Forex Trading Benefits: A Manual Trading Strategy That Works
It is possible to take Forex as a full time profession. In fact, it is the only home business that anyone can create from home with as little as $ 1,500. You will need $ 500 to set up with a laptop and internet connection and $ 1000 to fund your personal forex ECN account. In 20 days you will be earning more than USD 200 per day with this strategy, but it takes time and patience.
Good charting software that comes with the popular MT4 trading platform that almost all brokers offer for free along with a trading account is the only tool you need. Add to that knowledge of business strategies and risk management, and you’re all set to set up the perfect home business without any overhead.
It is possible to earn as much or as little (however you look at it) as $ 200 per day trading forex with a $ 1,000 account.
I’ll tell you a little secret forex trading strategy of mine:
Trade 0.5 percent of your deposit in PIP value. This means that one pip must equal 0.5 percent of your deposit. So if your deposit is $ 1000, your exposure per pip should be $ 5.
This will leave you with 160 pips to play. The chances of the market moving 100 pips in the wrong direction are slim if you have one eye on the screen while the trade is open.
A good strategy will give you a broad warning that the market will move further and you can choose not to participate. I suggest you keep a stop loss of 120 pips, trust me, you will never need it if you follow this strategy.
Look at a monthly chart. Mark the highest point and the lowest point that the pair reached during a 3-month period. Observe the most common price that the currency pair kept returning to and draw a line through that point. That is your entry point. Go long 0.2 lots at that point and go short the same point 0.2 lots. Its value per pip will be 2 USD in each operation.
With 160 pips to play, you don’t have to worry about the margin call. The market will move in both directions and return to the same entry point at one point or another. You should set alerts on MT4 for 10 pips above and 12 pips below the entry price. When the alert sounds, exit the trade.
If the market turns away in either direction, you will still be able to make a profitable trade. It will be a matter of time before the market returns to the entry point.
With a 0.2 lot trade and a profit point at 10 pips, you can earn $ 20 per trade. You will get at least 4 opportunities to trade in one day. That will cost you $ 80 per day. With a consistent trading strategy, you will earn 1600 USD in 20 days. Use it to increase your value per pip.
This is a strategy that has worked for me for the last 2 years. Why shouldn’t it work for you? The only thing that could be a problem here is that you need patience and you have to be in front of your terminal every day. You will also pay if you increase your deposit and reduce your trading percentage. The lower the better because then you will have more pips to play with if the market moves against the trade. Remember, the market will return to the entry point, you just have to wait without fear of a margin call.