Earnings on Forex: reviews. Step-by-step instructions for making money on Forex

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The Forex market (Forex) is an international currency market, which is a kind of virtual platform where the price of currencies of different states is formed in real time.

The Forex market does not have a common single exchange (platform), which distinguishes it from the stock market. Since this market is international and is conditionally divided into several trading sessions - European, Asian and American. Forex trading takes place around the clock, seven days a week. That is, you can earn absolutely at any time convenient for the trader.

How Forex works

Initially, the currency market was created for banks, large companies and states to exchange currencies among themselves. Or, for example, they bought dollars for yens or sold euros and bought pounds and so on.

However, as you know, demand creates supply and the market itself, which appeared in 1971, became interesting for currency speculators -traders.

The term "trader" comes from the English "trader", and it is applied to traders who are engaged in making profit in the stock and currency markets, making purchase / sale transactions.

Becoming a Forex trader, everyone acquires a risky but highly profitable profession. The main thing is to understand how to properly organize your earnings on the Forex exchange.

Making profits by speculating in currencies is not difficult in itself. It's like buying jeans somewhere for 3,000 rubles, and then selling them elsewhere for 5,000 rubles. So it is with the currency. Today it can be bought at one price, and tomorrow, if the price rises, it is profitable to sell it. True, the bank will still take its commission, but the principle remains the same.

Another option is possible: the price may not rise at all, but rather fall. And then, you will either have to sell yourself at a loss, or wait until the price goes up again.

Maybe the third one - the currency was bought, and the price went down, as the trader did not expect. You can buy more currencies, thereby averaging the cost of the purchased currency, and sell, waiting for the price to go up. This Forex-earnings strategy is called "averaging".

Sometimes it is justified, but more often it is quite risky, since the value of the currency may not start to grow in the near future, but continue to fall. In such a situation, it is very easy to quickly go into the red.

How to make money without investing your money

You can make a profit on Forex if you have trading capital. At his expense, purchase / sale transactions are concluded. To make money, you need it firstinvest in some currency, which can later be sold profitably.

However, if a trader is already experienced and understands the principles of trading and price movements, then he may well give advice to others and receive his percentage of profits.

Of course, for this you will have to constantly monitor the political and economic situation in the world and analyze the market situation, but the reward for this work is very worthy.

Some, being confident in their abilities, can offer their services to an investor as a hired trader. In this case, the investor opens an account, and a hired trader trades on it. Profit is usually divided in half, and if things go well, then investors themselves will offer their money.

It turns out that earning on Forex without investments is impossible, the only thing is whose money it will be.

Four conditions needed to start trading safely

In order to trade safely in the market, certain skills and knowledge are required. Otherwise, you can end trading on the same day you started…

If you decide to become a professional trader, these conditions are mandatory in any case.

1. Initial trading capital

Earning on Forex from scratch is almost impossible, except for criminal and immoral ways. To make money, a trader definitely needs start-up capital - his own or an investor, it doesn't matter.

Forex trading is a cross between investment and speculation. It is considered an excellent result when a regular profit from 5 to 10 comespercent monthly. This is an average of 5% to 100% per year.

This is how a Forex trader can earn if he does not reinvest profits in trading, but withdraws and spends.

If profits are not withdrawn, but constantly increase capital, then compound interest comes into play - interest on interest. In this case, the profit for the year can reach 100-500 percent.

But that's just a theory. Practice shows that only a few can regularly receive profit on Forex, which could be compared with interest on deposits in a regular bank. As a rule, this is from 8 to 15 percent per annum.

It turns out that if the goal is to earn $50 a day ($1,500 a month), then you need at least ten times the trading capital.

2. Trading experience and special knowledge

To gain experience - you need to trade, and to gain knowledge - you need to read special literature, watch videos on the topic of trading in the market, and trade and learn how to make money on Forex. Testimonials from experienced traders can also help you learn.

The best way to gain experience is to find a worthy mentor and learn from him by watching his trading and methods of analytics and forecasting.

Where to find a mentor (experienced trader):

• among acquaintances and friends;
• on Forex forums on the Internet;
• in dealing centers and brokerage companies;
• at Forex trading events and special seminars.

When choosing a mentorIt is recommended to pay attention to the following:

1. Forex trading is a hobby or the main source of income for him. A real trader will not look for earnings somewhere else, even with large incomes.
2. The results of his trading on different accounts for a year at least. Because the market is constantly changing, a profit one month can turn into a loss the next. It is advisable to find out how many accounts this trader has in total - maybe he has profit on only one account, and big losses on others.
3. If a future mentor consistently makes a profit from trading, then he will not hide anything and will demonstrate in real time how he trades on a real account. If he refuses to trade publicly, there is reason to think about whether to continue business relations with him.

