Currency Pairs Correlation in Forex Market: Cross Currency Pairs

As a forex trader, you can check several different currency pairs to find the trade setups.

If so, you have to be aware of the currency pairs correlation, because of two main reasons:

1- You avoid taking the same position with several correlated currency pairs at the same time, not to increase your risk.

Additionally, you avoid taking opposite positions with the currency pairs that move against each other, at the same time.

2- If you know the currency pairs correlations, it may help you to predict the direction and movement of a currency pair.

How?

Sometimes the other correlated currency pairs form stronger signals that help you to take strong movements on the other currency pair.

How Currency Pairs Correlation Helps You to Trade

Let’s start with the four major currency pairs: EURUSD ; GBPUSD ; USDJPY and USDCHF.

In both of the first two currency pairs (EURUSD and GBPUSD), USD works as the money.

As you know, the first currency in currency pairs is known as the commodity and the second one is the money.

So when you buy EURUSD, it means you pay USD to buy Euro.

In EURUSD and GBPUSD, the currency that works as the money is the same (USD).

The commodity of these pairs are both related to two big European economies.

These two currencies are highly connected and related to each other and in 99% of the cases they move on the same direction and form the same buy/sell signals.

Just recently, because of the economy crisis, they moved a little differently but their main bias is still the same.

What Does It Mean?

It means if EURUSD shows a buy signal, GBPUSD should also show a buy signal with minor differences in the strength and shape of the signal.

If you analyze the market and you come to this conclusion that you should go short with EURUSD, and at the same time you decide to go long with GBPUSD, it means something is wrong with your analysis, and you are wrong at least with one of your decisions.

So you should not take any positions until you see the same signal in both of these pairs.

Of course, when these pairs really show two different directions (which rarely happens), it will be a signal to trade EURGBP.

I will tell you how.

Accordingly, USDCHF and USDJPY behave so similar, but not as similar as EURUSD and GBPUSD, because in USDCHF and USDJPY, money is different.

Swiss Franc and Japanese Yen have some similarities because both of them belong to oil consumer countries.

But the volume of industrial trades in Japan, makes JPY different compared to CHF.

Generally, when you analyze the four major currency pairs, if you see buy signals in EURUSD and GBPUSD, you should see sell signals in USDJPY.

If you also see a sell signal in USDCHF too, then your analysis is more reliable.

Otherwise, you have to revise and redo your analysis, or at least wait for another trade setup.

EURUSD, GBPUSD, AUDUSD, NZDUSD, GBPJPY, EURJPY, AUDJPY and NZDJPY usually have the same direction.

Just their movement pattern sometimes becomes more similar to each other and sometimes less.

What Do I Prefer?

If I find a sell signal with EURUSD and GBPUSD and a buy signal with USDJPY, I prefer to take the short position with one of the EURUSD or GBPUSD.

The reason is that downward movements are usually stronger.

I will not take the short position with EURUSD or GBPUSD and the long position with USDJPY at the same time.

The reason is that if any of these positions goes against me, the other one will do the same as well.

So I don’t double my risk by taking two opposite positions with two currency pairs that move against each other.

How to Use the Currency Pairs Correlation to Predict the Direction of the Markets?

When there is a signal formed with a pair that has to be confirmed to form a trade setup, I refer to the correlated currency pairs or cross currency pairs and look for the confirmation.

For example, let’s say I see a MACD Divergence in USDCAD four hours chart.

But there is no close support breakout in USDCAD four hours or one hour chart.

I want to take a short position, but I just need a confirmation.

If I wait for the confirmation, it can become too late and I may miss the chance.

I check a correlated currency pair like USDSGD and if I see a support breakout in it, I take the short position with USDCAD.

Now the question is, why I don’t take the short position with USDSGD and I use its support breakout to go short with USDCAD?

I do it because USDCAD movements are stronger and more profitable.

One Currency Pair as an Indicator of the Other One

I use USDSGD just as an indicator to trade USDCAD.

It happens that you take a position with a currency pair, but it doesn’t work properly and you don’t know if it was a good decision or not.

On the other hand, you don’t see any sharp signal on that currency pair to help you to decide if you want to keep the position or close it.

In such cases, you can check a correlated currency pair and look for a continuation or reversal signal.

It helps you to decide about the position you have.

Sometimes, some correlated currency pairs don’t move the way they are supposed to.

For example, EURUSD and USDJPY go up at the same time, whereas they usually move against each other.

It can happen when Euro value goes up and USD value doesn’t have a significant change, but at the same time JPY value goes down, for some reason.

In these cases, you can use the below table to find and trade the currency pair that its movement is intensified by an unusual movement in two other currency pairs.

In this example, if EURUSD and USDJPY go up at the same time, EURJPY will go up much stronger (see the below chart).

Or if EURUSD goes up and AUDUSD goes down at the same time, EUR/AUD goes up strongly.

Another Important Example:

If EURUSD goes up and GBPUSD goes down at the same time, EURGBP goes up strongly.

Maybe this is the most important case that we can trade based on this rule.

It happens many times that EURUSD and GBPUSD move against each other and that is the best time to trade EURGBP.

Now you know why EURGBP doesn’t move strongly most of the time.

It is because EURUSD and GBPUSD move in the same direction most of the time.

For example, they go up at the same time.

Therefore, EURGBP doesn’t show any significant movement, because when both of the currencies of a currency pair go up or down at the same time, that currency pair doesn’t show any strong movement and direction.

I hope you know why a currency pair goes up or down.

It goes up when the first currency’s value goes up OR the second currency’s value goes down.

For example, EURUSD goes up, if Euro value goes up or USD value goes down.

If this happens at the same time, then EURUSD goes up much stronger.

The below chart includes almost all of these unusual movements and their impact on the third currency pair.

if EUR/USD and USD/JPY  then EUR/JPY  means if EUR/USD and USD/JPY go up at the same time, then EUR/JPY goes up much stronger.

What Is the Proper Risk Reward Ratio in Forex Trading?

It is very easy to find hundreds of articles on risk/reward ratio in forex trading.

But the problem is that most of those articles are not written by the real and professional traders.

By “real and professional traders”, I mean those who are consistently profitable currency traders and currency market investors.

Most of these articles are written by freelance writers who are paid to write articles.

Or maybe they are bloggers and webmasters who want to drive some traffic to their blogs and sites.

Most of these writers have never placed any order on the market throughout their lives.

The bigger problem is that novice traders believe each and every word of these articles, just because they are published on the Internet.

