{"id":9193,"date":"2025-01-21T18:00:50","date_gmt":"2025-01-21T09:00:50","guid":{"rendered":"https:\/\/is6.com\/info\/?p=9193"},"modified":"2025-01-24T16:31:26","modified_gmt":"2025-01-24T07:31:26","slug":"20250121","status":"publish","type":"post","link":"https:\/\/is6.com\/info\/en\/column\/20250121\/","title":{"rendered":"How to become a trader who earns millions in FX? 7 steps to take"},"content":{"rendered":"

\"\"<\/p>\n

\nMany traders in the world of FX have earned millions. If you\u2019re starting FX, it\u2019s only natural to aspire to such success. This guide explains step by step what FX beginners need to do to aim for that level of achievement. The content is structured for clarity, so feel free to use it as a reference.\n<\/p>\n

Step 1: Open an Account with an FX Broker<\/h2>\n

\"\"<\/p>\n

\nTo trade FX, you need a dedicated account. Begin by opening an account with an FX broker. There are two types of brokers: overseas FX brokers and domestic FX brokers. Below are the merits and demerits of each, so you can choose the one that suits you best. If you\u2019re an FX beginner unsure of where to start, it\u2019s recommended to open an account with an overseas FX broker for now.\n<\/p>\n

Merits and Demerits of Overseas FX Brokers<\/h3>\n

\nMerits:\n<\/p>\n

\nZero-cut system available
\nLeverage ranging from hundreds to thousands of times
\nWide variety of currencies available\n<\/p>\n

\nThe greatest advantage of overseas FX brokers is the zero-cut system. This system ensures that any negative balance is covered by the broker, preventing traders from incurring debt. By using an overseas FX broker with a zero-cut system, you can completely eliminate the risk of falling into debt. Here are the disadvantages of Overseas FX Brokers:\n<\/p>\n

\nSpreads tend to be slightly higher.
\nSome brokers, though few, do not support Japanese language.\n<\/p>\n

Merits and Demerits of Domestic FX Brokers<\/h3>\n

\nBelow are the Merits of Domestic FX Brokers:\n<\/p>\n

\nHigh loss cut levels
\nNarrow spreads
\nAbundant promotional campaigns\n<\/p>\n

\nDomestic brokers\u2019 main advantage is their high loss cut levels, which allow you to retain a portion of your funds even if you fail to cut losses. Here are the disadvantages of Domestic FX Brokers.\n<\/p>\n

\nHigher capital requirements
\nLimited leverage compared to overseas brokers
\nLower maximum leverage\n<\/p>\n

Step 2: Study about FX | What is the recommended study method?<\/h2>\n

\"\"<\/p>\n

\nSome people may have successfully opened their accounts and are eager to start trading right away. While that enthusiasm is important, let\u2019s calm down for a moment and solidify the basic knowledge in your head. By doing this, you can lower the risk of making major mistakes. Since this will also lead to the future, there is no harm in studying here. Now, let me introduce some recommended study methods.\n<\/p>\n

Study through internet articles<\/h3>\n

\nRecently, there are various FX information media on the internet. These media outlets cover a wide range of information, from the basics of FX to strategies. Therefore, utilizing FX information media to study is also an option. The advantage of internet articles is that you can get information for free.\n<\/p>\n

\nMany people might feel uncertain about the quality of free information, but there are traders who have earned 50,000 to 100,000 yen a month using only free information. The method of studying through internet articles is recommended for people who “don’t want to spend much money on learning.”\n<\/p>\n

Study through books<\/h3>\n

\nCurrently, there are various books about FX. Some are written by financial experts, and some by millionaire traders. Using books to study FX is also an option. The advantage of studying through books is that you can obtain professional knowledge at a low price (1,500 to 2,000 yen).\n<\/p>\n

\nIf you can learn the thoughts and strategies of experts and professional traders for just a few thousand yen, it\u2019s a very cost-effective way to study. The method of studying through books is recommended for people who “want to spend a little money to gain professional knowledge.”\n<\/p>\n

Study through online salons<\/h3>\n

\nAn online salon is a closed community on the internet. Joining such an online salon and studying FX is another method. The advantage of studying in an online salon is that you can learn practical know-how. Some salons even show live trading sessions by professional traders.\n<\/p>\n

\nThrough these live sessions, they may explain the reasoning behind entry points and market conditions. Studying in an online salon is recommended for those who want to acquire practical know-how.\n<\/p>\n

