How to make money in forex

If I could sum up forex trading in 5 steps, here's what they'd be.

1) Rid yourself of the get-rich-quick mindset.
2) Use a simple system (that works!).
3) Practice.
4) Practice some more.
5) Enjoy the fruits of your labor (in other words, make money).

Let me explain each one.

Rid yourself of the get-rich-quick mindset. There is a disease that most of the people looking to better themselves have. It's "make a lot of easy money fast" disease. It comes
from reading too many books full of hype and too many infomercials.

It will destroy your ability to make significant money at anything, especially trading. Yes, there is a lot of money to be made in the forex market. But you're not going to make it your first week, or your first month. You might not even make it your first year.

Does that discourage you? If so, you are a sufferer of this disease. Believe me; the goal of making money by trading forex is very attainable. And it is worth the effort. $$$

But you are going to have to commit yourself to doing it right, if you want to do it successfully at all. Are you with me? Good. (You have just been cured.)

Next you need a simple system that works. Nothing is more discouraging to a new trader than to be doing everything right and still lose because of a bad system. Furthermore, a complicated system is another sure route to failure. It must be simple.

So, how do you tell if a system is good? It can be complicated. Here is the easiest way. Ignore income claims and backtesting results. They are worthless. First they are easily faked. Secondly, many systems that backtest well blow up in real trading.

Stick to old systems that are proven through out time. I'm talking about Fibonacci retracements, Bollinger band squeezes, etc. You can learn all you need to about these methods for small amounts of money (if you don't know already). Save your $997. You don't need the latest and greatest automatic trading system. Fibonacci still works. It will most likely work until the world ends.

Now you practice. There are hundreds of forex brokers that are hungry for your business. All are willing to give you free demo accounts with free charts. Sign up for one and practice.

Enter demo trades just as if they were real. Don't worry about winning or losing. No one is going to see your trading record. Prove to yourself that you can follow the rules.

Guess what? Step 4 is more practice. Why? Because you didn't do step 3 right (which is to practice). You didn't follow the rules. You didn't take trades when you should have. You exited early to grab profits. You did, didn't you? (Hey, it's okay. I've been there and done that.)

So practice some more. You can do this right. You can make money trading forex. I know you can. Just follow the steps, okay. Practice.

Finally, you've reach the last step. You've practiced. You're following the rules. You're actually picking winning trades, and your account balance is larger than when you started. You're ready for real money. You're going to get rich!

Whoa!! Let's not get that easy money disease again. Things will be bumpy when you first start using real cash. However, you know what to do. If you do it, you will make money. (Read the last two sentences again and let that sink in.)