HOW TO MAKE MONEY IN FOREX

HOW TO MAKE MONEY IN FOREX

How to make money in Forex?

The question has a broad range of answers.  First, you need to ask yourself, “Why am I interested in Forex”? In other words, what’s your objective?

Possible answers:

1. I want to get rich so quick. This is NOT Forex. Forex Trading involves a high risk of loss, especially for new market entrants like you. How do I get disciplined and be ready for Forex?
1. Understand that there is nothing in the world that grants easy money. And if it exists, No one would tell you its secrets. There however exist businesses that have higher rewards/risks. Forex is one of these!
2. Read more. Visit our Forex Articles section; there are plenty of beginner’s articles.
3. 
   
4. Subscribe in Forex forums. See what people are saying about their trades. 
1. 1. Attend some Forex training sessions
   2. Buy Forex books. Buy the beginner’s ones, don’t rush to the advanced level before understanding the basics (Below, we will give you some beginner tips)
2. I want to work from home. This is a good reason. However, DON’T step into Forex and think of leaving your fulltime job before you really master it. This won’t take less than 12-18 months. I know this might be a long period from your point of view, but this is a short period from my perception which is based on 8 years of trading. Read (a-e) above. These apply for you too.
3. I like the high leverage involved. I could double my money in a matter of hours. That’s a gambler’s perception. Well, if you want to Forex Bet, you are welcome. But don’t think of steady incomes, its like the casino, you can lose 10 times in a row when you bet for the color “red” in the roulette although the probability is 50%, and vice versa. Even if you made a killing in the beginning, you will lose it faster than you imagine.
4. I have a steady income, but I want to increase it. That’s a great answer
5. I have some money to invest. That’s a great answer
2. Now, how to make money in Forex?
   1. Open a Demo account with any of the Forex Brokers of your choice.
   2. Understand the following :
      1. What is a pip? It’s the smallest unit of measuring changes in the values of a currency.
      2. What is a bid and asking price of currency pairs? One is used for buying and the other for selling
      3. Why are the bid and asking prices different? The difference between them is called the SPREAD. This is what the Forex Broker gains when you trade (buy or sell)
      4. What is a limit? It’s the pip that at which, you would like to TAKE PROFIT.
      5. What is a stop loss? It’s the pip that at which, you would like to STOP LOSING any further.
      6. How to open a trade? Decide if it’s a buy or a sell trade, and then click on the left side of the currency pair box for selling or right side for buying.
      7. How to close a trade? In your Opened positions tab, right click on the trade, and choose close position. A pop-up window will appear to confirm, click OK or YES.
      8. What is an order? It’s a buy/sell order that you give to the trading platform to perform at a CERTAIN UPCOMING/PROJECTED price.
   Is this How to make money in Forex? NOT YET, be patient, read more below
   1. Start using charts. Open any free Forex Charts provider, and choose the currency pair you wish to see. What do you realize?
      1. A chart appears with a lot of Forex Candlesticks. (Don’t start reading about Candlesticks until you’re finished reading this article)
      2. Zoom in, you will see that each bar/candle represent a single price action in a defined time-frame. You can change this time frame to look at different price histories for this currency pair.
      3. Try to understand the Chart Pattern, and decide if you will trade with the pattern or use a Forex Indicator to signal a reversal
      4. Once you’ve identified a trade, don’t place it until you identify your Stop Loss. This is more important than the trade itself. NEVER leave your trades floating! This is a big mistake that all forex traders fall within.
   Now, that you know How To Make Money in Forex, start trading WISELY and don’t rush. We are here to help you unbiased. So feel free to ask any questions before you shoot for anything new to you.
   We will be updating this article with newer ideas on a regular basis.
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