning. But the problem was not losing the money, the problem was that repeating failure trying new strategy after strategy.

It took me about a year to realize that there is no special formula, and if there is one, you won’t find it online for $47 :-)

I bet you know that feeling. You discover some new indicator, new strategy, new trading secret, new technique, but then soon you realize it was just another thing that does not work.

Over the last few years I have met dozens of traders in person and hundreds or traders online, who were struggling in trading just like I was. Nearly all of them, just like I did, had the disease that I call “indicator mania”. It’s when you switch from indicator to indicator trying to find a holly grail.

Now, when I know how to create profitable, successful and robust trading strategies, it looks all so funny. It looks so silly to even try using any trading indicator. It sounds so silly to trade Forex manually, unless you have 18 hours per day to dedicate to Forex trading all alone.

I am not saying manual trading does not work. It does work and I know very successful Forex traders who are making money trading Forex manually. If you know Jarratt Davis then I am sure you would agree with me too, that manual trading is possible and it works.

The problem with manual trading is that you need to spend all day reading economic news, watching Bloomberg television and following all central banks to know about their latest policies. This means you need to watch many sources of information all day and you cannot miss a thing. Obviously, you can access all that information in one place, for example at FxEdge, but personally, manual trading is not for me.

Automated Forex trading makes it possible for everyone

I am a fan of automated trading. Some people call it algorithmic trading, but actually I use both of them at the same time.

I use special technique to create algorithmic trading strategies and then automate them. This way I do not have to spend all day with one or just few trading strategies. When you have automated trading strategy it just runs and trades Forex automatically 24 hours a day Monday-Friday non-stop.

Make sure you understand it correctly. Even if automated system is designed to work 24 hours a day, it does not mean it will trade Forex all the time. It depends on the algorithm and the trading strategy that’s programmed.

I have created thousands of automated trading systems and all of them work differently. Some are opening several trades per day, others might open just a single trade per month. I love experiment with different strategies and different trading approaches.

Even if one trade per month sounds very little, tailoring the same strategy to 10 currency pairs might produce 10 trades every month. And one of the best things when trading multiple currency pairs is diversification. If you get few losing trades on EURUSD and AUDUSD, you might win them back on GBPUSD and USDCAD for example.

Take a look at this picture below. It’s the strategy for AUDUSD pair back-tested on the last 12 years of history price data, which is 144 months. It produced 280 trades, so if we divide 280 by 144 we get 1-2 trades a month on average.

AUDUSD SQ report

It’s not that bad, but if we apply the same strategy for other pairs as well, results would be different. Below is the picture of the same strategy applied to 3 different currency pairs.

Trading Portfolio

This portfolio generated 1,649 trades over the 12 year period, which is 11 trades per month on average. That’s one trade every 2 days.

Fact: Anyone can make money in Forex, including you

Okay, I know what you’re thinking. You’re thinking that it’s too good to be true. You think that you’ve tried everything and none of that worked for you. You’re thinking that everything I tell is just a bull***t and I am just trying to sell something to you.

If you think like that then first I would recommend you reading Rimantas’s blog post about Forex scams that he wrote some time ago. It will kind of confirm what you already know and suspect, but it might also show you some new things that can save you from giving away your money to scammers.

Now, if you are ready to read what I have to share about how can anyone make money when trading Forex, then let’s begin.

By saying anyone, I mean any person who is ready to make money in Forex by having an account opened with Forex broker and already deposited some real money in their account.

You cannot make money trading Forex if you do not have an account and real money deposit. I think it’s obvious.

So I will assume that you already have real trading account and money deposit with some Forex broker. If you do not have account yet, I would recommend Tradesto broker, because that’s what I am using myself too and my trading strategies are tested with Tradesto. It does not mean they do not work with other brokers, but it’s always good practice to use the same broker that the strategy was tested on.

The “Secret” to making money in Forex

So here’s the secret. Well, it’s not a secret actually, it’s just something very simple, but not many people know about it.

When someone wants to make money trading Forex and they do not know anything about trading, they have two choices.

  1. Study Forex trading for 5-10 years, possibly lose several trading accounts and then finally learn and win in Forex (perhaps). No guarantee there for sure.
  2. Follow a winning trading strategy and do the same trading actions on your account. If the strategy you’re following is making money, it means you will make money on your account too. If that strategy is losing money, you will lose money too. Simple as that.

I don’t know about you, but I would go with option no. 2.

It’s very simple. If you see someone doing things right and you do the same, then you will get the same or almost the same results. In some cases you can get better results, but let’s not get too excited here.

Here’s an example for you.

Imagine you arrive at L.A International airport and get a car. Now you want to drive to Beverly Hills. Can you do this by yourself without any help if it’s your first time in L.A? I bet no.

But if you had a friend who knows the city and he is driving his own car to Beverly Hills in front of you, do you think you will get to Beverly Hills too if you follow him?

Of course you will get to Beverly Hills.

LA

And if you were using GPS to give you directions driving from L.A. airport to Beverly Hills then you would simply be following a system. It’s kind of a strategy for driving from one destination to another.

So the idea here is simply open the same positions on your account when you see them opened on the trader’s account you are following. I usually call it “master account” or “server account”.

Obviously it would be close to impossible to do this all by yourself. That’s why technology called “copy trading” was created a few years ago.

What is copy trading and how it works

Copy trading a simply the action of replicating or copying the trades from the master account to a client account.

Master account can be called by different names. It could be signal provider account, master trader account, leader account, chief trader account, trading server account, and similar. But the use of them is the same.

Master account is just a regular trading account that has a trading strategy working on it and it is registered to provide trades to client accounts or I would prefer to call them followers.

Networking

Copy trading is a completely automated process. Leader account leads with its trades and follower accounts are following it. This simply means that all follower accounts will repeat the same trading operation immediately when a leader account generates them.

If leader account opens a trade then followers will open the same trade too. And if the trade is modified (e.g. stop loss or take profit changed) or closed, all follower accounts with do the same.

Because it’s an automated process all trading actions are replicated automatically no matter at what time they happen. It means you can be sleeping, spending time with your family or shopping for groceries and at the same time have your trading account following some signal provider and making you money.

How to start copy trading

It’s very easy to start copying trades to your account. There are several platforms that allows you to do that. You can setup everything in just a few minutes and start receiving trades the same day or the same week.

The most difficult part in copy trading is making the decision which leader account to follow. If there was only one signal provider on earth you would just copy it and worry no more.

But the reality is that there are so many providers out there these days, which makes it very difficult to choose the right one to follow.

And it’s almost the biggest decision you need to make. If you choose wrong provider you might lose your investment. If you choose the right provider you might be earning money that simple as it sounds.

Choosing the right Forex Leader account to follow

One of the biggest pros of algorithmic trading strategies is that they are quite easy to evaluate by numbers. Mainly I look at these 5 parameters to tell if the strategy is worth something.

  1. Minimum deposit requirements
  2. Return/Drawdown ratio
  3. For how long their strategy is successful
  4. Are they trading consistently
  5. What’s your possible ROI

Obviously there are much more factors you can look at when making the decision which strategy to follow, but personally those things outlined above are the most common ones that I use.

I won’t go into details to explain each of them in this article, but you can read more about them in my other post on how to choose the best trading strategies.

Conclusion

It’s definitely possible to make money in Forex without the need to learn trading yourself. You just need to follow a successful trader. You could even copy several strategies to your account if you do it right. The key is to use the right account size and position size and choose signal provider account to follow that fit your needs and risk appetite.

So tell me, have you ever followed signal provider? Post your comments below.

 

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