Almost every person who is interested in effective methods of earning income has heard about making money from Forex. This topic has been actively discussed for decades; every year thousands of people register with special brokers and start trading. Some of them manage to earn good money; others get nothing and sometimes lose their investments.
What do you need to earn on Forex?
Let us first define what Forex is. This is an international currency exchange, which was established in the XIX century to provide settlement between banks and large organizations. With time, speculators appeared, who wanted to earn big money fast on currency fluctuations.
So, to make a profit at Forex you have to make the right deals, guessing the movement of currency rates. You should minimize your mistakes because each one of them will cost you your finances.
How to start earning without experience or money?
At first sight, Forex appears to be an extremely difficult kind of earning, beyond the reach of an ordinary man. However, even inexperienced people without much money can make money. You will have to compensate for their absence with hard work and training.
Choosing a brokerage firm
This is one of the most crucial steps of Forex trading because your choice will directly impact your success and potential profitability. There are several key criteria a trader should consider while choosing a broker:
- Company rating;
- Working period of the broker;
- Minimum deposit amount;
- Spread size;
- Availability of bonuses and qualified support of traders.
Take a profile training
You do not need to be a doctor of economics, but you should acquire a basic knowledge of how the economy works. To do so, you can take one of the many online courses, many of which are available to everyone for free, and you can open a demo account.
Deciding on a methodology
This is an extremely important step that has a major impact on your trading success. There is a large number of various, simple and complex methods with different tools. At the same time, the most complicated variants are not always the most effective, which you should also take into account. It is advisable to choose several trading methods and analyze their efficiency by the quotations’ motion history.
Selecting the targets
It’s important to set specific goals in advance. Your first goal is to reach the break-even point and hold onto it for a long period, to consolidate your position. Going forward you may want to aim for a certain level of profit.
Choosing a management option
We are talking about the money management option. Many beginners will make a big mistake by gambling with a lot of their capital. In most cases, they lose their money very fast and get disappointed in trading. By playing with smaller amounts (1-5% of your total capital) you are much more likely to succeed.
Determine a strategy
You should develop a plan of action for the long term, taking into consideration the capital you have, as well as your trading techniques and approach. By doing so you will be able to get a rough idea of what you are setting yourself up for.
Account strategy and first-time earnings
It is a good idea to trade on a demo account at first, as you will not risk losing real money on the account if you make any mistakes. Once you’ve got experience and tested your strategy, you should start trading with real money.
If you do not have any initial capital, you can find Forex Trading Platforms with Free Bonuses in South Africa. Or you can use other people’s funds – many investors are willing to invest their capital in the work of a trader for a subsequent increase of their funds (the trader receives a percentage of transactions). However, this option is only suitable for experienced and confident traders, as losing other people’s money can be very problematic.
Passionate Writer, Blogger and Amazon Affiliate Expert since 2014.