They don’t know that the directions that these articles give, are not applicable in live trading at all.

After reading these articles, novice traders try to apply them in their trades.

Misleading Articles

And, after such a long time of trial and error, they will think that they are not able to follow the trading rules.

So they give up.

But the problem was somewhere else: It is the information and directions of the articles that could not be applied in live trading.

For example, in most of the articles you read about risk/reward ratio, it is strongly recommended that novice traders should not even think about taking positions with a risk/ratio of as high as 1:1 or even 1:2 (I will explain what these numbers mean later in this article), and the minimum risk/reward ratio of the positions that new traders take should be 1:3.

There is nothing wrong with it so far.

But the problem is that these articles never clarify whether traders should have a low risk/reward ratio through having wide targets, OR, by having tighter stop losses.

As nobody likes to lose, specially new traders, they all think that they should make their stop loss as tight as possible to have a low risk/reward ratio trade, whereas this is a big mistake.

No matter how tight or wide the targets are, a trader cannot fool around with the stop loss.

Choosing the stop loss has its own rules that cannot be ignored and broken.

If you set your stop loss tighter than what it has to be, you will be stopped out easily even when your position is correct.

Something that looks even stranger in these articles is that they emphasize that “novice traders” should not take positions with 1:1 or 1:2 risk/reward ratios.

Does it mean that experienced traders can do it?

Are there different trading rules and techniques for novice and experienced traders?

The Same Rules for Everybody

Maximizing the profit and having 1:3 or 1:5 trades can be done by professional and experienced traders.

However, there are some technical and emotional difficulties in front of the novice traders to do that.

For example, to achieve a successful 1:5 trade, you may have several losing trades (I will tell you why), unless you know how to choose the strong trade setups.

This is not a problem for professional traders at all.

But for a novice trader who is learning the techniques and has to build his/her confidence at the same time, having losing trades can cause lack of confidence and excessive fear that prevents him/her from advancing to the next steps.

So we cannot believe and apply whatever we read over the Internet.

There are zillions of systems, techniques, indicators, robots and… that are absolutely useless when it comes to live and real trading.

What Is Risk/Reward Ratio?

After the above introduction, let’s see what risk/reward ratio is and why it is important in forex trading.

Risk is the amount of the money that you may lose in a trade.

If you’ve already read the money management article, you know that we should not risk more than 2-3% of our capital in each trade.

It means when we find a trade setup and we find a proper place for the stop loss, we have to choose our position lot size in the way that if the market hits our stop loss, we lose maximum 2-3% of our capital.

For example, let’s say we have found a trade setup with EUR/USD that has to have an 80 pips stop loss.

The account size is $5000.

If EUR/USD hits the stop loss, we should lose $150 which is 3% of our capital:

0.03 x $5000 = $150

It means 80 pips equals $150 (you can use the position size calculator I have on the money management article).

This $150 is our risk.

But what is the reward?

Reward is the profit that we can make in a trade.

In the above example, if we choose a 160 pips target for our trade and EUR/USD hits this target, we will make $300 (when 80 pips equals $150, so 160 pips equals $300).

This $300 profit is the reward.

So what is the risk/reward ratio of this trade?

It is 1:2 because:

150:300 = 1:2

The larger the profit (target) against the loss (stop loss), the smaller the risk/reward ratio which means your risk is smaller than your reward.

For example, if your stop loss is 20 pips in a trade and your target is 100 pips, your risk/reward ratio will be 1:5.

What Is the Recommended Risk/Reward Ratio in Forex Trading?

1:3 or 1:5 risk/reward ratio is achievable when (1) the market trends after forming a strong trade setup, and (2) you succeed to enter on time.

In most cases you should be able to hit the top and bottom of the trends, no matter on what time frame you trade.

Or if you enter at the middle of the way, the trend should be strong enough to give you another big movement and make a profit which is 3 or 5 times bigger than your stop loss.

You can do that.

Why not?

But there are just a few problems:

1. Markets usually trend only less than 30% of the time.

2. Some trends are not strong enough that if you enter with delay and while the trend is at the middle of the way, they can hit a target that is 3 or 5 times bigger than the stop loss.

3. There are many cases that you miss the trends.

You hesitate to enter, and so you miss the chance.

Or, you think you have found a trend whereas you are wrong and it returns and hits your stop loss, and things like that.

So you lose in many trades, because you want to catch a big one.

Therefore, in reality, you either have to lose in many trades, or, you have to have many of your trades closed at breakeven by the stop loss (because you will have to move the stop loss to breakeven when you are in a special amount of profit), or, you have to stop trading for such a long time and wait for a strong trend, until you can have a 1:3 or 1:5 trade.

Is It Possible to Catch the 1:3 or 1:5 Trades?

How is it possible to catch a 1:3 or 1:5 trade without losing so many trades or waiting for so long?

If you take a position with 1:3 or 1:5 stop loss to target ratio, and then you wait for it to hit your stop loss or target, you will have so many losing trades before having a winning trade.

The reasons are mentioned above.

1. Moving the Stop Loss Further

One solution is in moving the stop loss.

You should not let your stop loss remain at its initial position.

To have a 1:3 trade, the distance of your entry and your final target should be split into 3 parts (at least), while each part is equal to your original stop loss value.

For example, if you have a 50 pips stop loss, you should have a final target of 150 pips that should be split into three 50 pips levels.

Then you should move your stop loss in three stages.

In this example I assume that you take a 3% risk in each trade:

1. If the price reaches the first 1/3 level, you should move the stop loss to breakeven.

At this stage, if the price goes against you and hits the stop loss, you will get out without any profit/loss, BUT you should consider that you had an initial risk of 3%.

2. If it reaches the 2/3 level, you should move the stop loss to 1/3 level.

At this stage, if the price goes against you and hits the stop loss, you will get out with a profit that equals your initial risk.

For example, if your stop loss has been 3% of your account, you will get out with a 3% profit.

Therefore, such a trade will be ended as a 1:1 risk/reward position.

3. If it becomes so close to the final target, you should move the stop loss to 2/3 level.

– Hitting the Final Target:

Then you have to wait until it hits the final target or returns and hits the stop loss.

At this stage, if it goes against you and hits the stop loss, you will get out with a profit which is twice of your initial risk.

For example, if your stop loss is 3% of your account, you will get out with a 6% profit.

Therefore, such a trade will end as a 1:2 risk/reward position.

