How to make a living trading foreign exchange courtney smith

Courtney Smith, a renowned trader, author, and educator, is well-known for teaching thousands how to trade the forex market profitably. His approach to trading foreign exchange is built on solid principles, discipline, and a realistic mindset—key factors for anyone who wants to make a living from trading.

In this article, we explore how to make a living trading foreign exchange using key lessons from Courtney Smith's methodology and how to get started effectively in today’s forex market.

Who is Courtney Smith?

Courtney Smith is a respected figure in the financial world. With decades of experience in trading, hedge fund management, and authoring several trading books, he has helped both beginner and professional traders master forex strategies.

One of his most popular books, “How to Make a Living Trading Foreign Exchange”, breaks down his step-by-step system for consistent profits in the FX market.

Can You Really Make a Living Trading Forex?

The short answer is yes, but not without a clear system, discipline, and proper expectations. Forex trading is not a get-rich-quick scheme — it requires skill, patience, and the right tools.

Courtney Smith emphasizes the importance of treating trading like a business. That means having:

• A structured strategy

• A risk management plan

• Daily routines and trading hours

• A trading journal to review performance

If you can follow these principles, forex trading can become a full-time income source.

Courtney Smith’s 6-Step Trading System

Here’s a simplified version of Courtney Smith's system for successful forex trading:

1. Donchian Channel Breakout Strategy

Smith's primary strategy focuses on breakouts using Donchian Channels, which identify the highest highs and lowest lows over a specific period. This method helps traders spot momentum-driven price movements.

2. Power Meter Confirmation

He uses a custom “Power Meter” to determine the relative strength of currency pairs. This allows traders to enter positions that align with the strongest and weakest currencies — increasing win probability.

3. Risk Management

Courtney advocates risking no more than 2% of your trading capital per trade. His principle is simple: preserve your capital first, then grow it.

4. Scaling In & Out of Positions

Rather than opening one large position, Smith teaches traders to scale in gradually, adding positions as the trade moves in their favor.

5. Automated Exit Strategies

He stresses using preset stop-loss and take-profit levels, removing emotion from the decision-making process.

6. Mindset and Discipline

Most importantly, he teaches traders to manage their psychology, avoid revenge trading, and remain disciplined.

Tools You Need to Trade Like Courtney Smith

To follow this system successfully, you need access to:

• A reliable charting platform with Donchian Channel indicators

• Fast order execution with minimal slippage

• Low spreads and tight commissions

• Access to major and minor currency pairs

• Strong educational resources

👉 To get started, explore this list of the best Forex brokers that offer the tools needed to implement Courtney Smith's strategies effectively.

How Much Capital Do You Need?

Courtney suggests that $5,000–$10,000 is a reasonable amount to begin serious trading. With this capital, you can use proper position sizing, manage risk well, and slowly build income.

That said, some traders start with as little as $500 or $1,000 using micro-lot accounts. However, you must adjust expectations based on your account size.

How Long Does It Take to Make a Living?

Building consistent profits takes time and experience. According to Courtney, most traders need 6–12 months of dedicated practice and study before trading for a living becomes realistic.

It’s recommended to:

• Start with a demo account

• Move to a small live account

• Slowly scale up your position sizes as your skills grow

👉 Find a broker that offers low minimum deposits and free demo accounts here to begin your journey with confidence.

Final Tips to Make a Living Trading Forex

• Stick to your strategy even when tempted to chase quick profits

• Review your trades weekly — learn from both wins and losses

• Automate as much of your trading process as possible

• Follow major economic news but don’t let it control your decisions

• Avoid overtrading — quality over quantity always wins

Conclusion

Making a living through forex trading is possible, and Courtney Smith’s structured approach proves that. His 6-step trading system, based on breakout strategies, risk control, and psychology, lays the foundation for consistent results.

If you're ready to follow his path, start by:

• Learning the basics

• Practicing discipline

• Using the right trading tools

👉 Begin your trading journey with one of the best Forex brokers here and set yourself up for long-term success in the currency markets.