How I Finally Started To Make Great Money Day Trading Forex:
It was a long and bumpy ride figuring out how to make money day trading forex. As a stock trader (weekly from my MSTS) I had great money management and market psychology down but I needed to transfer this across into a whole new arena. Day trading forex.
At first I knew new traders always jump in where professional traders fear to tread. So rather then lose money whilst I honed my skills on a demo account. Demo accounts are great in forex. It’s live data and you really get a feel how the markets move. But you must take it seriously. There’s no point in demo trading if you are going to mess around. Treat it like an airline pilot would treat a training simulator. Seriously. It’s there for you to learn your method, hone your skills and get a feel how it works.
I demo traded for over 10 months. Yes you heard me right. 10 months. I know most trainers will tell people to demo trade for a few months. I do not think it is long enough. Airline pilots need hundred of hours training before they are let loose. Why should you be any different? The first three months, whilst never blowing out my accounts, because I always traded on low leverage, I was up to 30% down in some cases. And that for day trading is far too high! Day traders should never be more than 18% down.
I traded all kinds of different ways. From 4 hour charts to 30 second charts. Breakouts to M.A crossovers. I could never consistently make money. I’d make great money one day only to lose it all the next. Or make great money on one trade only to lose big on the next.
Then evolution took place. I started to think “just because you are day trading doesn’t mean you have to trade several times every day.” Heck it doesn’t even mean you have to trade every day.”
I mean if you made $1,500 on Monday but then lost $1,000 on Tuesday and Wednesday only to make $1,500 on Thursday and the lose $1,000 on Friday. A Much better system would be to try and eliminate as many of those losing days as possible. So if you had 2 $1,500 and just ONE $1,000 losing day you now have $2,000 profits.
So the key for me was to eliminate the losing days as much as possible. Trade from the larger time frames and use the flow of the markets to help you. And do not trade every day. Rather keep your ash safe on those “counter trade or choppy days”. And that’s when my profits started to make consistent gains instead of 1 step forward 1 step back every time.
Mark Crisp
Forex Trading Robot