If the price hits the final target, your trade will close with a 9% profit.

Therefore, you will have a 1:3 risk/reward position.

So, to have a 1:3 trade, you will have some -3% trades that are those positions that hit the stop loss at its initial position.

You will also have some 0% trades that are those trades that hit the stop loss at breakeven.

Some of your trades will be +3% trades that are the ones that hit the stop loss at 1/3 level.

Some will be +6% trades that are the ones that hit the stop loss at 2/3 level.

And finally, some trades will be +9% trades that are the ones that trigger the final target.

2. Taking the Too Strong Trade Setups

Another solution is in taking the too strong trade setups on the long time-frames like daily, weekly and monthly.

Wait for the too strong trade setups.

They are usually strong enough to move the price for hundreds of pips, and so you can have wide targets.

How Many of Your Trades Will Be -3%, 0%, +3%, +6% and 9% Trades?

It is impossible to answer the above question.

It depends on many factors, including the trading strategy and the markets condition.

However, there is something that gives us a clue about the number of our 1:3 and 1:5 trades.

It is the fact that says market trends only 30% of the time.

It goes sideways 70% of the time.

To have 1:3 and 1:5 trades, we should have a strong trend, otherwise the price hits our stop loss.

It stops your position before reaching the final target, no matter what time-frame you use to take your position.

No need to remind again that in any of the -3%, 0%, +3%, +6% and 9% trades, your risk is the same which is 3%.

The first conclusion is that taking the risk and the position is up to you.

However, it is the market that determines how your trades will end.

This is something that all traders, specially the novice ones, should consider.

When you read in different websites and web pages that you should take the 1:3 and 1:5 trades only, then you should consider that you really never know how many of your trades will end as 1:3 and 1:5 trades.

Never Break Any of Your Rules

I set the stop loss of my positions based on the technical analysis rules.

I will never break any of these rules.

Some traders think that my stop losses are too wide, but they are not.

Some traders always have a fixed stop loss size.

For example, any positions they take, with any currency pair and any time-frame, has a 120 pips stop loss.

But, I mainly follow the rule of thumb we have for setting of the stop loss.

The rule says that you should place your stop loss in a position that it becomes triggered only when the direction you’ve chosen is completely wrong.

So, when I want to set the stop loss, I ask myself under what condition the position I have taken will be wrong?

The answer I give to this question is the position of the stop loss.

Are you new to forex trading?

Then learn how to take the strongest trade setups on the longer time-frames.

Read these article carefully to save a lot of time and money and become a profitable trader sooner:

  1. Monthly Time Frame Is the King
  2. Trading Strategies Don’t Work If You Don’t Choose the Right Living Strategy
  3. Make Your First $100,000 Trading Forex

Proper Risk Management in Forex Trading

You can sit at your laptop, trade forex and make a lot of money from the comfort of your home. This is too exciting and attractive to everybody. It looks like a very easy business at the beginning. You start reading about forex and soon you will realize that forex really makes money.

First, we are eager to find something that makes money. When we succeed to find it, we think about the ways that make more money with it. You ask yourself whether it is possible to make more money within a shorter time.

Human is infinite by nature. We don’t want to be limited at all. We want to be free to do anything we want. When it comes to forex trading and we see that it can potentially make money, we want to maximize the money it makes. One of the ways that comes to our mind to make more profit within a short time, is taking a bigger risk. This is a way that comes to the most of the novice traders’ minds, specially because many of them can not open a live account with a reasonable size. However, it is a risky way. I will tell you why. There is a much better way to grow your account faster. Before talking about that way, please see the below examples to see how taking a high risk can “theoretically” grow your account much faster, but can practically wipe out your account.

If you open a $1000 account and make 5% profit per month, your account balance will be $3,225.10 after 2 years, if you don’t withdraw any money and keep on making 5% profit every month for 2 years.

If you keep on trading that way, your account balance will be $18,679.19 after 5 years.

I don’t say that you can consistently make a 5% profit for 5 years. You will have some losing months as well. These numbers are just examples.

If you can neither make more profit, nor you can open a larger account, you have to be happy with the rate that your account is growing, or you have to find a different way to grow your account faster which can be more riskier as well.

If you open a $50,000 account, and make the same 5% profit per month, your account size will be $161,255.00 after two years (of course if you don’t withdraw any money for 2 years). Then you can keep on making 5% profit per month, and withdraw $8,062.75 every month. That is not bad. Indeed, it is a good monthly income. But the problem is, most of you cannot open a $50,000 account at the beginning.

So the only option that comes to your mind, is taking a higher risk. That is when the greed takes the control and you can lose your shirt because of it: You think you open a $1000 account with a 500:1 leverage. You can take a 1 to 2 lots positions with such an account without any problems. Then you calculate and will see that if you open a $1000 account and make 100% profit per month (you double your account every month), you will have $4,096,000.00 after one year or $16,777,216,000.00 after two years (of course if you don’t withdraw any money).

Wow! It is amazing. It is mind blowing, isn’t it?

You can become multi-millionaire within 1 to 2 years, by risking only $1000.

Right?

Wrong!

Having such a big amount of money in the trading account you have with a broker, is possible only on the paper, not in reality. Read these articles:

  1. Trading Strategies Don’t Work If You Don’t Choose the Right Living Strategy
  2. Some Forex Trading Facts and Myths You Must Know

The other thing is that it is impossible to make a 100% profit every month for several months or a few years while your account leverage is 500:1 and you are risking too much. Those who try to double their accounts every month, can get lucky to do it once or twice, but then they will wipe out their accounts the next month. To double your account within a short time, you have to take too much risk that will result in big losses finally. If it was that easy, now we had so many millionaires in the world who would do nothing but trading Forex from the comfort of their homes.

The problem is 99.99% of the traders decide to turn a small amount of capital to a huge wealth, while they have not properly learned to trade yet, and they have not passed all of the learning stages. They open an account and try to double it every month after a few weeks/months of learning and practicing. Therefore, they lose their money and blow up their accounts.

Many of these traders top up their accounts a few times, but the same thing happens over and over again. Why? Because they don’t know how to trade. They want to double their accounts every month through Forex trading, but they don’t know how to trade Forex properly. So… A sweat dream changes to a nightmare, and someone who wanted to become a multi millionaire within 1 to 2 years, gives up on Forex trading after losing several thousands of dollars.

You should complete the learning stages first, open a live account, take a reasonable risk in each trade, manage your risk, position and profit, and grow your account slowly and steadily.

