How To Make Quick And Safe Bucks Online With Forex

95% of new investors fail the forex game. That’s a fact. The average bloke jumps into the market with a $10,000 investment hoping to hit a goldmine. He purchases scores of forex indicators off ebay to get an edge. Then he tries autotrading robots amounting to a thousand dollars. Then reality sets in. Losses accumulate until the account is wiped out.  All the fancy tools and indicators amounted to nothing.

I’ve seen it happen too often. I’ve had  friends bled of a hundred grand in a month. I personally lost $20,000 the first time I tried 5 years ago. It’s not the game for the faint hearted.

Worried? Should you keep away from this money making industry then? It depends.

One reason most fail at this endeavor is that decisions are made on an emotional level. The amateur trader spots a trend, bets on it, makes a profit…  then he enlarges each succeeding bet thinking he’s on a roll. Big mistake. The larger the bet, the more monstrous the potential for loss.  The next position he enters reverses and tanks up everything he’s bet. A whole day of winning obliterated in one move.

So what does the trader do? He illogically bets larger on succeeding trades, hoping to make up for the whopper losses in one move. It’s a spiral from there. Logic is thrown out the window. Emotion dominates succeeding moves until the account registers 0.00 US Dollars.

The trader contemplates a skydive from the 30th floor.

Making money online with forex houses can be very rewarding. But it can be seriously deadly as well. For those wanting quick bucks from the forex market, I offer the following tips:

1) Check your Emotion at the door. Make trades when you’re neutral. Avoid trading when your pride is stinging- you’ll end up dashing into illogical maneuvers to redeem yourself.

2) Issue online trades shortly after the release of fundamental news data, not before. When information like CPI, GDP or Unemployment is released, the market reacts. Violently. If you made a trade prior to the release, the trend can reverse abruptly to you expectations and annihilate your account.

3) Resist the urge to overspend on all those cutesy $100 trend prediction indicators so popular on ebay. Scammers wrote many of those just to make a buck from losing traders. If you must purchase one, the only one I recommend is the fx4caster written by trading genuis Tom Yeomans. It’s the one tool that worked consistently well- and which most forex houses would love to ban.  I’ve personally made megabucks with it- especially when paired with standard market tools like the MACD, 20 day moving average, stochastics and Aroon indicators.

4) Join forex support groups. Fxfisherman.com and Forexfactory.com bustle with thousands of traders on a mission: to beat the market and the forex house.  What these people discuss daily is more valuable than any thousand dollar ebook you can buy on the market. They have have real experience and are raring to share.

5) Finally, bet safe. Making money online with forex is easy when you don’t risk all your eggs in move large move. Avoid exposing more than 10% of your equity on a currency pair. Diversification is key. You’ll appreciate this more if you’ve been exposed to the world of online affiliate marketing: the more websites you have attacking numerous markets, the more money you’ll make. But when you focus on just one niche… and that niche dries up… you’ve pretty much kicked the bucket.

Happy money making!

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