Can We Make A Living From Forex Trading

  The simple answer is yes, if we know what we are doing.  Forex Trading can make can make us rich overnight if we have the right trading technique and a capital big enough to trade at a higher lot. However, not all of us have huge sum of money at our disposal.  Thus the best way is to use an amount which we are comfortable of and with no urgency of using this money for our daily living.  If we can generate $50 per day trading forex, in 20 days we will have $1,000 and that is a good additional source of income for most of us.
  So how can we go about making this $1,000 a month a reality for us?  Well, the first step is to learn some basics on forex trading.  Today getting information on forex trading should be relatively easy as we can always "Google" it out.  After we have a basic knowledge on forex, we can then go to the next step, which is trade online using a demo account.  I think almost all trading platform on forex will have a demo account for us to trade in.  It is very important that we use a demo account to practice forex trading initially as we are new and do not have any experience trading.  And we do not want to risk our real money while learning to trade.  By learning through a demo account, we can get our strategies right and experience how forex trading is like before we go on live, using real money.  It is advisable that we practice at least 6 months using the demo account until we are earning consistent income with the demo money before we even want to think of using the real account with real money.  It is said that we need a strong mind to do forex trading as this will be very important to our success of making a consistent income.  A strong mind will control us psychologically not to be greedy but to set a profit target every time we open a trade. The other important issue is that we must set a stop lost on our every single trade.  As we know there is no guarantee of winning every single time we trade as we all cannot predict exactly where the market will go.  So, the only thing we can do if the market moves against us is to cut the lost by setting a stop lost in our trade.  The secret is that if we trade 10 times and have 5 winning trades and 5 losing ones, if we set to take profit at 30 PIPs and cut lost at 15 PIPs, then eventhough we have 5 winning trades only, 30 PIP - 15 PIP = 15 PIP we still have a positive gain overall as set our winning trade 50% higher than our losing ones. We mentioned just now, if we can earn $50 per day on average we can gain $1,000 per month but what if we managed to salvage $100 or even $200 per day?  These will mean $2,000 and $4,000 respectively every month. Ok, I will let you think on your own the earning potential of forex trading for now.  I will discuss more on my future blog post.