1. We have already talked about completing the learning stages a lot. You can follow the below posts carefully and you will pass the learning stages easily and without any headache: Become A Profitable Forex Trader In 5 Easy Steps

2. Now, I assume that you have passed all the stages and you have repeated your success with your live account at least for 3 months consecutively. Above all, I assume that now you are patient and disciplined enough to wait for the strong and perfect trade setups. So your success rate is really high. I mean you pick the trade setups that either hit the targets, or at least give you the chance to move your stop loss to breakeven. So you are now ready to grow your account.

Start with a small account at the beginning. Don’t think that if you open a big account, you will shorten your way. Risking a larger amount of money creates harmful emotions that don’t let you trade properly. Your greed pushes you to open a larger account, and then your fear makes you blow up the account.

3. You should trade patiently until you double this account. I don’t know how long does it take you to do it, but be patient until you double your account. Then withdraw the initial capital and leave the profit in your account. You are now trading with your profit, and you are not risking your capital money.

These are the articles you will definitely need to read:

  1. Double or Even Triple Your Forex Trading Account Risking 2-5% Only
  2. Forex Calculators
  3. Risk/Reward Ratio in Forex
  4. Money Management in Forex

How to Trade Forex During the News Time

Every month while the FOMC news release, we see some sudden movements.

These movement are usually big and sometimes over 100 pips.

The question is can we trade such movements? In other word, can we trade the FOMC news?

I’d like to tell you how to trade forex using the news like FOMC, and also any other news that makes the market move

However, before that let me tell you that professional traders don’t think about trading these kinds of news.

Some swing traders use the long-term economic news to trade.

However, in most cases, the news like FOMC, create nothing but noise.

If you don’t believe what I say, just take a look at the daily candlestick when there is a news release.

You will see that there is no significant change on it and the daily chart is moving on the way that it moved.

So the movements that the news creates, are usually noise, not meaningful and trade-able movements.

Usually a few hours after the news, the market goes back to the direction it was following.

I don’t trade news personally because there is no reason to do that.

Our Regular Trading Style

We are making decent profit through our regular trading style:

  1. Monthly Time Frame Is the King
  2. A Short Term Investment Strategy That Makes You a Millionaire

Why should we want to trade the news as a day trader then?

I always try to control my greed and make it limited.

The reason is that greed is the most important cause of the traders’ failures.

We can make money through my own investment style in the currency market.

Therefore, we don’t have to think about making some pips within a few minutes after a news release.

News release time is a risky time to trade.

Market movements are not predictable.

On the other hand, in many cases, the brokers are unable to (or don’t want to) execute the limit and stop loss orders during the news release time, and this can be a disaster.

You may have already seen many other articles about news trading.

They usually encourage you to trade forex during the news release time.

However, please note that most of the screenshots you see on those articles are from the best possible conditions and movements that a news release might have created.

Such movement cannot form anytime that there is a news release.

However, it doesn’t mean that we should not even know how to trade the news.

Just in case someone asks about it, we should be able to help the questioner to make/lose some money during the news time.

News Trading for the Forex Day Traders

So here is the news trading strategy based on the day trading style.

that I don’t recommend at all, because it works only on the paper, not in reality:

When there is an important news (like FOMC) on the way, as we don’t know what direction the forex market will choose, we should place pending orders.

About 20 minutes before the news release, we should find the last high and low on 5min chart.

Usually the forex market becomes so slow a few hours before the news release.

It moves in a narrow range.

This range has a high and a low. On the below chart, which is the GBP/USD 5min chart,  the last high is 1.6560 and the last low is 1.6505.

You should place a buy pending order 10 to 20 pips above the last high (line #2), and a sell pending order 10 to 20 pips below the last low (line #4).

Your buy order’s stop loss will be few pips below the last low and your sell order’s stop loss will be few pips above the last high.

The other thing that your orders should have, is a trailing stop loss.

You should have a 20 pips trailing stop loss.

So when your position is 20 pips in profit, it moves the stop loss to breakeven.

Then, for each pip that your position moves to the favorite direction, your stop loss will be moved one pip further.

Stop loss will keep a distance of 20 pips with the market price until the market changes the direction and triggers the stop loss.

The last thing is that as soon as one of your pending orders is triggered, you should cancel the other one.

Some platforms support the OCO orders.

OCO stand for One Cancel Other.

It means when one of the pending orders is triggered, the other one will be cancelled automatically.

GBP/USD 4min Chart after the FOMC News Release

This is how you could trade today’s FOMC and make about 40 to 50 pips.

The Other Side of News Trading

But news trading is not always profitable.

Sometimes market goes up and triggers your buy order.

But then it goes down and hits the stop loss before your trailing stop moves the stop loss to breakeven.

We use a 10 to 20 pips filter above the high and below the low to avoid this but sometimes it happens.

Also sometimes brokers’ servers will not be able to move the stop loss orders.

They can’t even execute them because of the sever overload they have during the news time.

The other thing is that, if you learn to analyze the charts properly and trade the long time frames like daily, weekly and monthly, then you automatically trade the strong news and fundamentals too.

The reason is that, all the strong signals that form on the charts, whether they are according to the candlesticks patterns, or support/resistance breakout, are because of the news and fundamentals, and also the big transactions that central banks perform.

Some of them are accessible to the public, but some of them are not.

In spite of this, you see their impacts on the price charts.

Therefore, if you learn to follow the charts signals and setups, it would be enough for you.

I have to emphasize once again that something that the Forex day traders claim about news trading (I already explained it above), is not applicable even on the demo accounts.

You can’t make money using such methods and through the shorter time frames.

The Right Way to Trade the News

They say it is the news that moves the price.

This is true on one hand, but it is false on the other hand.

It is true because the news reflects the strong economic factors that impact the markets, including the Forex market.

But it is false on the other hand because it is not just the news that makes the price move.

When it comes to news trading, then there is only one important rule that you have to follow:

Only the news that can make the price move in long-term, is the reliable news to trade.

The news like FOMC that makes the markets noisy for few minutes, can’t be trusted for trading and making profit.

Therefore, if we are supposed to trust the news that impacts the markets in “long-term”, then we have to follow the longer time-frames like daily, weekly and monthly.

It means, we shouldn’t care about the news release time.

It doesn’t matter whether we are at the computer when the news is released or not.

For example, when the central bank of a country increases the interest rate, it causes the value of the currency of that country to go higher.

It can keep on going up even for several years, as long as the central bank doesn’t decrease the interest rate.

