We all know that online Forex trading involves risk – but on the other hand it offers one of the few ways to start with small stakes, and build real wealth very quickly.
This article is all about taking calculated risks at the RIGHT time to make triple digit annual gains – Let’s find out how to do this.
Much of this article does not adhere to conventional investment wisdom – but that’s not a problem, as 95% of forex traders lose all of their money or only manage to make minor profits.
Let’s start with an interesting fact:
I once knew a retired woman of 81, who had never traded currencies before yet, learned Forex trading in just three weeks.
She then started trading and made 129% annualised profits over 3 years!
She broke many conventional online currency trading rules – but that didn’t bother her at all she was to busy making great gains.
Let’s look at how she made big gains in her online currency trading.
She had a simple method:
1. She drew her charts by hand, and looked for valid support or resistance. When prices approached these levels, she looked for it to hold or to break to trigger her trading signals, with the following tools.
She used just two indicators to time her entry, (stochastic and RSI) and make sure she was trading with price momentum and the odds were on her side.
She went the way price momentum told her – but it’s the next points that will surprise you and really gave her currency trading success, and triple digit gains:
2. She traded infrequently
In her first year, she traded 3 times. In her second year, she traded 5 times. In her third year, she traded 3 times, that takes a lot of patience!
Her logic was:
Why trade if the risk reward was not heavily in her favour?
Many impulsive, novice and impatient traders could learn from this bit of Forex education – as most forex traders trade too much which diminishes their chances of currency trading success.
If you think about it, in currency trading how often do the really big trends come along? - Just a few times a year and these were the ones she hit hard, using her Forex trading signals.
3. Hit trades hard.
You hear a lot about diversification being the way to build wealth - but this lady held the view, that all it does is dilute your profits.
Therefore, she only focused on one trade - and piled as much money as she could afford into the position.
She then simply placed a monetary stop - and if she was wrong, she took her loss in good humour and waited for the next trading signal to come along.
4. Courage and Discipline
The trades she risked a lot of money on were only the trades she believed would be the big winners, and likely to pile up tens of thousands of dollars not a just a few hundred that many traders I know would be happy with.
Therefore, she let the trend develop and ignored short term volatility - and anyone wanting to learn Forex trading should do the same if they want big profits from forex trading
Her view, (which is right) was that most Forex traders want to make money - but lack the courage of their conviction - and cannot take accept a big profit.
They try so hard to protect their profit when they make one, which they move stops up too quickly - or grab their profit too soon.
Sometimes she would see her equity dip by thousands in a single day, but she stood firm. As she put it:
“I have my eye on the bigger prize” - and that was a profit target that was far bigger than most traders aim for or have the courage to hold on for.
Her currency trading system worked and it worked well, it wasn’t rocket science and it broke a lot of normal forex trading rules, but it worked.
She didn’t trade much, didn’t diversify, and didn’t trail stops quickly. However, thinking about it, isn’t that what the losing majority of traders do?
As she says: “Why join them? I’m making profits – Period.
If you trade in online currency markets, and want to make 100% annual gains - then maybe you should consider how she achieved them.
It makes total sense.
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