Spot Forex Trading

How to trade binary options profitably website is primarily about binary options, but we must discuss how to trade spot forex profitably as well.

As I described in the article Binary Options and what you need to know which you must read, trading binary options requires you to be trading with a winning percentage of 58% or better (assuming an 80% payout) to be making decent profit and you need to keep at that winning percentage forever.

That works out at around winning 6 out of every 10 trades forever and unless you are also using the trade copying service that I recommend in that article to help you sustain that winning percentage whilst getting in enough trades over the course of a month, then you are going to battle.

Now with trading spot forex and using a Reward to Risk Ratio (RR) of 2:1 as an example you are now turning the maths more in your favor as you will only need to be winning around 40% of your trades to come out ahead, even after costs.

As a quick and very basic example, let us say that in a trade of spot fx that you  have a stop loss (SL) that can lose you $100 and a Take Profit (TP) that will make you $200. So, the reward is twice the risk, i.e. 2:1

If you lose 6 trades at $100 per trade, then you have lost $600 and yet if you win 4 trades at $200 you have won $800, so you come out ahead even after costs.

If we compare that with binary options and an 80% payout:

If you lose 6 trades at $100 per trade, then you have lost $600 and if you win 4 trades paying out 80% of your $100 = $80 x 4 = $320

So you lost $600 and only won $320 which means that you lost $280 compared to actually winning around $200 with the spot forex trade. Do you follow?

Increase your reward to risk ratio to 3:1 or more and the winning percentage is lower to come out ahead, but of course you need to have the stomach and trading capital to handle the drawdown involved with that, but the maths behind it is solid and if you can achieve that, you will be successful.

Now of course it is not as easy as it looks either and if you do a search on YouTube or Google, it seems that every man and his dog has a winning strategy that they are happy to share with you for X amount of dollars.

Now I am sure that you have probably heard the statistic bandied about that 95% of traders blow up their accounts and that there is a small 5% of traders worldwide that actually make money?

Well if that is true and I believe that it probably is, then how come so many experts selling their how to win courses?

Well in my opinion, it is probably that they had some success when the markets were favorable to their strategy, but markets change continuously and it turns out that their strategy only works in certain market conditions and in the end they ended up with the 95% of losers and the only way to make money now is to sell their program to the masses via the internet.

Don't call me cynical, because that unfortunately is the reality.

So the big question is, how do you get to learn to trade spot forex successfully and who can you trust to teach you?

Well, out of the thousands and possibly tens of thousands of vendors selling systems you want to make sure that they are actually trading the markets themselves and that they have some years of proven experience and also the facts and figures to back it up and very importantly, client testimonials to confirm it all.

If they can provide all of that, then you possibly have someone genuine and that is the person or program that you want to follow and learn from.

Below are my recommended providers that cover the aforementioned criteria:

Complete Currency Trader

Market Club

Do not forget though, that you can be using my binary options copy trading service so long to make some cash.

==>> Check it out here