How to Profit with Forex Trading

Forex profit is an idea that has been sold around the internet to people looking for easy answers to their money problems. It's elusive to most forex traders though because everyone is looking for profit at high speed. Sometimes forex profit can come quickly, but more often than not, it takes planning and patience.

It's as simple as that.

Planning
Trading takes planning, that is just common sense. It is common sense that is usually thrown out the window in the search for fast forex profits. You have to plan your trades ahead of time, and then execute them according to your plan. The more you change your plan, the more you end up in trouble, and the less likely that elusive forex profit will end up in your pocket.

Patience
Patience is the number one key to achieving forex profit. Patience combined with careful risk management will allow you to ride through poor entries and other minor forex mistakes. Sometimes profit will come fast and other times it will take some time. If you open each trade prepared to wait for the profit to come, you will be more successful 

While it's true that in forex you can trade using whatever chart time frame you want to use, it's better to use a longer time frame as you point of reference. For forex, the daily and the weekly charts are really stable for beginners.

Look at the daily chart and plan your trades in the direction of the daily trend, set a stopthat would be triggered if the price changed direction enough for you to feel convinced that the trend was over. There is no way to predict this for sure, it's really just a safety precaution.

There are three ways to play this trade from here.

1. You can set a take profit order for an easy target on the daily chart of 100 pips
2. You can look at the daily chart over a wide range of days and look for the next support or resistance area to set a take profit
3. You can set your stop to be a trailing stop that will lock on profits as the trade progresses

No matter which method you choose, this type of trading will take some patience. Forex traders, particularly beginners are prone to getting nervous if a trade doesn't go their way immediately, or if the trade gets into a little profit they get itchy to pull the plug and walk away with a small profit that could have been a large profit.

If you have set your stops and you are trading with prudent risk managment, you can just allow the trade to develop until stop or profit.

Rinse and repeat and you have yourself a forumla for making forex profit. It's all a game of averages. You are going to lose some trades and you are going to win some trades. Using the laws of probability will tip the scales in your favor as long as you follow the rules and think carefully.