How can I make money through forex trading?

There is one answer you have gotten that was the shortest of all the answers but had the most substance and was the most honest.

“Sell trading strategies and automated trading bots.” – KC Parsons

The most wrong answer was this:

“While you will also learn very profitable trading techniques, thе secret of successful trading lies іn three basic facts: simple logic, application оf ѕоmе simple economic policies аnd finally amassing knowledge. Thеѕе principles, іf applied effectively, саn easily become thе bedrock of best trading strategies ever revealed tо thе world. Sоmе оf thеse detailed trading strategies are uncovered and THEY DO WORK!”

Some answers talked about focusing on certain pairs, following the trend, look for resistance levels, retracements, trade on higher time frames, etc.

Those answers were also wrong (well, mostly wrong, like 90% wrong).

Before I get into either the flat out lies or just plain naive answers to this question, I want to talk to you about the best strategy for you to employ:

Google ‘nearest psychodynamic doctor’.

You need to learn about your own past traumatic events and experiences so that you can become aware of how you respond to situations of crisis. You need to know how you react to the pain of loss or how you avoid the possibility of that kind of pain.

Trading is the antithesis of human behavior. Trading is a career where you are actively fighting against years of internal defenses designed to protect you from hurting yourself. And when you engage in that kind of activity without knowing yourself, you are going to hurt yourself.

And I’m serious. The kind of damage you are going to do to you mentally, spiritually and physically is real and significant. Don’t read this and just pass it off as fear mongering. This is an activity that has destroyed families, destroyed individuals and destroyed lives.

No profitable trader would EVER suggest you trade.

I have met so few actual profitable traders, but the ones I have met and talked to… we have a shared experience on our journey to profitability. There is no joy in our profit.

So if you want the best strategy? Learn about you.

But I know that’s not what you wanted. You read this and don’t care. I was you once.

You want something that shows a chart with instructions and some advice. I don’t want to do that. I think you should just walk away from trying anything related to trading. But I will share with you though one of the things that helped me get on the right path in regards to trading. It wasn’t the only thing but it was one thing.

This indicator is called Ichimoku. Calling it an indicator is kind of silly because really it’s a trading system. It’s full fancy Japanese name is irrelevant. So are the fancy Japanese names for all the lines and the cloud those blobs of green and pink/redish areas). Let’s do a little quick run through how this baby works.

1. Fast line (green line).
2. Slow line (red line)
3. Lagging Line (orange line)
4. Cloud (the red and pinkish/redish blobs.

The nice thing about Ichimoku is that it lets you know if you are trending or in going to be ranging. When you see that Lagging Line (orange line) within the price area, that means you have entered a highly probable area of consolidation and range.

The signal to buy or sell are quite simple, I am using an example to go long so if you want to go short, just do the opposite:

1. Price must be above the cloud.
2. Wait for the lagging line (orange line) to get above the cloud.
3. When price touches or crosses above the fast line (green line), go long.
4. If you want to, watch for price to pull back to slow line (red) and then let it test that line and go long again.
5. When ever the fast line crosses below the red line, exit the trade.
6. Do not take a trade if price is inside the cloud.

But I’ll say this again. Even thought this is a tried and true system to trade, you will lose money trading it because you do not know yourself.

To complete what I wanted to say about the naive answers or lies, I’ll say this: success at trading is 10% your ‘strategy’, your technical analysis, your risk management, your attitude and your knowledge. Those things have almost nothing to do with your success.

Technical Analysis is easy. An 8th grader can learn it. That’s why a bunch of these self-styled experts and internet door-to-door salesmen sell crap: because it’s easy to understand.

90% of your success is going to be based on your emotions and a knowledge of your own psychological condition.

edit note: There are books up on books upon books upon blogs upon articles regarding Ichimoku, you should have little trouble finding out more on the system and the theories to employ it.