A recent study by a reputed strategist brought out an interesting statistics. The strategist studied over 43 million profiles of real traders within 2014 and 2015 and showed that over 50% of them closed their trades on profit. So whatever you have heard to date on how money makes money in forex and how very lucrative the market is, are all true.
But again, you may argue that every coin has two sides. So does this, however, with a few simple tips and tricks, you can stay on the profit making list and turn “forex money making machine” into a reality.
- Money makes money in forex, so do your homework.
All puns are intended while speaking about money in forex. It is the currency exchange market from where you make a profit, but proper money management is also required to stay on the same lines.
Learn all the associated terms before stepping into “make money forex freedom” world. Find out about the leverage concept where you can trade with $100,000 lot size by investing just $100. Also, see what carry trading means and how you can use it as an alternate source of trading.
- Keep your charts and plots clean.
Technical and fundamental analyses are primary pre-requisites of forex investing. Your broker or “forex money making software” will provide you with real-time charts and plots of currency pairs along with a host of technical tools.
Do not overuse the tools. Two oscillators and a couple of volatility indicators are enough to test the market. Congesting the plot with tools may result in conflicting predictions, and you may end up on the wrong side of the road.
- Join a forum and stay active.
Get associated with a forex forum, even more than one will help. Here, various other traders and experts post comments about market sentiments and what are the recent events that are likely to affect the market.
Chip in as well if you carry out a successful trade or learn something new. With this give and take policy, you may end up receiving priceless information. Join and see why “make money forex forum” is a trending concept.
- Protect your account and check emotions.
At times, it so happens that you buy Euros at 1.21 and the market soared to 1.25 the very next day. You are now tempted to wait for more profit. Unfortunately, the market fell to 1.19, and you lose out. But, you still wait as the market did soar once and in the process, Euro fell further to 1.15.
What happened here is that you let your emotions take the better of you. No doubt prospect of ‘forex money makes money’ is tempting but veteran traders suggest that you have to have the mentality to get in and come out at any time. Place protective stop loss to your account and pre-set sell quote. This way, no matter to what lengths the market soars, your assets are sold automatically.
So, does following all this allow making money on forex easy? A perfect yes cannot be said, but you can adopt them as guidelines that will pave your way to higher profits. It is a $5.3 trillion daily market with 24 hour business period, and few wise measures can definitely increase returns.
Learn at your own pace and start small. Do not be tempted by money makes money in forex and bid too high. Use low leverages initially and accept that forex trading is more like a long-term profit concept and daily losses hardly matter.