This is a market which transacts with $5.3 trillion every day for 24 hours. Most major global banks invest almost up to 20% of their annual turnover in this trade and fetch a return of a maximum of 60%. No doubt, the foreign exchange market is one of the most lucrative financial markets even though it’s the most volatile. Most new traders come into this market with a thought process of how to make money fast in forex trading. This article addresses that exact point.
It is assumed that you have done all your research on all the technical terms involved in forex. Also, you have selected a proper broker that suits your needs. Your forex account is live and you have put in $5,000 into it. Find out how to make money fast with forex with this initial amount.
- Interpret Charts and Plots.
Make use of the charts provided by your broker. Apply the technical tools like volatility indicator and oscillators to determine the market movement of a currency pair. Also, look into what veteran traders have to say about that pair in forex forums or in their personal blogs.
If the market is expected to be bullish within the next few days, it is time to go long. Invest $2,000, of course with proper leverage, in this pair. This is one of the basic ‘forex fastest way to make money.’
- Make use of a bearish market.
A bearish market makes it easy to go long. At times, it may so happen that the market of a particular currency is on the decline. Find out this pair and invest in this. A low quote will enable you to buy more of this currency, and even if the market rises slightly, you make a profit.
Invest around $1,000 in this. Investing in a falling market is definitely risky but you can make money fast in forex with this.
- Invest in a stable currency.
Invest the rest in a stable currency. This will ensure that even if you end up losing money in the above two areas, this currency will definitely fetch you some profit. Swiss Franc and Japanese Yen are two such currencies and are considered stable.
Also, many traders prefer a lower valued currency as these economies are considered to be growing. This method is considered a safe way in forex making money fast.
- Carry Trading concept.
Even after exhausting all your initial investment, you can still carry on trading in this market. Stable economies like Japan and US lend out their currencies at low interest rates. You can borrow these for one year and use it to buy another appreciating pair.
Also, currencies like AUD and NZD come with high rates. Lending your AUD (after conversion from Yen), will enable you to “make money fast forex” from the difference in interest rates.
As it is said by expert traders, there is no crisis in foreign exchange trading and almost every situation can be used to your benefit to reap profits. How to make money fast in forex trading is explained here with $5,000. With proper leverage and money management, returns can be as high as 25% in a week. Invest smart and start trading.