This is a how a strong and important news like the interest rate, works.

It helps us take proper positions and make money.

Forget about the other news and the other ways of trading the news.

Avoid the Forex Market Crooks

If you are new to Forex trading, you are a good prey for the scams to rip you off.

They can sell their useless trading strategies, systems, and mentor-ship courses to you.

But they have never made any profit even with a demo account.

So be careful.

If you’ve heard from one of these crooks that you can make money by following the news and using the shorter time-frames like 5 or 15 minutes, then you will lose a lot of money and will waste a lot of time if you follow him.

You can’t make any money like that at all.

Make sure to follow the right people and the right trading strategy: Trading Strategies Don’t Work If You Don’t Choose the Right Living Strategy

4 Lies About News Trading You Probably Believe

News Trading MythYou always hear or read that there are two kinds of traders:

1) Fundamental traders who trade based on the economic news and statistics;

2) Technical traders who trade based on the technical analysis.

This is somehow offered to you as an option when you want to start learning to trade forex. You can choose whether you want to be a news trader or a technical trader.

Some people prefer to become a news trader because they believe it is easier, and probably makes more money. Some others prefer to become a technical analysis trader, because they think they will be able to locate more trading opportunities (trade setups) on the charts, compared to news trading that they have to wait for several days to have an important news to trade.

Many novice traders have wrong mentality about the news and news trading. You can be one of them. So before you start trading the news with your real money, you’d better to think more. Here is the lies that you may hear about news trading:

1. You Can Trade the News as an Intraday Trader and Through the Short Time Frames Like 5min

This can be possible on the demo accounts, but not on the live accounts.

The reason is that usually when there is a strong news that moves the price reasonably, the spread goes up and down a lot during the news release time. At the same time, the price also goes up and down frequently, or chooses a direction and follows it very fast.

If you set pending orders, they either will not be triggered at all, or if triggered, the entry price will be much different from the level you set the pending orders. As far as I have seen, this difference is usually against you, because – for example – when you set a buy pending order and the price starts going up suddenly because of the news release, within a few seconds it passes the level you have set your pending order, and so, the broker will not have enough time to trigger your order. It will be your turn to trigger your order when it is usually too late and the price is much higher than what your pending order was set to. Therefore, either your order will not be triggered at all, or it will be triggered much higher than your pending order level.

You have to add the spread to this price movement too, because usually the spread also goes up dramatically during the news release time and several minutes after that. Specially market maker brokers try to exaggerate and increase the spread a lot more than that it has to be.

All of these bad events are really normal to happen during the news release time, even if your broker is a good ECN/STP broker that doesn’t want to make you lose, and just wants to route your order to the liquidity providers. What if your broker is a market maker broker which is determined to make  you lose? They do their best to make your news trading orders to be ended with loss. They do it with your other orders too, but they can make you lose more during the news release time. News release is a good opportunity for them to wipe out their clients’ accounts. They have a lot of ways and tools to do that.

You win only when you already have the right position before the news release.

2. Some Brokers Offer a Fixed or a Very Low Spread During the News Release Time

This is possible to do only when the broker is a market maker broker, because a market maker broker is able to control everything, even the spread. They can offer even a zero spread for all of the currency pairs during the news release time. They offer a spread just to look normal to their clients who usually don’t know what a market maker and ECN/STP broker is. A market maker broker main income is not through the spread. It is through the traders’ losses.

Real ECN/STP brokers are not able to control the spread at all. They can add to the market’s base spread, but they can not lower it, because they are electronically connected to the interbanks (liquidity providers) and they route your orders to them. So, you are dealing with the interbanks, not the broker, and it is the interbank that determines the base spread that the broker has no control on it. The spread that the interbanks offer goes up dramatically during the news release time, because they receive too many orders within a very short time, and handling these orders causes the spread to go up too much.

Some ECN/STP brokers add a few pips to the base spread, as the “markup”. They make money through the markup spread. Some of them don’t do this and they only charge a commission which is what they are legally allowed to.

So if a broker offers a fixed spread, it is a market maker broker. It is not possible to offer a fixed spread if they connect you to the real forex market. They offer a fixed spread to attract more novice traders. Offering a fixed spread is just an advertising and marketing method to fool those who know nothing about trading and think that they can turn a $200 account into millions.

3. When the News Actual Value Is Greater/Smaller Than the Previous and Forecast Value, Then the Price Takes a Clear Direction and Keeps on Following It

There are some strict and precise rules about the news trading, but they rarely work in reality.

There is something like this on the sites that list the news and economic data release time:

Actual > Forecast = Good for currency;

or

Actual < Forecast = Good for currency;

For example if “Non-Farm Employment Change” actual value is greater than the forecast, we expect that the USD price to go up.

But in reality it goes up sometimes, but sometimes it takes the opposite direction. Sometimes it goes up and down and makes several candlesticks with long shadows. If you set a buy pending order and enter by chance and then it goes down and it does not trigger your stop loss, you can lose a lot. It is too risky to trade based on this rules.

4. Most of the Economic News That Are Listed on the Sites Can Make the Prices Move

This is not true too. I know that different news are categorized into different strength levels like “High Impact”, “Med Impact” and “Low Impact”, and so, the traders expect the “High Impact” news to make the prices move always. However, the truth is that sometimes even the “High Impact” news cannot make a reasonable movement on the price. In fact, there are only a few news that can sometimes make the price move reasonably.

Most of the “High Impact” news that you see on the sites are not important for the forex market at all. The risk is that if you trade based on these news and you enter while you think that the price has moved because of one of these special “High Impact” news, it can go against you and trigger your stop loss, because it was not the news that made the price move. It was just an ordinary movement that can reverse easily.

When a strong news really makes the price move toward a special direction, it will keep on following that direction for a reasonably long time, and it will not reverse so easily. This is something that you can see on the forex market very rarely, maybe even less than once every month.

So, Do We Have to Forget About News Trading?

I am not saying that you have to forget about news trading. However, I am saying that news trading is not what most traders think. You should forget about intraday news trading through short time frames like 5min or 15min. As I explained above, it can be too risky and you will be faced with several serious problems. Maybe it is possible to make profit on the demo accounts through the shorter time frames, but not on the live accounts.

Actually, we are all news traders when we follow the longer time frames like daily, weekly and monthly. But through these time frames we follow the news that are really strong, important and effective on the forex market… strong enough to make the price take a special direction for several days, weeks or even months.

