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Daido’s Forex Faucet
Written by: PaxForex analytics dept - Monday, 11 February 2019 0 comments
Konnichiwa. My name is Daido and I am from Okinawa. Today I want to share with you my approach to earn money from trading forex. I have entered the forex market only two years ago, but before that I studied it for another two years. I still consider myself a new trader, but with enough experience to avoid the most common mistakes. I think that in order to truly become successful as a trader, you need to master the market. In order to mater the market, you need to spend time with it. I compare it to martial arts where you will repeat each new move until you can execute it to perfection. Some may think this is boring, but I believe it is key to start earning a continuous income stream.
I don’t want to discourage new traders, but I also don’t want to tell them something which doesn’t apply. In order to become a successful forex trader, one needs to first master certain characteristics. I know from my own studies that there is plenty of material written about emotions and how they will lead to losses if you allow them to guide your trading decisions. I fully agree as I have made those mistakes at first. Each time I made an emotional trading decision, usually motivated by anger or revenge, I only increased my losses. There is a reason many successful trades talk about emotions first.
From my experience, one of the biggest factors which contributes to emotional trading is the lack of a clear plan. Many have no idea what it is they are looking for. When they are asked, they respond: “To make money!” This is not a plan, it is an emotionally driven quest which is why they let their emotions control their trading. Before I take a trade, I always know what I am looking for in regards of profits. I analyze the charts, take a look at fundamentals and identify the trend. I then calculate my profit expectations and I enter my entire trade with take profits and stop loss. After that I am not worried about it anymore until the trade is closed for either a profit or loss.
This takes emotions out of trading for me as much as possible, I am human so emotions will always be part of me. I never rush to adjust my levels or go crazy over economic reports. I know that my trade is properly entered and ready for any outcome. This truly helps me sleep better at night. After I identified the trend of a currency pair and know which way I plan to trade it, I do trade it quite often. I am not scalping the forex market, but I am looking for small and repetitive profits. My average profits per trade is only 9 pips and while this doesn’t sound like a great deal, I do place over 100 trades per
I like to compare my approach to a faucet. A faucet supplies a small amount of water to the user, enough to fulfil the desired task. Individually, each amount of water from the faucet is not significant and won’t be able to fill a large reservoir. Imagine how often you use a water faucet every day, and how many times you successfully get enough water for washing your hands, doing the dishes or drinking. While each amount of water is relatively small, you are never dissatisfied with it. It become such a normal part of our daily life, that we never even think about it.
Now imagine you have to fill an entire water reservoir for the city with just your faucet. It will not only become a very frustrating task, it will also cause you to either quit or get very emotional. The same is true for forex trading. Many new traders enter the forex market, chasing wild dreams of quick riches with no effort. They make small deposits and already think about all the great things they will buy without ever placing a trade. This is the same as trying to fill a reservoir from a water faucet.
Earning money works in the same fashion. When forex traders have the big picture in mind and money is their sole motivation, they face the same dilemma as filling that water reservoir with a faucet. Most traders only have a small amount of capital to start with, often less than $1,000 which is a dripping water faucet at best. Therefore looking for big returns with a few trades becomes a very frustrating task. Emotions kick in, bad trading decisions follow and that dripping water faucet becomes dry as traders lose all the capital they had.
This is the reason I recommend my Forex Faucet Strategy as an alternative way to look at trading forex. I look for small profits, but plenty of them. I sue the forex market the same way I use a water faucet. Each time I close trades for a profit I am satisfied with my approach as it served my purposes as expected. I am not looking to fill a reservoir, but as my account balance grows so do my profits. So my current average of 9 pips will eventually grow and over time, trade-by-trade, I will fill that reservoir without even noticing. I invite you to try my approach at PaxForex, as you need a reliable and trusted partner along the way just as water needs the proper plumbing to deliver it to the desired destination. With my strategy you can avoid a lot of emotional trading mistakes, ease your stress and grow your profits.