The Forex market is a subspecies of the currency market.
As a result, it turned out that it was possible to make a profit on the resale of currency, and those who skillfully played on changes in their rates could also receive income.
In particular, Forex is a similar market, but on a global scale, it is also instantaneous, trading takes place via the Internet, although when it appeared in 1977 everything was slower, since transactions were made via telephone, data came via telex.
What is Forex?
The general meaning of the Forex market is quite traditional. To make money on Forex, you need to purchase various currencies at the moment when they are at a minimum in relation to others and then wait for their price to increase and, if possible, sell them at a maximum before starting a new decline.
Due to the technology of the market, in order to earn money on Forex, its participants can repeatedly purchase currencies during the day and then get rid of them, taking into account the trend.
The dollar, the euro and the yen are the main instruments that allow you to consistently earn on Forex. The largest trading volumes, in particular, take place in the dollar/euro pair.
Investments in the Forex market are quite large, but if the buyer does not have the required amount, then the company will provide him with leverage by investing a much larger amount for each of his dollars. As a result, it will be possible to make transactions with this money and the client will receive his share of the profit in the future.
The advantages of Forex are that you can start working with little money, this market is open to everyone, and the participant will also have a free schedule.
The disadvantage is that although it is quite possible to make money in this market and the number of successful traders is significant, most still do not earn. It is established that 10% of the participants are in the black. This is not at all a small figure, incomparable with the percentage of lottery winners, so many thousands of people can make money on Forex. But still, 90% of beginners do not succeed.
How to make money on Forex? — instructions for beginners
Below will be described the sequence of actions that must be performed in order to quickly make money on Forex.
Choosing a Forex broker
Since it will be very difficult for a non-professional to start making money on Forex alone, he first of all needs to choose a competent assistant – a Forex broker (company).
This organization acts as an intermediary, with the help of which a newcomer entering this market has access to quotes. Also, the broker provides his ward with leverage. In addition, the client receives from him software for Forex operations.
In the future, through the broker, the client will conduct transactions, and that, in turn, will be charged a certain percentage for each transaction. It is assumed that this company owns effective methods of earning on Forex, so that its client will not remain in the loser.
It makes sense to choose a broker taking into account a number of indicators. A careful approach to business assumes that the investor will not focus on only one of them, but will consider them all as a whole.
The ratings of these specialists are essential. A similar rating is made by both the National Rating Agency and Financial One magazine. In addition, there are a number of custom broker rating systems.
Since it is quite possible to start earning on Forex from scratch with the assistance of true professionals, you should choose a company with high quality work, favorable conditions for fees and commissions, it is desirable that it has been on the market for a long time.
Select financial instruments
The choice of financial instruments for beginners in most cases is very clear. Of course, it is very interesting to think about whether it is possible to make money on Forex by trading a pair of Swiss franc and Thai baht.
However, in most cases, traders who have just entered this market choose the standard dollar/euro pair. Even the second most important dollar/yen pair has significantly lower turnover.
The reason is that how much they earn in Forex on the main dollar / euro pair cannot be obtained with any other instruments. There is an extremely high turnover and a significant amount of fluctuations of the two currencies relative to each other, on which you can make money.
Training on a demo account
This is a necessary stage for those who want to understand exactly how to make money on Forex from scratch, and it is not recommended to skip it. The demo account makes it possible to simulate all the actions that the participant will have to perform in the process of real trading.
Of course, reading articles and textbooks will not replace a trader with a simulator from which a beginner can get an authentic feel of the forex market.
In the demo version, he will study the trading platform in detail, and all the main charts will open for him. As a result, he will be able to study how the Forex platform works without risking his own funds.
Opening a real account
The next step is to open a real account. To do this, a beginner on the site of his broker will need to register in his personal account, choosing a password and login for himself.
Next, he will need to fill out the proposed questionnaire, entering into it all the required information about himself, including he will need to indicate either a bank account or an electronic wallet, which will receive all the funds he earns. After that, he needs to choose one or another type of account, they all differ in the offered conditions.
Exit to breakeven trading
Before making money on Forex without investments, a beginner needs to ensure that he has no losses as a result of the operation. To do this, he can use win-win strategies.
They will not give chances for a big jackpot, but they will minimize the risk of going into the red. There are a significant number of such strategies, they are owned by all successful brokerage companies. This stage serves to ensure that the future trader gets the experience of a real game (for real money, not in training mode), but does not allow significant losses.
First profit
This, of course, is already an option stage, since no one can say with certainty that he will receive such a profit. But it is assumed that, having learned to limit losses, a new market participant will then move on to more promising, albeit risky, strategies. And if he acts in a successful way, then he will receive the desired income.
It is unlikely that he can hope to get at this stage as much as experienced traders earn on Forex. However, the amount of his income may well be such that it is possible to live modestly on this money, all the while improving his trading skills.
Increase trading account
This is also an optional step, although highly desirable. Everyone knows how much you can earn in forex if you have managed to master the details of this market. And if you apply a certain diligence to your own abilities and add a little luck, then a beginner in this field will succeed!