If we trade the news through following the longer time frames, we won’t have to be worried about the news release time. We don’t have to be worried about entering the markets right when the news is released, and be faced with the problems that I already explained.

Those important news that I am talking about, can make strong and visible trade setups on the charts. Sometimes we don’t even know what news it was. Sometimes the news result is not accessible to the public, and only the central banks are aware of it. They take proper actions based on the news and the economic statistics they have. These actions make strong trade setups on the price charts. We locate the trade setups to follow the direction the price has already taken because of the central banks actions.

That is how it works.

In general, the price charts and candlesticks reflect all the sentiments, impacts, decisions, actions and directions formed by the market big participants and players. If we know how to follow them, we won’t have to be worried about anything else. Above all, they show us the most optimum and the best entry time and price that are much safer for taking a position, whereas if we want to enter right when the news get released, we can be trapped.

One day, a friend told me that everybody, including all the news networks, economists and… are saying that US economy, and so the USD price, will keep on go down. So let’s take a short position with USD/CHF and hold it as long as we can. I said I would do it only when I see a strong signal on the chart. It was exactly the time that USD/CHF stopped going down and formed a strong buy signal on the monthly chart. Since that time, we have taken so many short and long positions with USD/CHF.

So, another conclusion is that most of the things “we hear” are not true. What “we see” is true. We should trade based on what we see, not what we hear.

Loading

Which One Do You Prefer?

Thank you for voting
You have already voted on this poll!
Please select an option!

    What Is Forex and How to Make Money with It?

    Currency or Forex trading has received a lot of attentions in the past few years.

    However, let’s see whether it is what people really think, or it is something completely different.

    What Is Forex?

    Forex is the knowledge and art of trading different currencies against each other and making profit through it.

    Each country has its own currency, and the currency of different countries can be bought and sold against each other.

    Forex traders are those who make money through buying and selling different currencies against each other.

    Forex is not a new business, and its history is as old as the history of money.

    However, computer and Internet have enabled people to trade Forex from home and through the personal computers.

    There are two kinds of Forex Traders

    Forex trading is different from the money exchange business.

    A money exchange business also deals with the currencies.

    But it is different from Forex trading and Forex traders are not money exchangers.

    Forex traders are those who buy and sell currencies against each other to make profit.

    They don’t to offer a money exchange service to people.

    1) Retail Forex Traders:

    Retail Forex traders are the ones who trade Forex from home and through the retail brokers.

    They are the ones who lose a lot of money and give up on Forex trading sooner than later.

    Most people think that it is possible to have a fixed monthly income through Forex trading, and so they start doing it from home.

    However, Forex trading looks easy at the beginning and when you look at the price charts.

    Indeed, there is no retail Forex trader who can make money consistently from trading the currencies from home and through the retail brokers.

    It is becoming harder and harder to make money through Forex trading and as a retail Forex trader.

    Brokers get greedier all the time and try to cheat their clients more.

    Indeed, I have never seen a consistently profitable retail FX trader who trade currencies through the retail brokers.

    You can learn more here: Some Forex Trading Facts and Myths You Must Know

    By the way, I forgot to tell you who Forex brokers are.

    They are the companies that connect you to the currency market to enable you to buy and sell currencies through your personal computer and the Internet.

    2) Professional Forex Traders

    Professional Forex traders are the ones who either trade for the banks or the hedge funds and financial companies, or if they trade for their own, they do it through the bank accounts and with a reasonably big capital, not through the retail Forex brokers and with a small trading account.

    They don’t trade every day, because they only take the big trading opportunities to increase their wealth and capital.

    Indeed, currency trading is not a source of income for them.

    It is an investment opportunity to increase their wealth.

    Learn more about these Forex traders:

    1. Monthly Time Frame Is the King
    2. Forex Trading through a Bank Account

    So, the first thing you have to keep in mind is that Forex is not what the brokers and Forex signal websites advertise over the Internet.

    Therefore, make sure not to waste your time and money on it, with the hope of creating a source of income that makes money for you every month, consistently.

    It doesn’t work like that at all.

    Forex trading can’t be as your main source of income and full-time job. Period.

    If you don’t believe this, you will be back to this article and this website after a while of wasting time and money.

    So make sure to bookmark this page to come back here when you remember me and this article after losing some money and wasting a lot of time.

    I hope you don’t rick too much.

    How Can You Make Money with Forex?

    Does what I explained above mean that you can never make any money through Forex and currency trading?

    No, I didn’t say that.

    Indeed, currency and stock markets are great investment opportunities.

    But please note that they are investment opportunities, not sources of income.

    It means, you can invest a portion of your capital in currency market to increase your capital, as you do the same with the real estate and stock markets.

    To do that, first you have to have a reasonable amount of capital that you can invest a portion of it in the currency market to increase your wealth and capital.

    This is how Forex trading and currency market can benefit you.

    Day Trading with Shorter Time-Frames

    If someone tells you that he makes money every day while sitting at the computer and trading the currencies against each other through the shorter time-frames, then you should make sure to ignore him, because he is lying.

    Now, As I mentioned above, Forex is a good investment opportunity that enables you to invest some money and increase your wealth and capital.

    What if you don’t have any money to do this now?

    If you don’t have any money and capital to invest in the Forex market, then you have to create a reliable and strong source of income to make money consistently.

    Forex can’t be this source of income at all.

    I explained why.

    Therefore, if you are unemployed and you have no job and income, or you have a job, but your income is not enough and you want to make more money, and you think that Forex trading is the solution, you are wrong.

    I explained about the reasons above.

    The First Step

    What you have to do first, is creating a reliable and strong source of income.

    When you made enough money, you can invest a portion of it in the currency, stock and real estate markets to make more money and increase your capital.

    If you aren’t ready to do that now, then stay away from the Forex market, because you can’t make any money through it with a small $500, $1000 or even $10,000 account with a retail Forex broker.

    This is the most important piece of advice we always give to our website’s followers.

    Now, if you are ready to start from the beginning and establish a reliable and strong source of income, I suggest you to read the below articles to understand what I mean by a reliable and strong source of income:

    1. The Easiest Way to Get Rich Fast
    2. How a Reliable and Strong Source of Income and Proper Investments Make You Super Rich
    3. Trading Strategies Don’t Work If You Don’t Choose the Right Living Strategy

    The below article explains how our investments strategy works.

    If followed properly, it can make a lot of profit in long-term in the Forex market.

