Traders with a high level of qualification in the field of technical analysis can afford to make several transactions every day, earning up to 300 points per day. At first it seems that the only way you need to, but this form of work on Forex can be compared with the acrobatic performances of figure skaters and gymnasts. For professional athletes such activity - the daily routine, but for a person unprepared may end fatally. In trading, a situation like that. The novice trader such extreme to anything.
It is much safer to enter the market only at the points most predictable market movements: the point of intersection of the long-term and medium-term channel, strong support or resistance levels, and so on. Such situations are formed from several times a week to several times a month, however, it is quite enough to get a small but steady income. There is no need to constantly be at the computer, tracking the slightest fluctuations in prices.
Can I make off living trading Forex?
This question can be rephrased as: Is there a job with a good salary? Yes, there is, but to rise to the level of a good salary, you need some time to work in the company in order to grasp the essence of the matter. Forex situation is exactly the same.
If you want to profit from the work on Forex is a month, it means that you are in deep illusion, The sooner you get out of it, the cheaper it will cost. In my opinion, in order to get closer to a profit to go through several stages.
1 It is necessary to master the basics of technical analysis.
2 It is necessary to learn to feel the danger and know when absolutely unwise to enter the market.
3 should be the ability to find the point of entry into the market with minimal risk.
For the passage of these three stages is fine demo account with virtual money. In this case, it should be to at least a few months. This will form your strategy, identify its weaknesses and to treat the virtual deposit with the same respect as a small real.
4. It is necessary change some of the qualities of his character and form new ones. Improve the trading strategy.
At this stage you will need a small real account. It seems to me that for these purposes would be the best deposit equal to 30% - 50% of their salary. This amount is enough to refer to your deposit is serious, and at the same time, such a small amount makes me feel very comfortable, except for panic at the slightest movement of the market against you.
Strongly recommend to open a deposit on Lent money, hoping to quickly double the deposit and pay the debt.
For myself I know: this psychological pressure is almost impossible to sustain.
Moreover, if you do not have enough money to open a deposit, this means that the fate of life itself-does not want you to do it. Who would want to go against their own destiny?
This is not courage, but folly.
5 It is necessary to gain some experience.
Experience can not only successfully find good entry and exit points, but also to correct errors with minimal loss or a small profit. In addition, sometimes there are situations when the mind intuitively sees a familiar pattern (pattern) of the market and accurately make the right decisions even without in-depth technical analysis of the situation.
6 It is necessary to have a sufficiently large deposit.
At the initial stage of work on Forex double small deposit is possible. If the expected market movement of 100 points corresponds to the profit of 20% of the initial deposit, you will need only 500 points trades to double your score.