Study through SNS<\/h3>\n

\nThe advantage of studying FX through SNS is that you can get fresh, up-to-date information. For example, try searching for \u201cUSDJPY\u201d on X (formerly Twitter). By doing so, you can see what strategies other traders are currently using. Some people provide detailed explanations, using chart images to share their forecasts.\n<\/p>\n

\nStudying through SNS is recommended for people who “want to get the latest information without spending money.” However, be cautious, as there are many people who engage in fraudulent activities, so do not believe everything you read.\n<\/p>\n

Step 3: Establishing Your Trading Style | What Are the Characteristics of Each Style?<\/h2>\n

\"\"<\/p>\n

\nOnce you have absorbed a certain amount of FX information, you have completed the acquisition of basic knowledge. Next, let\u2019s prepare for trading. Specifically, we will establish your trading style. There are three trading styles: “scalping,” “day trading,” and “swing trading.” Try to find which one suits you. Now, let\u2019s go over the characteristics of each trading style.\n<\/p>\n

Characteristics of Scalping<\/h3>\n

\nScalping is a trading style that completes a trade in a few seconds to a few tens of seconds. It accumulates small profits of around 1 to 5 pips over time. The advantages of scalping are as follows:\n<\/p>\n

\nLow risk of incurring significant losses
\nLow risk of being caught in sharp rises or falls
\nCan trade with a small amount of capital
\nCan trade using only technical analysis\n<\/p>\n

\nThe disadvantages of scalping are as follows:\n<\/p>\n

\nCannot achieve large profits without completing many trades
\nRequires staying glued to the screen
\nA single second\u2019s delay in judgment can result in failure\n<\/p>\n

\nFor those who want to “make many trades” or “trade with a small amount of capital,” try scalping.\n<\/p>\n

Characteristics of Day Trading<\/h3>\n

\nDay trading is a trading style that completes trades within minutes to several hours. Basically, everything from entry to exit is completed within the same day. The advantages of day trading are as follows:\n<\/p>\n

\nCan finish trades within minutes to hours, making it well-suited for part-time traders
\nCan achieve large profits in a short time (minutes)
\nHas a wealth of know-how
\nSince positions are not carried over to the next day, stress tends to be lower\n<\/p>\n

\nThe disadvantages of day trading are as follows:\n<\/p>\n

\nRequires skill in reading price movements a few minutes ahead
\nRequires more capital than scalping
\nWhile you don\u2019t have to stay glued to the screen, you still need to monitor the market fairly regularly\n<\/p>\n

\nFor those who want to “make use of time after work” or “trade with efficient capital usage,” try day trading.\n<\/p>\n

Characteristics of Swing Trading<\/h3>\n

\nSwing trading is a trading style where positions are held for more than a day, with many people holding them for 3 to 7 days. The advantages of swing trading are as follows:\n<\/p>\n

\nYou can target profits in the hundreds of thousands of yen in a single trade
\nThere\u2019s no need to check the market frequently
\nLess likely to encounter false signals
\nLittle need for technical analysis\n<\/p>\n

\nThe disadvantages of swing trading are as follows:\n<\/p>\n

\nThere\u2019s a potential for large losses
\nMore susceptible to sharp market movements
\nRequires mastery of fundamental analysis\n<\/p>\n

\nFor those who “don\u2019t want to spend too much time on FX” or “value the amount of profit over win rate,” try swing trading.\n<\/p>\n

Step 4: Establishing Your Trading Method | What are the Recommended Methods?<\/h2>\n

\"\"<\/p>\n

\nA trading style is like an ingredient in cooking. Next, you need to learn how to prepare these ingredients. In the world of FX, this is called a “trading method.” There are various trading methods, so try them out and choose one that suits you. If you can\u2019t decide, try the “trend-following method targeting pullbacks and retracements.” The steps for the trend-following method are as follows:\n<\/p>\n

\nDuring an uptrend, target a moment when the chart briefly drops (a pullback).
\nOnce the chart drops briefly, enter by buying.
\nClose the trade when the chart breaks below the most recent low.\n<\/p>\n

\nThe trend-following method is considered a basic trading technique in FX. There are traders who have earned millions using this method, so be sure to master it.\n<\/p>\n

Step 5: Establishing Trading Rules | What Are the Basic Rules You Should Decide on?<\/h2>\n

\"\"<\/p>\n

\nOnce you have established your trading method, the next step is to establish your trading rules. You are free to decide the rules, but make sure to decide on the following three:\n<\/p>\n

