How to Win in Forex

How to Win in Forex -

Ever heard of the 90 / 90 / 90 rule?

That's 90% of Forex retail traders lose 90% of their deposited money within 90 days of opening a trading account. As for the other 10%? They lose their money too, just more slowly. I lost about 70% of my money in about 180 days.

Thankfully, I didn't lose the other 30% before figuring it out:

How to actually win in Forex.

The truth is that, over time, very VERY few retail traders (including so-called "Educators") actually make consistent money long-term. This is because the primary narrative found in the Forex market is designed to cause you to fail. The more money you lose, the more money the "big guys" make.

Related: Stocks vs Forex: Why Trade Forex?

And what is this narrative?

Day-trading. Or "scalping" as it's commonly called in Forex.

>But wait! Aren't there plenty of Forex day-traders who share their success and teach others?

Oh, you mean an educator? Who makes money from you purchasing their education materials and attending their seminars?

>But they show their trades! They trade live!

It is actually really easy to fake trades. One option is to just have two accounts and show the results on the account that won. Buy on one account and sell on another – whichever account wins is the one you show.

But let's pretend that day-traders can make money consistently.

I'm going to show you why the opposite of day-trading, long-term trading, is more consistent and produces better results than day-trading. I'm going to show you why long-term trading is how to win in Forex.

Note: Day-trading itself is not inherently bad, but day-trading the Forex is a losing game because of access to the double-edge sword of ridiculously high leverage and the excessive "noise" in the daily forex market.

Why Long-Term Trading Works

Due to the fact that the day-trading narrative is so pervasive in the Forex market, when I say "Long-term" many Forex traders think: "Oh, you mean looking at 1 hour candlesticks."

Occasionally you get someone who thinks 4 hour candles...

How about 1 day candles.

Many currency pairs have major trends that last for months, which can only really be seen by looking at 1 day candles (at minimum). This is what long-term trading is all about: trading the big trends for weeks or even months.

Before you dismiss this idea, let me explain why it works and why it can provide you with a monthly income more consistently than day-trading.

Let's look at a graph of the EUR/USD from 2017:

The yellow line is a "speed line" that shows how many pips-per-day, on average, a trader would have made by going long on the EUR/USD at about 1.0729 back in April, and holding until the beginning of August.

Why does this matter?

That's a guaranteed average of 10 pips per day by trading long-term. In contrast, nothing is guaranteed in day-trading, except that you will lose most of your money.

If you traded only 60,000 units, which is $6 per pip, that's a guaranteed average of $60 per day. That's an average of $300 per week, or $600 bi-weekly.

How much is your current paycheck? How does that compare?

If you get paid $8 per hour and work 40 hours per week, that's only $320 per week (before taxes). Except the difference is you made an average of $300 per week trading Forex and doing absolutely no work at all.

Correction, I suppose you did do some work pushing the "buy" button back in April.

Do you think Warren Buffett, billionaire investor, works for his money? His money truly works for him. He just lets his investments sit while they generate about $20 million per DAY. If you trade every day, you are not making your money work for you. Instead, you are still working for your money.

If you traded 100,000 units, or $10 per pip, that's a guaranteed average of $100 per day. That's an average of $500 per week, or $1,000 bi-weekly.

At minimum, you only need about $1,200 as margin to trade 60,000 units (for 50 times leverage). Although, in order to stay in the trade long-term without getting a margin call, it is best to have at least $3,000 to $4,000 in your account and only trade with the $1,200.

Ideally, a trader should use less than 20% of their money for long-term trades (the screenshot above is only using about 5% due to my personal comfort level of only trading with 200,000 units).

If you do trade with 20%, the other 80% is not being wasted by just sitting in your account. It is allowing you to survive market swings while you make a guaranteed gain. You are already trading with way more money than you have: 60,000 units on the EUR/USD means you are trading $60,000 with only $1,200 as collateral. So let the other 80% of your margin sit tight while you make money.

Now, don't dismiss this information just because you don't have $3,000 or because other trends would only produce 8 pips per day, or something like that. That's not the point.

For one, some trends can produce 20-50 pips per day on average.

Here's the GBP/NZD with an average of 23 pips per day:

But that's not the point either.