3. Time and strong nerves

When a trader opens a new position, he immediately sees how price fluctuations change the size of the trading account. In a few seconds, it can increase by $100-200, and in the next moments it can decrease by any amount, up to zero.

But the trader did not close the deal as soon as it went positive, but continued to watch the chart. Obviously, he hoped to make even more profit. And this is the first enemy of the trader - greed.

There is the opposite situation - the deal goes into the red, but the inner fear "says": "Close the deal before everything is leaked!". And the trader closes the order and after some time sees that the price reversed and the deal would be profitable. But it's too late, the moment is lost.

Understanding when to close a deal and when to wait comes with experience and sometimes you have to wait for this for years, and only then does Forex earnings begin to make a profit. Traders' reviews say exactly this - patience and systematic work on yourself is the key to success.

When doing any business, it is important to remember the golden rule - never open a business with money that is last or borrowed, unless there is enough experience for such a risk.

You should always have some money "for life" in reserve while a beginner learns to trade in the market. Or you need to have some other source of income in order not to lose the last and not be disappointed in Forex before you start earning.

Like any job or business, real Forex earnings have their pros and cons.

Pros of Forex trading

You can earn a lot and quickly

Thanks to the fact that the broker provides leverage, you can turn $50 into $500 in one day. Another question is whether the risks are justified.

The amount of earnings is unlimited

Probably known to almost everyone, financier George Soros, earned more than a billion dollars overnight… The amount of earnings depends entirely on the trader.

Ease of operation

From a technical point of view, trading is no more difficult than playing a computer game or using a mobile phone. But the results, with a good combination of circumstances, can be very real and not small.

Cons of Forex trading

High risk of losing all funds

Most often, brokers offer 1x100 leverage. This means that the broker pays extra 99 parts for one part of the trader. The trader puts $10 into the trade - the broker sponsors them with another $990.

Therefore, a trader can open an order not for $100, but immediately for $10,000. Naturally, even a slight fluctuation in the exchange rate of a currency pair entails a rapid increase or decrease in the balance.

The trader's lack of experience and excitement while trading makes the chance of a loss very high.

The job requires endurance and strong nerves

If we talk about the first earnings on Forex, the reviews say that beginners sweat their palms and even increase their heart rate. Especially if the deal is big. That is why it is not recommended to engage in market trading for people with heart disease, nervous and overly emotional.

Very often, initially he althy people eventually develop so-called gambling or gambling addiction - that is, traders cannot stop and play, regardless of losses, until everyone loses. Some even start borrowing, taking out loans, selling things from home - just to make one more deal and continue to play. Such behavior is already a serious disease and one must be extremely careful not to step over this invisible line.

No guarantee of regular earnings

No one, even the most experienced trader, is ever sure that he is guaranteed to earn money tomorrow ornext month and will not suffer a loss. This just doesn't happen. Therefore, experienced professionals evaluate their trading periodically - quarterly or annually.

Thus, previous luck is by no means a guarantee of future success. The risk is always present and the success of trading depends only on the trader's ability to assess it correctly.

Step-by-step instructions for making money on Forex for beginners

It is not easy for a person who is not familiar with the basic principles of trading and the nuances of such earnings to take the right start in the foreign exchange market. Therefore, it is recommended that all novice traders take the appropriate courses, best of all with the broker with whom further work is planned.

Besides knowledge and skills, working on the “system” is extremely important, especially for a beginner. Trading discipline will allow you not to lose your money in the very first days, which often happens when you do not follow the rules or trade without a developed personal strategy. Trading according to a plan, with strict adherence to its rules, is the key to successful trading in any market.

Having studied and steadily adhering to the step-by-step instructions for making money on Forex, a beginner will be able to avoid frequent mistakes at first, and later it will help anyone, even an experienced trader.

The first step is choosing a Forex broker

A brokerage company that provides traders with the opportunity to trade through their platform on the Forex market

Undoubtedly, the success of a trader largely depends on the broker. If the broker is unreliable and dishonest, you may not see what you have earned… Therefore, tochoosing a broker should be approached very carefully.

When choosing a broker, you should pay attention to:

1. Seriousness of the site - is the broker officially registered, are there documents for brokerage activities and how long has the company existed.
2. Trader's trading account size. It can be from ten cents to hundreds of dollars.
3. Size of the spread (trading commission). The spread is the difference between the buy price and the sell price. In other words, this is the broker's commission. It is more profitable for a trader to conclude transactions with a minimum spread.
4. Service level and bonuses for traders. It is important how quickly and easily the trader withdraws his Forex earnings. Broker trading reviews are a great way to understand this. It is also important how quickly they respond and how friendly the support service and the staff of the brokerage company are.