\nTiming for stop-loss
\nTiming for profit-taking
\nTrade lot size\n<\/p>\n

\nIn particular, you should decide on the “timing for stop-loss” specifically. This is because stop-loss is a necessary action to minimize losses. If you can\u2019t implement stop-loss effectively, your trades will end up being “small profits, large losses,” and no matter how excellent your strategy is, you won\u2019t be able to win.\n<\/p>\n

\nThere are traders who have made millions just by thoroughly implementing stop-loss, so make sure to decide specifically on “how many pips to stop-loss” or “how much loss in yen will trigger stop-loss.”\n<\/p>\n

Step 6: Trade Using Low-Risk Methods | What Are the Ways to Do This?<\/h2>\n

\"\"<\/p>\n

\nFor FX beginners, the first thing to focus on is “not making major mistakes.” If you can achieve this, it\u2019s fair to say you\u2019ve scored 100%. Therefore, before moving on to actual trading, learn low-risk trading methods. Here are three recommendations to guide you:\n<\/p>\n

Trade with Low Lot Sizes<\/h3>\n

\nIt is recommended for FX beginners to trade using the smallest lot sizes. This is because, for beginners, getting accustomed to FX is more important than making profits. If you trade with large lot sizes right away, there\u2019s a risk of losing all your investment funds in just a few trades, so be cautious.\n<\/p>\n

Trade with Surplus Savings<\/h3>\n

\nThe basic principle of investing is to trade using surplus savings. This is because there is always a possibility of losing money in investments. Trading with money you cannot afford to lose may lead to pressure that impairs your ability to make calm decisions. Naturally, this would decrease your chances of success. At the start, always trade with money you can afford to lose.\n<\/p>\n

Trade Currency Pairs with Stable Movements<\/h3>\n

\nFX beginners are encouraged to trade currency pairs with stable price movements. This is because trading pairs with volatile price movements from the outset can lead to significant losses. Start with stable currency pairs to familiarize yourself with the chart movements.\n<\/p>\n

Step 7: Repeatedly Improve Your Trades<\/h2>\n

\"\"<\/p>\n

\nWhen you start trading, you might find that things don\u2019t always go smoothly. If failures are frequent, take note of them and work on improving. Progress comes through trial and error. By continuously making improvements daily, in a few months or years, you will likely achieve significantly higher success rates in your trades.\n<\/p>\n

Summary<\/h2>\n

\nIn this guide, we explained what FX beginners should do to become traders capable of earning millions. Let\u2019s briefly recap. To become a successful trader, follow these steps:\n<\/p>\n

\nOpen an account with an FX trading platform
\nStudy
\nEstablish a trading style
\nDevelop a trading strategy
\nSet up trading rules
\nStart trading with low-risk methods
\nContinuously improve your trading\n<\/p>\n

\nBecoming a high-earning trader doesn\u2019t require special techniques. The key is: \u201cLearn, act, and improve.\u201d Every trader currently earning millions started as a beginner. So don\u2019t give up\u2014steadily keep learning and practicing to achieve your goals.<\/p>\n","protected":false},"excerpt":{"rendered":"

Many traders in the world of FX have earned millions. If you\u2019re starting FX, it\u2019s only natural to aspire to such success. This guide explains step by step what FX beginners need to do to aim for that level of achievement. The content is structured for clarity, so feel free to use it as a […]<\/p>\n","protected":false},"author":1,"featured_media":9194,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_locale":"en_US","_original_post":"https:\/\/is6.com\/info\/?p=9181","footnotes":""},"categories":[13,12,17],"tags":[],"class_list":["post-9193","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-beginner","category-column","category-translated-column","en-US"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/is6.com\/info\/wp-json\/wp\/v2\/posts\/9193","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/is6.com\/info\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/is6.com\/info\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/is6.com\/info\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/is6.com\/info\/wp-json\/wp\/v2\/comments?post=9193"}],"version-history":[{"count":1,"href":"https:\/\/is6.com\/info\/wp-json\/wp\/v2\/posts\/9193\/revisions"}],"predecessor-version":[{"id":9202,"href":"https:\/\/is6.com\/info\/wp-json\/wp\/v2\/posts\/9193\/revisions\/9202"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/is6.com\/info\/wp-json\/wp\/v2\/media\/9194"}],"wp:attachment":[{"href":"https:\/\/is6.com\/info\/wp-json\/wp\/v2\/media?parent=9193"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/is6.com\/info\/wp-json\/wp\/v2\/categories?post=9193"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/is6.com\/info\/wp-json\/wp\/v2\/tags?post=9193"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}