The point is guaranteed growth.

Long-term trading guarantees long-term growth. Even if you only trade medium-term by trading for a few weeks at a time, you'll do a lot better than day-traders (any growth at all would be better than blowing up your account in 90 days). And even if you only have $200, that money can grow significantly over a year (more on that below).

Day-trading absolutely cannot provide guaranteed growth. It only provides guaranteed losses. Why? Because when you are day-trading, you are completely unaware of the mega-trend happening, lasting for months, and you often trade in the opposite direction of that mega-trend.

There is a lot of "noise" in the forex market.

Even when you trade in the correct direction, due to the short-sightedness of looking at 1 minute candles, you may not realize that you could have made money if you had just stayed in the trade longer than a few minutes.

Consider this: Why would anyone ever trade in the opposite direction of the mega-trend? That's the very definition of missing the forest for a tree. Making any trade against the year-long mega-trend is like trying to climb a mountain during an avalanche.

So then, how do you make a monthly income from a long-term trade lasting for 2-6 months (or even 6+ months)?

Guaranteed Monthly Income from Long-Term Trading

How to Win in Forex: Guaranteed Monthly Income from Long-term Trading -

There are a few options available to long-term traders as the trade continues in their favor.

If they are holding a trade for several months, then oftentimes their unrealized profit is considered a part of their margin, so one option is to actually add to their trade by using some of their unrealized profit as margin.

If trading 60,000 units can produce an average of $300 per week, then after a month you may have about $1,200 in unrealized profit.

If you use a small portion of that unrealized profit to enter into an additional trade of only 10,000 units, then now each new pip is worth $7 ($6 + $1). Now you are earning an average of $350 per week, or $1,400 per month.

If you only started with $3,000 then you are growing your account extremely fast: roughly a 40% gain per month. Stock market investors hope for only a 10% gain per YEAR. At a rate of 40% per month, $3,000 becomes more than $150,000 in a year.

Yes, that's the power of compounding:

  1. $3,000 x 1.4 = $4,200 (+$1,200)
  2. $4,200 x 1.4 = $5,880 (+$1,680)
  3. $5,880 x 1.4 = $8,232 (+$2,352)
  4. $8,232 x 1.4 = $11,525 (+$3,293)
  5. $11,525 x 1.4 = $16,135 (+$4,610)
  6. $16,135 x 1.4 = $22,588 (+$6,453)
  7. $22,588 x 1.4 = $31,624 (+$9,036)
  8. $31,624 x 1.4 = $44,273 (+$12,649)
  9. $44,273 x 1.4 = $61,983 (+$17,710)
  10. $61,983 x 1.4 = $86,776 (+$24,793)
  11. $86,776 x 1.4 = $121,487 (+$34,711)
  12. $121,487 x 1.4 = $170,082 (+$48,595)

And a humble $200 can become about $11,340 in 12 months, placing you at month 4 in the above example, which means you can to turn $200 into over $150,000 in only about 20 months.

Now, these numbers obviously make a few assumptions. First of all, it assumes you will be in a trade all year long, which may not always be possible. Although that doesn't mean you still can't trade. You just might have to enter the trade in the opposite direction after a month of waiting to confirm a reversal of the big trend.

It also assumes that you are not going to withdrawal any of your money for the first year.

But there is a benefit to this: Look how large your account has grown after 1 year and LOOK at how much money you made that last month. You made $48,600 in ONE month using only 20% of your money with a safe long-term strategy of gaining an average of ONLY 10 pips per day.

And what happens if you wait one more month?

$170,082 x 1.4 = $238,115 (+$68,033)

Can you survive on $68,033 per month?

How to Win in Forex: Guaranteed Monthly Income from Long-term Trading -

But why don't I include "losses?"

Because if this is only one super-long trade, then technically there are no losses. You might see your unrealized profit diminish a little bit, only to go back up along with the trend, but you won't ever actually realize a loss because you'll be 500+ pips in the green.

Alternatively, if you want a monthly income now (and don't want to wait to grow your account so you are making more than $50,000 per month), then the second option a long-term trader can do is simply exit the trade at the end of the month to realize their profit and immediately re-enter the trade.

