(air whooshing) – [Jarratt] In this video, we'll be showing you the exact steps you can start taking today to generate an incomefrom your forex trading.
We'll also be explaining why the way most people try and do this will never work for anyretail trader online.
Hi, it's Jarratt here from Forex Source and just before we begin, don't forget to follow and subscribe to us so you're notified every time we release new content.
Now, if you're trading forex, you probably wanna be making an income from it as quickly as possible.
Now, most retail traders believe that the best way to achieving this is to find a proven trading system, follow it methodically and then use leverage togrow their account quickly and this is one of thebiggest myths out there and if you follow that line of thinking you are doomed to fail.
Now, you might have already been caught in this trap and started to realize that it's not quite that simple.
Now, the good news is that there are better processes that you can follow togrow your trading account and generate that income and it all begins with learning how to trade properly, because professional traders use a combination of fundamental and technical analysis.
Most retail traders use oneor both of these concepts in completely the wrong way.
The most common mistakethat you're probably making is that you rely solelyon technical analysis, price charts and indicators.
You sit at your desk staring at charts just waiting for one of them to give you a signal.
The reality is that professional traders find trades using fundamental analysis.
Once they know which currency to trade, when to enter and in whichdirection to trade in, they then look at the technicals.
Their technical system merely helps them find the entry and the exit.
If you don't trade like that then you're missing out onthe professional approach.
It also explains why you can't seem to get any consistencywith your trading results.
Now, when you incorporatesome fundamental analysis, you'll start to notice drastically more consistent results.
Now, the next secretto generating an income is to trade without leverage because too much leverage is the number one killer of trading accounts.
Trading without leverage means that for every $1000 in your trading account you only take each tradewith one micro lot.
So for every $10, 000, you trade one mini lot; for every $100, 000, youtrade one standard lot.
And that roughly, very roughly, equates to about 1%fluctuation on your account for every 100 pips won or lost.
In other words, you need to lose about 10, 000 pips to completely wipe out your capital.
This little change will allow you to hold trades longer and manage them with confidence rather than to haveemotions like fear or greed.
And that will feed into the consistency to help you try generating more consistently profitable performance.
And the final trick is towiden your stops basically.
So don't try to tradewith 10 or 20 pip stops because what's gonna happen is you're just gonna get whipped out, in and out of trades too easily.
Instead, look to use bigger stops of 100 to 200 pips.
That will allow each trade to breathe while not getting stopped out and whipped around by volatility.
Now, when you apply those three tricks, you're gonna start to build a record of consistent performance, and then what you can do is you can sign up to one of the many trade copying websites, these are also known associal trading websites, and those websites effectively let you sell your tradingsignals to other traders.
And that will provide you with subscriptions that repeat every month.
And the trick here is toavoid spending that money.
Instead, the money from thesubscriptions is reinvested back into your trading account, so as your balance grows, you can increase your position size without using leverage.
This has a compounding effect on your account balance and ultimately, your income.
You should also look forany other ways you can to increase your trading income.
And every new income you generate should be reinvested and compounded to help you grow your account.
And very soon you'll havea large enough account that you can take trades big enough to yield profits that youcan comfortably live on.
So don't fall into the trap of trying to use lots of leverage and increase your smallaccount balance quickly.
The only ones that benefitfrom that are the brokers.
The key here is to build multiple sources of income that don't distract you from your trading and then reinvest those incomes into your own account, which will build your profits much faster.
And it will take time to achieve, but that is something realistic will actually yieldresults you can live off.
And in the real world, that's the fastest way to generate an incomefrom your forex trading.
Now, before we go I'd love to know: what's the biggest question you have about the forex markets? Write it in the comments below and then subscribe and follow us and we'll make a videoanswering your question.