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1. Do not for a moment believe that you can just jump in to the market and jump out with a few pips to your name.

The market can be pretty rude to unsuspecting ‘players’. I call these traders ‘players’ because that is just what they are doing – playing with their finances absolutely ignorant of the way the market operates.

2. Some brokers refer to forex trading as “betting”.

Frankly I do not trust such brokers. For people who really ‘trade’ this would be a matter of great amusement. Betting is for gamblers who are just trying their luck. Traders know where the product they are dealing in is headed and buy it just to sell it later for a profit.

3. The laws of economics do apply and in order to aid the professional ‘trader’ there are many tools available to help determine the demand and supply of the product they are trading, in this case currency pairs.

4. Making profits trading forex takes time.

Frankly, it took me 6 years. It is still not possible for me to know exactly where to enter or where to exit a trade in order to make a profit. However, I do know when to cut my losses in time. Read on to find out how:

Forex Trading Rules That Have Worked For Me – Manual Trading, Technical Charting, Averaging Minimum Points Daily, Using Dual Monitors and Earning Profits on Commissions

I have developed a strategy over the years, a completely manual trading strategy, therefore it is not tested on a ‘strategy tester’ – perhaps because of my lack of scripting knowledge – but I doubt it can be automated.

My strategy involves technical charting, news and personal, human observation. My strategy takes out 10 to 400 points on a fractional pip platform using the MT4 platform. It involves sitting before the monitor for hours (6 to 10 hours) each day and then some.

Despite being able to take out as many as 20 consecutive winning trades (and a minimum of 7 winning trades) it is not possible to enter the market multiple times a day. Sometimes I just make 2 trades in a day, sometimes none. But, I have never been able to place more than 5 orders in a single day.

I make an average of 25 points a day leading to 500 points in a month. On a fractional pip platform, trading 16 lots (10,000 USD per lot) I make 800 USD per month! Not bad for a 500 USD account traded with 1:400 leverage!

It could be a pain sitting for hours watching a screen waiting and waiting for a setup. But then I double up as a writer too. One monitor is dedicated to my forex trading and the other to my writing work.

I handle forex accounts for 6 friends who pay me a commission from the profits, so I guess, the ‘PIPs’ really add up. Not bad for a ‘side business!’

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Ihab Salloum