Saturday, November 20th, 2010
Michael Johnson was a Taxi Cab Driver in Wheaton City, Maryland, USA. He heard about Forex trading and the huge gains it promises from his childhood friend. He borrowed $2000 from his credit card and started his Forex business in 2001. However, before he eventually went live with real money trading, he demo traded patiently for about six months. Today his asset is worth over $60Million and all that money was made in the Forex market. The big question is. How did he do it? What’s the insider secret he stumbled upon? This is the question being asked all over the world by Forex traders when they meet successful traders but interestingly these answers are not far-fetched, what really works in Forex are everyday rules that every beginner trader knows.

A Simple System
The Forex market is a highly unpredictable market, and you can never beat it with complex mathematical systems or strategies. Simple systems have been proven to work best in the market. The gurus in Forex all use simple systems. These systems must have an exact entry and exit point plus stop loss. This is to say a trader using these systems must be able to tell from the system when to buy a certain currency and when not to buy, also when to exit in profit or exit at a loss such that the trading capital will not be endangered.

A trader must be able to control his trading leverage. Forex brokers always offer very high leverages to the traders, but how much of it is a trader supposed to use. Never trade with leverages in the range of 100:1. Why? Because if your leverage is small then in a bad trade you will lose little and the less you lose in a trade, the more of them, you can take.
Professional traders never trade more than 3:1 leverage, and rarely are they ever over 1:1. The more bad trades you can absorb, the less you will lose per trade, and this leads to Forex profits. Also you must make sure you always use the best Forex brokers to ensure you are given the best brokerage services. You can get a list of the world’s best brokers here:

A key virtue common in the world’s top traders is patience. A trader ought not to trade every day because there are some unfavorable days that the market may not be moving and extremely choppy. Those are the days the trader should shut down his computer and go do something else.

If you are serious about making huge profiting in Forex trading, then get ready not to trade every day and by so doing you will be setting yourself up to making triple digit gains trading just a few times in a month. This is how the masters do it, and now you have learnt how.

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