Make money in Forex is possible, yes. However, it is not an easy task as every single currency in the foreign exchange is affected by many variables. From fundamental factors such as politicians or economic data to technical conditions such as volume and supply and demand, everything counts. You should understand it if you want to make money in Forex.
However, how to make money in Forex, that’s the question. Keep reading and here in ForexTraders.Guide, we will guide you on what it takes to be profitable in Forex.
Can you make money in Forex?
Yes, but it is interesting that people that they think that investments and being a profitable product as a trader is an easy task. They do believe that as traders are quietly watching charts in their desks and trading stations, their work is easy. However, believe us, it is a hard buck to be made.
First, you should understand the principles of Forex. What drives each currency and, for instance, a pair. Also, how is violent are the movements usually and what are the psychological levels to keep in mind always.
For example, if you are trading the GBP/JPY, there is a study that says that every time the GBP/JPY crosses above a .80 level, it will reach at least the .00. Also, if it falls below the .20, it will go until the .00 level. In other words, if the GBP/USD breaks above the 140.80, it will most of the time go to the 141.00 area.
It is just a sample, but it is a picture of what you need to know to make money in Forex. However, you don’t need to see every bit of data or news to trade Forex. You can do trade easier if you develop your own strategy and become a master of a single pair or strategy.
So you are not going to have to understand the whole Forex world; something almost impossible, but you will realize the synergies of the small piece of the market you become an expert.
Long story short, is Forex profitable? Yes, it is. Just learn how to do it right.
So, what can you do to make money in Forex?
The first thing you should do is to open an account with a Forex broker. We strongly recommend to open a demo account and to practice for at least six months before going live in a real money account.
Education in Forex is everything, so testing all strategies and understanding the synergies in the market is critical. The demo account will give you this possibility and risking no money as Forex demo accounts are free.
So, look for a broker who offers demo accounts and educational stuff. Learn how to trade Forex, identify patterns, and actually trade in paper money.
After becoming a master of your strategy and improving your trading skills, you can go live, but you should stick in your strategy. It is the third step.
Follow your trading plan and respect your profit targets, stop losses, and risk tolerance.
Finally, protect your money. A good broker will always help you to maintain your money safely, but it is your responsibility to always have enough funds to trade. Remember that the market will be there tomorrow, so be sure that your account will be too.
Check our forex comparison table in ForexTraders.Guide and find the best option for you.
On the other hand, you can make money in Forex with actually no trading if you decide to bet on forex robots and expert advisors.
How to make money in Forex without actually trading
Too good to be true? Not really. Do you realize that we all follow patterns and strategies in our Forex life? Well, a forex robot is a software designed by traders and coded into a system that supports what you do manually.
The difference here is that you will not have to be seated in your chair all the time, but the software can run 24/7, all the time, in many markets. Just think, the possibilities are almost endless.
Successful traders use software and trading robots. Actually, they design it and hire IT guys to deploy their strategies into the software so that they can cover more markets and pairs.
So, getting back to the question, how to make money in forex? There are two ways, the traditional where you should learn how to do it right and trade manually, and the other, with robots that trade for you.