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sustainable profits trading forex

Is it possible to make sustainable profits trading forex?

Can I make sustainable profits trading forex? Anyone who’s been trading forex for longer than a couple of weeks has asked this question. I certainly have in the beginning of my forex career!

 

How about you?

 

Everyone does.

I enjoy teaching others how to trade forex and how to become profitable in forex. That is the exact reason why I started Smart Forex Learning. Another way that I often try to help people, is on the social Q&A site Quora. If the questions I’m asked there are any indication, people are quite doubtful about forex:

 

I get this question a lot.

 

It usually stems multiple things. People expect quick riches, but without actually putting in the hours. Research has shown that 80% of the day traders quit within the first 2 years. Usually, at a certain point they’ve lost too much money and either quit or (even worse) go shopping for a magical forex trading system.  Then they lose some more. People feel lost.

 

It doesn’t have to be this way.

How to become profitable in forex

 

And I’m not even going to try and sell you something. The advice I give to people is the same advice I took to heart when I was struggling to make a profit. It allowed me to get structured, treat forex as a business. It allowed me to become profitable in a sector where most people are losing money.

 

This is what I tell people:

 

Can I make sustainable profits trading forex?

 

First of all, good question! And thanks for taking an interest in forex, you won’t regret it.

 

I’m going to tell the unpopular truth first: it is not easy to make sustainable profits trading forex. 60% of forex traders lose money, and this is a very conservative estimate. As they say:

 

The best way to end up with $1000 in forex is to start with $2000.

 

It won’t happen overnight, but it’s definitely possible though.

 forex consistent profit

 

Here’s how I would approach it:

 

I know it sounds underwhelming, but try to focus first on the process instead of the profits. You should study the basics first (the BabyPips school is excellent for this). Then, get a demo account from a decent broker (I can recommend Pepperstone, but any reputable broker such as AxiTrader or Oanda is equally good) and try to get a feel of how forex trading works.

 

 

It’s important to find a trading style that aligns with how much time you have. Depending on the available time each day or week, scalping, day trading, swing trading or even position trading might be an option. Be sure to find a trading style that matches your personality. Scalpers love excitement, position traders need to be ultra-patient. Your trading style might end up making the difference between losses and profits.

 

Next up, read a couple of good books on trading. Learn the basics of candlestick charting, price patterns, technical and fundamental analysis, trading emotions, etc. I’ve listed up some great forex books, most of them classics in their own regard. To keep an eye on the news, a good economic calendar is also useful.

 

You should also start creating your own trading plan with a trading journal. The difference between a successful trader and a losing one is that losing traders lack structure. A trading plan and journal provides that structure. A trading journal should not only be a logbook of the trades you take, but also how you feel about taking that trade, what you perceive as risks and even ongoing emotions as the open trade unfolds. It deals with trading emotions in a systematic way that makes it easier to improve on them. It will also help with the fear of missing out (or FOMO).

 

Conclusion

astronaut

 

I often make the following analogy: trade like an astronaut. Sweat the small stuff, think about what can go wrong and work at the building blocks to make you a great trader. It takes time and discipline, but I can tell you: it’s worth it.

 

Ultimately, this will lead you to make the right decisions, achieve consistency and eventually make sustainable profits trading forex. Don’t hesitate to contact me if you have additional questions, I’d be glad to help.

 

Good luck,

Felix

 

What are your best tips to become profitable forex trader? Leave a note in the comments!

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Felix

I'm a full-time, independent forex trader. I've been trading for over 10 years and specialise in reversal trading, trading psychology, algorithmic trading and coaching others. When I'm not trading, I'll either be travelling the world or rock climbing (likely both). Read my story here.

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