Who Manages to Make Money on Forex?
If you search Google for people who have managed to make a fortune on Forex, then you will see a lot of links with information about these people. Of course, every successful trader has his own story. But there is something in common in these stories. No one has yet managed to reach a stable income without difficulty. It should be noted that we are talking about stable earnings, and not about a random single success, the profit for which the trader has already managed to lose on Forex. In all stories, the common factor is labor, training and the general rules of successful Forex trading. Without these parameters, you will never become a successful trader, how not to try.
How traders earn money
To earn money, you need to choose a broker. In Russia, the activity of brokers has been licensed since 2016. It is better for a beginner to choose large brokers with a good reputation, where at the same time you can open a minimum deposit. To help clients with minimal capital, brokers offer leverage.
For example, if the leverage is 1:50, and the trader has $ 10, he will open deals up to $ 500. But as soon as 10 “native” dollars are lost, access to the rest of the money will be closed.
The Forex workflow is multi-stage:
- Definition of short-term and long-term goals.
- Selection of currency pairs for trading and timeframe for analysis. With a small deposit, it is profitable to engage in short-term trading.
- Planning the allowable loss for the transaction and the trading day. Selection of entry and exit points.
- Selection of the control type. There is trading: traditional (the trader himself is engaged in trading), automatic (a special program is engaged in trading), confidential (an experienced specialist trades for a novice trader, receiving a percentage of profit).
- Selection of the type of trading operations and the algorithm for combining them. There are speculative, trading and hedging transactions. Speculative transactions are most often carried out on Forex.
- Creating a trading strategy. It is advisable for beginners to work on proven strategies. For example, “Three Elder Screens” or “Turtle”, designed by Richard Dennis. Professionals can act with the help of original strategies.
When everything is prepared, you can open an account and start trading.
How to start earning on Forex?
To become a professional trader, you can follow this plan:
- Choosing a center for study (selection of educational materials for self-study). Brokers focus on the financial instruments they have, so it is better to study on the platform where the trader plans to trade in the future.
- Study of terminology and laws of the market. The material that the broker provides may not be enough to comprehensively consider the features of the Forex market. To fill in the gaps in education, you need to independently search for information about issues that are not given due attention.
- Familiarity with risk reduction techniques, fundamental and technical analysis.
- Work on a demo account. On it, you can study the settings of the platform, the specifics of working on it, etc
- Opening a real account and getting real profit.
To climb to the top of professional trading, you need to study hard. There is no need to hurry, it is better to devote time to developing skills and experience.