    This is the strategy you have to follow when you have already earned enough money through the reliable and strong source of income I talked about it above: A Short Term Investment Strategy That Makes You a Millionaire

    Don’t Trust the Fund and Account Managers

    There are some people who claim to be skillful and profitable Forex traders.

    They offer you to give them some money to trade in the currency market and return some profit or interest to you every month.

    These are the ones you should avoid as well.

    Many of them are scams.

    The ones who are not scams, don’t know what Forex trading is in long-term.

    They have been lucky to make some profit for a short while.

    Therefore, now they think they are professional Forex traders who can double and triple the accounts every month.

    What will happen is that they will wipe out the whole account and all the money will be blown up.

    So, if you are looking for making money through Forex, make sure not to give your hard-earned money to anybody.

    Also you don’t risk your money to trade Forex on your own.

    For Newbie Forex Traders

    For a newbie, Forex and currency market is nothing but a money sucker.

    It only wastes your time and money. That is it.

    Now, if you are really after making money and getting rich, you can follow a clear and straight-forward wealth building strategy: A Wealth Building Strategy to Create Wealth from Nothing

    Forex market can make you richer only when you are already rich.

    Now you know what Forex is and how professional Forex traders make money

    Therefore, you won’t make any mistakes and you won’t lose any money in this market.

    You are lucky if you have found this article before risking any money in Forex trading.

    I know some people who haven’t been as lucky as you.

    They lost their shirts before they learn that Forex trading was not what they thought.

    Make sure you follow us on this site, if you are serious about getting rich without losing any money and wasting any time.

    In this below 23 minutes video, we have talked about the history of trading at the beginning. Then we have explained about the currency trading basics. This video covers the below topics:

    1. The currency market and the world of exchange
    2. The modern exchange
    3. The modern stock exchange
    4. The history of Stock Exchanges
    5. What is liquidity?
    6. Rating of quality
    7. The agreed minimum quantity which can be traded which is “LOT” in currency trading.
    8. Different kinds of exchange: Commodity, Stock, Currency
    9. International transactions: US Dollar, Euro, British Pound, Japanese Yen, Swiss Franc
    10. What is “Foreign Exchange”?
    11. Who works on the currency markets? Central banks of countries, Financial companies and brokerage houses, Private individuals like forex traders
    12. The markets working days and times
    13. Currency pairs
    14. Point or Pip
    15. Margin and Leverage
    16. Trading platforms
    17. Bid and Ask prices
    18. Spread
    19. Long and Short Positions
    20. Stop loss and target (take profit) orders

    Here is the video:

    How Do You Make Money through Forex Trading?

    You buy or sell a currency against another one when you come to this conclusion that their value is going to change against each other and consequently your trade will make profit for you.

    For example when you buy EUR against USD, it is because you think that the EUR’s value is going to go up against USD after a while.

    Therefore, (1) you pay USD to buy EUR and then (2) you hold the EUR you have bought for a while (3) to wait for the EUR’s value to go up against USD. Then (4) you sell the EUR you have bought to collect the profit you have made.

    For example, you buy €100,000 against USD when the EUR to USD rate is 1.0590. Therefore, you have to pay $105,900 to buy €100,000:

    100,000 x 1.0590 = 105,900

    You expect the EUR’s value to go up against USD and you are fortunate enough to see that it really goes up after a while and let’s say it reaches 1.0690. Therefore, you decide to sell the EUR you have bought to collect your profit. As the rate is now 1.0690, you will receive $106,900 when you sell the €100,000 you had bought:

    100,000 x 1.0690 = 106,900

    Therefore, you have made a $1,000 profit:

    106,900 – 105,900 = 1,000

    It can be the other way round if EUR’s value goes down instead of going up. For example, if it goes down and reaches 1.0490, and then you sell the EUR you have bought, you will lose $1,000 because you have paid $105,900 to buy €100,000 while the EUR to USD rate was 1.0590. Now it is depreciated to 1.0490, and so, you will receive $104,900 if you sell your €100,000:

    100,000 x 1.0490 = 104,900

    Therefore, you lose $1,000:

    105,900 – 104,900 = 1,000

    This is how you can make or lose money through Forex trading.

    What Is Forex Exactly?

    How Can You Buy and Sell Currencies Against Each Other?

    1) There are some brokers who facilitate the trades for you by providing a trading platform software that can be installed on your computer, and connecting the software to currency market. They charge you some fees for each of the trades you do.

    To make the work easier for, brokers pair the currencies against each other and create currency pairs.

    There are a lot of things you have to learn about the brokers before you open an account with them. Many of them are not reliable and can make you lose money. So be careful.

    2) You can trade the currencies against each other through a bank account as well.

    Now that I have almost explained what Forex is, I’d like to explain what Forex is not.

    What Forex Is Not?

    Some people have some wrong impressions about Forex trading.

    Forex Is Not a Get-Rich-Quick Scheme

    If you become a professional Forex trader who can make profit consistently, you can make a lot of money from Forex trading. But you can do that only when you become a consistently profitable trader who knows a lot of things about trading and knows how to manage and limit his risks.

    It takes time and effort to reach this level. You cannot start making money through Forex trading overnight and just by following a friend who is also a beginner and probably has been able to make some successful trades on a demo or a small live account.

    A Forex trader is called a consistently profitable Forex trader if he can make money consistently for several consecutive months and years. He should be able to repeat his success, not that he doubles his account through one successful trade and then keep losing money.

    No doubt that even a professional trader loses money sometimes, but the difference is (1) his losses are much smaller than his gains, and (2) he can easily recover his losses. Additionally, (3) the number of his successful trades is higher than the losing ones, and he can repeat this pattern over and over for several months and years.

    Keep in mind that trading can be risky and there are some people who have lost their shirt in trading. Most or all of the professional Forex and stock traders, have at least one good source of income and use the trading to increase their wealth, not as their main source of income. Indeed, they force their money to make more money for them through the ways like stock or currency trading or other kinds of investments. Therefore, don’t look at Forex trading as a main source of income. You have to have a good backup.

    Hope I have been able to explain in brief what Forex is. Keep following us on this website if you like to become a professional trader who also has some good and stable sources of income and uses the trading as a way to increase his wealth.

    How Does Forex Work?

    Most of those who ask “How Does Forex Work?”, don’t care about the technical aspect of Forex trading. They want to know whether it really makes money or not.

    People start learning how to trade Forex, because they want to make money. Many of them want to make a living through Forex trading and look for having a source of income through Forex trading. They want to become full time Forex traders who trade Forex to make a living.