The second step is the choice of financial instruments

In order to start trading on the market, you need to install a trading platform on your personal computer. It differs in interface and functions from different brokers.

The classic Forex trading software is Metatrader version 4 or 5. It is used by most brokers.

To fully use the program, you need to understand its capabilities, study the instructions. You can find it online or ask a broker.

After there are no questions left with the trading platform, it remains to choose a trading pair on which to trade. In Forex, these are currency pairs - Swiss franc-dollar(USD/CHF), euro-dollar (EUR/USD) and others.

Before trading, the chart and the current price movement are carefully studied. Subsequently, with the advent of experience in the market, you can trade two or more pairs.

The third step is training on a demo account

At this stage, trading begins directly. First you need to open an account - for now, training or demo. When opening an account, it is better to focus on the amount with which you plan to trade for real money in the future. For example, for $500 or $1000.

It is recommended to work on a training account for at least a couple of weeks in order to have time to understand how to trade using the terminal (trading program).

Trading on a demo account is recommended to be treated like a real account. If you thoughtlessly take risks and chase after ultra-high profits, there will be no benefit.

The most interesting thing is that trading on a demo account, most novice traders have a solid profit on their account in a few days. But when it comes to trading on a live account, things are not so simple. The fact is that the main obstacle on the way to stable earnings on Forex is the trader's emotions.

Fourth step - live trading

If a broker provides such a service, it is better to start trading on a cent account. Although trading will be for small amounts, it will not be too scary to lose a lot. But at the same time, despite the fact that the account is a cent, you can earn pretty decent money on it. And the risk is minimal.

In case of luck, whenafter some time, enough funds will accumulate on the account, you can open a dollar account on them and start trading big. But it is not recommended to rush, because according to statistics, beginners, before earning their first big money, drain several of their deposits.

Fifth step - breakeven trading

To trade without losses, in no case should you immediately try to earn a lot. The task for the first time is not to “merge”.

Only after self-confidence appears and the trading account at least does not get smaller from deal to deal, you can start thinking about how to get more profit from trading.

Sixth step - making the first profits

Perhaps the most memorable and exciting moment for a beginner is making the first profit.

However, in practice, profits often come and go just as quickly…

The saying is appropriate here: "A sign of a trader's skill is a stable result!".

A real trader who can be called a professional is not at all the one who was able to increase capital in a few days, but the one who trades profitably for months, years. The one who knows how to manage risks and shows a constant profit and systematically increases the trading account, albeit not every day and not for large amounts.

It is very important to constantly analyze your trading and try to understand what determines the price movement of a particular currency.

Experienced traders advise you to learn how to operate with percentages. For example, if you manage to steadily increase your balance by 5-10% monthly,having $100 in the account, then the next step will be an attempt to do the same, but with $200. If it works out, then you can gradually increase the trading account by 2-3 or more times.

The meaning of successful trading is not to learn how to make $1000 in a couple of days with $100, but to be able to systematically receive a certain percentage of profit from any trading capital.

The main thing to remember is that Forex is not a game or a hobby. Trading is work. Serious and heavy. Only then will it be possible to get a stable income on Forex.

How to make trading successful

Emotion control

The first enemies of any trader are greed and fear. Making money on Forex is not a war with other traders and not a rivalry in who will buy more or who will close the deal earlier. First of all, trading is a struggle with yourself. Or rather, with their emotions.

You should never open positions based only on emotions or without thinking at all. Otherwise, sooner or later, trading will turn into a game, akin to a casino, and trading capital will inevitably be lost.

Trading with strategy only

Different Forex trading strategies can be found in books and the internet. You can find it for every "taste" - both for certain trading instruments, and for various trading periods (short-term, medium-term, long-term trading).

Risk management

Never invest large sums in one trade. Losses need to be "cut off" in time. Place orders only with the possibilityforced closing, upon receipt of sufficient profit (take profit) or unexpected losses (stop loss).

In the case when the trade suddenly went wrong, as planned, you should immediately close the deal. Do not leave a position open, hoping that the price is about to turn in the right direction.

Continuous practice and learning

It's important to never stand still. A trader must constantly develop in a professional sense. Trainings and courses on Forex trading help with this.

A great option for a beginner in trading is to find an experienced mentor, communicate with those who have already passed the path of a novice trader and, most importantly, who are now successfully trading Forex.

Earnings on Forex on the Internet, gives you the opportunity to earn a lot and quickly. Moreover, here no one limits the amount of income, but at the same time the risk of losing all the money is very high.

It is possible and necessary to reduce the degree of risk if the goal is to seriously engage in trading.