The only main difference between realized and unrealized profit is that unrealized profit cannot be withdrawn from your account. Otherwise they are generally treated as the same thing. So if you want to withdrawal some of your money, then you can just realize the profit by exiting the trade only to immediately re-enter a new trade.

Technically, you can think of it as one trade because the only difference between the two options is "realizing" profit for withdrawal. And the only cost associated with "realizing profit," by closing the trade and re-entering, is paying another 2 pip spread, which is nothing compared to the 50+ pips per week you are gaining (on average).

If It's This Easy, Then Why...?

If it's this easy, then why don't more people do it?

Because day-trading is the same as gambling, and gambling is addicting. Ironically, it is more difficult for people to hit the button one time (and let it sit), than it is for them to spend hours trading every day.

There's a reason why retail traders are called "dumb money."

The dumb money gambles, whereas the smart money opens a casino. Or, at the very least, the smart money only plays a game they can win.

I only bring this truth up now because all the "dumb money" stopped reading this article towards the top as soon as I mentioned long-term trading. It's not "fun" to trade long-term: keeping their finger off the trigger, while they let the money roll in, is boring.

No anxiety, no excitement, no fear of potentially losing big. It's boring making money confidently.

I bet Warren Buffett is really bored making over $20 million per DAY.

How to Win in Forex: Guaranteed Monthly Income from Long-term Trading -

If trading long-term is boring to you, then find a hobby while you let the money roll in.

Lucky for you, my hobby is writing.

You're welcome.

How I Win in Forex

If you read this article, then I have already told you for FREE how to make money and win in forex.

However, I haven't shared everything I know. You can certainly go and make money trading forex with this free information, but if you want to know specifically how I guarantee that I win, then you can.

Enjoy this page? Share it!

Get more great stuff like this delivered to your inbox


  1. How to Survive Your First Year in Business [Infographic]

    How to Survive Your First Year in Business [Infographic] Here's the first thing you should know about your first year as an entrepreneur - it's tough. There will be financial and psychological...

    Read More

  2. 52+ Common Interview Questions and Answers

    Most job interviews consist of only 5 to 20 questions, almost all of which are variations of these 52 common interview questions and answers. The following guide provides suggestions on how best...

    Read More

  3. The Millennial Job Dilemma: Why Does Everyone Want Experience?

    Many job-seeking Millennials find themselves asking the same set of questions: Why Does Everyone Want Experience? How am I supposed to get experience if no one gives me a chance? Often Millennials...

    Read More

  4. 5 Expensive Common Mistakes Made by Millennial Entrepreneurs

    As a millennial entrepreneur, handling the funds of your business can be quite tricky. Our friends over at discuss the expensive common mistakes made by millennial entrepreneurs...

    Read More

  5. Link Exchange and Backlinks for Business Websites: Link Exchange Directory

    Want to exchange links for your business-related website? The following is a list of ways to get backlinks, as well as a list of websites willing to participate in link exchanges. Submitting your...

    Read More

  6. Forex: How Much Money Do You Need to Trade the Daily Timeframe

    The answer might surprise you how much money you need to trade the daily timeframe in forex. If your forex broker uses standard lots, then in order to trade one micro-lot of 1,000 you only need...

    Read More

  7. How to Trade Forex with $100: Turn $100 to $1 Million in 3 Years Realistically

    Not only am I going to show you how to trade forex with $100, but I am also going to show you how to turn $100 to $1 Million in 3 years realistically in forex. Sound impossible? Let me prove it...

    Read More

  8. Forex Trend Trading is How to Win in Forex

    I’m going to prove to you that forex trend trading is how to win in forex. There are some who claim that it is foolish to buy something that is rising in value, but I think they are foolish for...

    Read More

  9. Trading Forex: $1000 to $1 Million in 2 Years Realistically

    Is it possible to turn $1000 into $1 Million in 2 years? Yes, it is possible to turn $1000 into $1 Million in 2 years and it is even realistic with this consistently profitable strategy...

    Read More

  10. What is Leverage in Forex?

    Understanding how leverage works in forex is essential to being successful as a forex trader. The availability of high leverage is the primary reason why making money in forex has so much potential...

    Read More