    Some others look at Forex trading as an investment opportunity to increase their wealth.

    Now the question is whether Forex really works for these people or not.

    Before I answer this question, I’d like to explain a little about the technical aspect or Forex trading and how Forex works behind the scene.

    How Does Forex Work Technically?

    Forex or Foreign Currency Exchange is the business of exchanging the currencies against each other for the purpose of making profit. This is what Forex traders do. They buy and sell the currencies against each other to make profit when one currency’s value goes up or down against the other one.

    Some others, offer a currency exchanging service to those who need to convert a currency to another. For example, tourists have to buy the destination country’s currency. The money exchange agency charges some fees to exchange the currencies to each other for them. You can do this through the banks too, but the private money exchange agencies are used to offer better prices: How to Run and Manage a Money Exchange Business that Makes Money

    Forex trading is not something new. Its history is as old as the history of money. But the way that retail Forex traders trade currencies now, is somehow new. It is done electronically and through the Internet. It is almost 100% automatic and it needs no human touch to complete the exchanging process.

    To trade currencies against each other as a retail Forex trader, you have to open an account with a Forex broker. More professional traders, trade through the bank accounts that needs more capital. They buy and sell currencies against each other through a trading platform software, or through their online banking account.

    Here, I’d like to focus on this question that how does Forex work to make money for Forex traders. And, how Forex traders can make money with it and whether it is really possible to make money with Forex or not.

    How Does Forex Work to Make Money for Retail Traders?

    How Does Forex Work to Make Money for Retail Traders?

    Theoretically, retail Forex traders try to predict whether a currency’s value will go up or down against the other currencies. If they conclude that the value of currency A is going to go up against currency B, then they will buy currency A against currency B. It means they pay currency B to receive currency A.

    In case they are correct and the value of currency A really and reasonably goes up against currency B after a while, they will convert currency A to currency B. The price difference makes some profit for them. This is how Forex trading makes money for Forex traders theoretically.

    Now the question is whether this process results in profit in reality and actually or not. Can the Forex traders make money consistently? Is Forex trading a good and stable source of income? Does it really make money as a full time job?

    There is no doubt that the currency market is a big opportunity to make money. There are so many who make a lot of money through this market.

    However, to make money through currency trading, a retail trader has to have two things:

    1. He has to master a trading strategy.
    2. He has to have money to trade with and make more money (profit).

    Mastering a Trading Strategy

    There is no special and clear way to master a trading strategy. While it is hard and complicated for most people, some others can do it after a while of learning and practicing. I personally believe that mastering a trading strategy and then making money as a professional trader has four stages:

    1. You have to choose a trading strategy and learn the related basics and technical parts.
    2. You have to demo trade the trading strategy until you become a consistently profitable demo trader who makes profit on the demo account consistently and consecutively. To make sure that you have reached this level, you have to repeat your success for 6 consecutive months at least.
    3. After becoming a consistently profitable demo trader, you have to try the same trading strategy on a small live account to make sure that you can repeat your success with real money too. To make sure that you have gained such an ability, you have to repeat your success at least for 6 consecutive months here too.
    4. You can trade with a bigger account to make a reasonable amount of profit. If you can afford, you can even trade through a bank account that needs more capital, because banks usually don’t offer any leverage.

    Nobody knows how long it takes to pass the first 3 stages and reach the stage 4. It is different from person to person. However, something which is clear is that nobody can pass these stages without spending enough time and energy. You have to spend time to become a consistently profitable demo and then live trader. You have to practice with peace of mind.

    Financial Freedom

    Now, it is time to refer to the beginning of this article that says “People start learning how to trade Forex, because they want to make money…”

    Whether you like to make a living through Forex trading or you want to look at it as an investment opportunity to increase your wealth, you have to be financially free while you are trying the master your trading strategy and pass the 4 stages I outlined above.

    Financial freedom creates the peace of mind you need to spend enough time on learning and practicing. When you are not financially free and you have to make money as soon as possible, you will not have the peace of mind you need to focus on learning and practicing, and you push yourself to start making money as soon as possible.

    Therefore, you will open a live account even before you become a consistently profitable demo trader. Then you will push yourself to make money with your live account. But, as you haven’t completed the learning stages yet, you will make a lot of mistakes, and so, you will lose money.

    Most traders wipe out their live accounts at least a few times. Unfortunately, many of them start trading with the money they cannot afford to lose. Finally, they give up after wasting a lot of time and money.

    You can’t make money through trading, when you HAVE TO make money. This is one of the big differences that trading has with the other money making opportunities: Trading Strategies Don’t Work If You Don’t Choose the Right Living Strategy

    How Does Forex Work Practically?

    How Does Forex Work Practically?

    Therefore, we can say that making money through Forex trading has two main stages:

    1. Mastering a trading strategy
    2. Having enough money to trade and invest

    According to what I explained above, both of these stages are dependent on “money”. You have to have money to master your trading strategy. Then, you have to have enough money to open a reasonable live account. You can start with a small account, but it takes you a lot of time to turn it into a reasonably big and professional account.

    Therefore, having a good and strong source of income is a must. This is how Forex works. It is not only with Forex. It is the same with any trading and investment opportunity, be it currencies, stocks, real estate and…

    Forex Trading as a Full Time Job to Make a Living With

    Forex or stock trading can’t be known as full time jobs that you can make a living with. They are good and strong investment and money making opportunities, but you shouldn’t look at them as full time jobs. The first and the most important reason is that making money through trading is not just dependent on you, your abilities and activities as the trader. It depends on the markets too.

    Sometimes the markets become too slow for several months, and so, you can’t locate a trade setup to make money. Sometimes the markets become too volatile and cause some big losses. You need to have a good and strong source of income and a reliable backup to support your trading venture, otherwise you will be in trouble.

    While Forex trading is a great opportunity to make a fortune, it is not a business that you can make a living with in long term. It is the same with stock trading and real estate investment. They can help you increase your wealth and grow your capital dramatically. But it is too hard to rely on them as the main sources of income under the normal conditions.

    Concluding

    It is great that you are after making money through Forex trading. But you should consider the facts I explained above to avoid wasting any time and money. As I explained above, having a good and strong source of income is a must for those who want to learn to make money through Forex trading, and also for those who have already mastered their trading strategies.

    That is why we not only teach our followers the trading techniques, but also help them to establish a good and strong source of income. This is how Forex works.