Many of the novice traders often ask the same question: “How to make money on Forex”, but do not even think that trading on the currency exchange is the same job that requires special skills and experience from you. Imagine that you graduated from the law faculty of some prestigious university, but did not find a suitable place for yourself, went to work as a turner at a factory. What happens if you get to work right away without receiving appropriate training and instruction? In the best case, you simply will not succeed, and in the worst case, you will lose a couple of fingers on your hand. Forex trading also requires certain knowledge and ability to apply it in practice. But for some reason everyone decided that it was very easy to trade on Forex. You just need to guess the direction of movement of the currency pair and open a deal in time. With this approach, you will not earn much, but instead will lose all your investment. That is why there are so many negative reviews about Forex. After trading for several days, novice traders come to the conclusion that Forex is a scam that siphons the last money out of people. However, you can make good money on Forex, which is confirmed by the real stories of professional traders who started trading with $ 500, and now live in warm countries in luxurious villas and ride yachts. If you think that this is unrealistic, feel free to close this page and go to your “favorite” job. For the rest, we will reveal three secrets that will allow you to become successful traders.
1. Do not switch to a real account until you have learned how to trade profitably on a demo account
If you are new to Forex, then first you need to get comfortable in a new environment for you. First, download the most popular and convenient MT4 trading terminal. In addition, it is absolutely free, and you are provided with a demo account, which is no different from a real trading account. Do not rush to immediately switch to a real account. First, you must thoroughly study the trading terminal, since the profitable outcome of the transaction largely depends on the promptness of decision-making. Secondly, you must undergo at least basic training, thanks to which you will learn how to conduct fundamental and technical analysis and perfectly master all the tools of the trading terminal. If you do not want to spend money on training, then you can use the information on our website. Here you will find everything you need and relevant for successful trading, including strategies, advisors and training materials.
2. Choose only reliable brokers
According to statistics, most of the failures of novice traders are associated with the choice of unreliable dealing centers, which are popularly called “kitchens”. Their main difference from reliable brokerage companies is that dealing centers do not bring their clients’ transactions to the interbank market; as a result, your profit is direct losses of the dealing center. Thus, it is extremely unprofitable for the dealing center for you to trade with profit, so it begins to put a spoke in your wheels, preventing you from opening a deal at a favorable price, replacing real quotes with false ones, as a result of which hairpins are formed that knock out your positions by stop loss, as well as simply refusing to pay out honestly earned money. Due to the activities of such unscrupulous companies, there is a growing number of disgruntled traders who are completely disappointed in Forex trading. Therefore, before you start trading, you should make sure that your broker is reliable. A reliable brokerage company will not interfere with a trader’s trade, as it makes money on spreads and other commissions. If you cannot determine whether a broker is a reliable company or is it just a “kitchen”, then see our reputable Forex broker rating, with the help of which you can find a truly honest and conscientious brokerage company.
3. Control your emotions
To start making money on Forex, you first need to stop losing your investment. As trite as it sounds, this is the basic rule of successful trading. For example, you have a profitable trading system with which you have already become a dollar millionaire on a demo account. And now you have decided that it is time to switch to a real account. But after a while, you drain your deposit. Isn’t it a familiar situation? Let’s look at the reasons for such a common phenomenon in Forex:
Greed. You want to make money as quickly as possible, as a result of which you delay with taking profit, as a result, the price turns against you, and you get a loss;
Fear. This is the opposite situation, when you are afraid of getting losses, so you close the position too early with minimal profit, but delay the exit from the unprofitable position in the hope that the price may still reverse;
Excitement. After receiving losses, the excitement seizes you, and you begin to double or even triple the lot in the hope of recouping by opening trades where you would not have done on a demo account.
These are the top three reasons for all Forex failures, and there is no need to blame the broker or your trading system. Only complete control over human emotions will allow you to start making profitable money on Forex. To stop dumping and start making money, follow these guidelines:
always strictly follow the rules of your trading system;
do not overstate the lot, follow the rules of money management;
use stop loss and take profit in all trades.
We hope that after reading our recommendations, you will no longer have any questions: “Is it realistic to make money on Forex?” or “How to make money on Forex from scratch?” For those who do not want to delve into all the intricacies of currency trading, there are three alternative ways:
trading with advisors;
PAMM investment;