Personal example of making money on Forex
There's a myth circulating online that only banks and
large players with millions of dollars of capital make money in the Forex market.
Moreover, in this statement, ordinary traders are compared to small fish, which are capable of the most at avoiding danger in time, and in most cases are just food.
Such statements with a philosophical context can be seen on any Forex forum or website, where a losing trader seeks global justification, but cannot understand that the cause of his mistakes is himself.
Traders also constantly try to come up with complex algorithms, making their lives more difficult and not realizing that simple, well-written rules written by smart people in books still work today, because the market is made up of people, meaning it shares all the human qualities that have remained unchanged for centuries.
To debunk the myth that it's impossible to make money on the Forex market, I decided to share a personal example of how I made money on Forex. Of course, this article won't give you the full financial details, but with some example trades, you'll see that it's not only possible, but also not that difficult.
However, we have our own opinion on news trading, as we've conducted numerous studies on its impact. The essence of news trading is to select a moderate or strong piece of news for a given instrument, analyze the previous indicator value, and decide to enter a position when the updated indicator is released.
In my case, I traded the "US Nonfarm Payrolls Change" news on the GBP/USD currency pair. The beauty of trading the news is that you don't have to be an economist, as any economic calendar describes its impact.
As you can see in the image, positive dollar data was released, meaning the pound will decline. Therefore, we opened a sell position and set a stop order near the nearest local high. I'd like to add that while we were thinking about it, the price had already moved 30 pips down, as expected, and returned to the starting point from which we sold the pound.
The vast majority of traders immediately exited the market, as many believe the news only has an impact at the time of release. However, from our previous analysis of the US Nonfarm Payrolls , we knew its impact could last for 10 hours. Therefore, we didn't close our position but waited for the trade to complete. The result is below:
As you can see, by holding the trade until the end of the day, the price actually moved 110 pips, and the profit per trade was $22, even with a deposit of only $100.
This second personal example of making money in the Forex market is based on a simple investor trading strategy.
The prerequisite for opening a trade is choosing an instrument with a clear long-term trend on higher time frames . As you understand, you need to open a position in the direction of the trend and hold it for as long as possible until signs of a reversal appear. For example, see the image below:
A series of orders were opened using the same pattern, with the positions held for only one day. The results of the open trades are shown below:
You'll agree, the trading results are more than convincing, even though no complex systems or indicators were used to open trades. You might say this is a coincidence or simply Photoshop, but to counter your argument, I'd like to attach a real trading report for the trading strategy described above:
The report may not look as attractive as the ones on various websites offering trading strategies or advisors, but unlike those fake, beautifully drawn charts, you were able to see my personal example of earning money on Forex, without any falsehoods.
