• Section: Money Guide - Category: Invest Online
• Written by Sacha Tarkovsky

So you want to trade forex markets and you're wondering how to get a trading plan together to make money?

Well here we are going to look at the basics that any forex trader needs to consider and pitfalls to avoid to get on the road to longer term profits.

The opportunity

You know the advantages of currency trading, but knowing these won't make you any money. You need a trading plan that will help you turn these advantages into profit.

Forex trading is one of the few ventures where you can turn small stakes into large profits quickly. Most traders however lose and the reason is they don't study forex trading basics and the plan they need to succeed.

1. A method

Of course, you need a method you can use and this method needs to simple.

Simple methods are easy to understand and are more robust in the face of brutal market conditions.

If you don't understand why your system will not make money

then you will never have confidence in it and you need this to have the discipline to follow it through losing periods.

Keeping your method simple will help you maintain your discipline which is vital to forex success

Basics of a method

Forget short or intra day trading, these methods don't work.

It's the equivalent of flipping a coin. To make money you need to lock into the longer term trends that make the big profits.

2. Work smart not hard

The amount of effort you put in to forex trading has no correlation to your profitability.

After you have learned a method you need under an hour a day to trade and that's it.

You method should be based on support resistance and a few confirmation indicators

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