Forex market has been an important income source for many people trading online and making a living, paying their bills and even with a better way of living. Thus, you can easily understand why more and more people are considering quitting their job to become a full time day trader and live the life they always dreamed of.
While I may discourage you in your project of leaving your boss for your own trading business, but I will do it for good. Well, you must know that about 91% of traders lost their capital at Forex. It could be actually scary but the winners are making a lot of money as well because this is the only financial market where about 4 trillions of dollars are traded every day. In fact, I'm not going to discourage you in your plan. I will even encourage you but I will stress on the importance to plan wisely.
You should never make you the illusions that you will never have losing trades. If someone tried to sell you a 100% working automated trading robot or a method that works at anytime I can tell you that you got screwed. The reality is the winners are those traders who make more winning trade than what they lose. For example, you make ten times $10 and you lose $45 one time for a trading day, you can figure out that you will end up with a total profit worth of $100 with a $45, you're still in profit.
So, what is the best way to go and to make a consistent profit out of the market? You firstly need to learn forex trading (basic principles, indicators, price action, candlesticks,...) and practice what you've learned with a free demo account.
Doing this, you will soon understand that the main enemy of a trader is himself. I mean, greedy and all these feelings you experience when trading and which force down your throat to tell buy when your trading strategy is leading you in a downtrend.
First thing, I will suggest you a proven trading strategy: The Dow Theory. You can Google it a bit to learn more but to make things simpler and to save your time, the principle is just about buying when prices goes up above the last higher high and selling when prices goes down below the last lower low. The last rule in this strategy is to be sure the marketing is trending up when buying and the market is going down when selling and you get the answer when prices keep break higher high levels (uptrend) or when prices keeping breaking lower low levels (downtrend).
You can give it a try manually on a free trading platform like Metatrader.
The next thing to do is to code your bot. You will need to learn more about MQL4 language which is a simple programming language and with the help of the metatrader programming forum you will soon have your own expert advisor ready to test. You can also look for some well written robot source codes to improve your bot.
When ready, you will need to test your trading robot. You have a strategy tester available for free in Metatrader, it's easy to use and will allow you to test your trading software on history data and be confident your bot will work fine in real trading conditions. You can also outsource the development you don't know anything about programming. Before going live, test it again live on a demo account and you can start making about $300 each after week without having to quit your boss.
Stephane Tony is a professional forex trader giving free trading robots and free forex trading strategies. |
