Earn money from forex trading” could mean different things to different individuals. But in nutshell, it simply means the process of gaining, or making profit from foreign exchange market trading. Many people in the society make money from the market trading nowadays. It could be attributed to many factors which may be internal or external. Internal factors are those factors the trader has to deal with directly; i.e. is the individual in the business. Internal factors affect the trader directly.
While external factors that determine how one could get money from forex trading are those factors that are beyond the control of an individual or the trader himself.
INTERNAL FACTORS THAT AFFECT HOW ONE MAKE MONEY FROM FOREX TRADING
Individual’s job type: the type of job or work an individual does can go a long way in affecting how one could earn money from trading. If one’s job is such that it gives the individual enough time to know what is happening, one’s chance of profiting from market is increased. But if one’s job or work type does not allow one to know what is happening in the market, one’s income may be adversely affected
One belief: an adage goes thus “people used to go to the internet, but now people live in the internet”. Foreign exchange market is almost entirely online business. If one’s belief does not support the use of internet facilities, it could affect how much the person will make in a particular period of time.
EXTERNAL FACTORS THAT AFFECT HOW ONE EARN MONEY FROM FOREX TRADING
Interest rate: interest rate in a particular country can directly affect how one makes money in the market. If one buys a commodity and the interest rate of the foreign country increases, the commodity value increases. This will make the trader to get more money from the business. If one buys a security and the interest rate of the foreign country decreases, it will be devalued. This will result in less gain to the trader.
Political factors: political factors have to do with the political situation of a particular country. It also deals with the type of government which could be military or democratic type of government. Favorable political condition of a country is one the major factors that determine how one profit from the market. If the political condition is favorable, the country’s currency will appreciate and traders who have it in stock will gain. But if the political condition of a country is not favorable, the country’s it will be devalued; and the traders who have it in stock will lose.
Gross domestic product of a country (GDP): gross domestic product is quantity of goods and services the country can offer in particular period of time. Increase in gross domestic product of a country will increase how one earn money in forex market and vice versa.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.