One question that comes up a lot is: Is Forex Profitable?
Many times this question comes from retail traders that are not finding any success with their trading approach. When I say “trading approach”, I don’t just mean their trading strategy.
Your trading approach is much more than a trading strategy and we will cover that later.
The short answer is yes, Forex trading is profitable.
The slightly longer answer is yes, trading in the Forex market is profitable but chances are you won’t make any money.
How do I know trading Forex can be profitable? Because I’ve been swing trading Forex since 2008 and make money. In fact, you can take a look at my free Forex chart setups that I post every week using technical analysis and then update any trades at the end of the week.
Everything in those chart is for one reason: To teach you how to use a simple approach to trading Forex to make profits.
It’s one thing to make money trading and an different thing to keep the profits.
Your Biggest Job As A Forex Trader
I’ve mentioned it many times in my trading posts but the number one job you have as a trader, is a risk manager. If you do not understand risk…if you do not manage your trades in the proper way, you will lose.
If you are risking too much per trade to withstand a string of losing trades, you will be out of trading faster than you imagined.
If you continue to move your stops around to avoid taking a loss, you will eventually lose your account. Your broker will be happy because you are probably a retail trader and your broker banks your loss, but you won’t be.
Your second job as a trader is simple: Enter trading orders.
If you are trading, you’ve done your homework and are trading a strategy that has a verifiable edge in the market. You have made a trading plan complete with which setups to take, how you will exit, where you will take your loss.
You’ve outlined which currencies you will trade and the style of trading you will be doing. Day trading is popular but swing trading currencies is how I trade the retail market. If I day trade, it is not often, is not Forex, and is done in the Futures markets with the occasional options trading play.
Your job as a trader is to execute the trading plan when your setups take place. You enter your trading orders, manage your trades, and take your profit and loss the way it is set out in your trading plan.
Without a trading plan, you are doomed to fail.