Everyone dreams of working from home and becoming rich independently. To many, the temptation to trade in the Forex market may seem overwhelming, and it may seem like the answer to the question of “how to work from home.” Although I will tell you that more people lose money by investing in the Forex market than by actually winning. This is a common thing in economics … for every winner … for every dollar you can gain, someone has lost a dollar. Where does the money come from, right?
So you might ask, does anyone make any money by investing in the Forex market and if they do, are they making a living doing it? The answer to this question is of course “yes”. There are many small amateur investors who are able to make a good living in the Forex market.
I know … your next question is “How do they do it ?!” The answer is varied and goes anywhere. Those who have come through the ranks as traders, those who seem to have numbers and chart reading skills, and those amateurs who have taken the time to learn about the market have found a system. That works for them and collects their destiny. Easy enough, isn’t it? Probably not, so let’s break it down …
Learning about the Forex market – There are many resources on the internet that will give you an overview of how the Forex market works. It would be futile for me to try to educate you properly in this article. Most forex brokers have resources to help educate you and they are very helpful. They want you to succeed because they make money from every business you do in the form of “spreads”.
Looking for a profitable system – Once you know the basics and understand how the market works … how to trade, how many hours the market is open, which is 24 hours a day when the world revolves (excluding weekends and holidays) you find a “system” ready Try to do what is understandable to you and with which you can do profitable business. This system can be a manual system that allows you to monitor the various indicators and run the business once all the criteria have been met according to your system. Your system may be based on breaking news such as quarterly reports or other financial news that you know is hitting the media and thus affecting a particular currency pair. Your system can be a favorite expert advisor or “forex robot” that has proven to be profitable that runs from an algorithm, much like the system mentioned above where you see different indicators …. the software does everything with an expert advisor or forex robot. This is for you. That is “expert advisor” or “forex robot” for short.
Demo account – Once you have a profitable system that works for you and makes sense to you, I suggest you run it on a demo account or “paper trade” with it for a few months. Demo accounts are available through all major brokerages and are a must for any new trader. There is no point in wasting your seed money while you are learning. Once you realize that you are consistently profitable trading without emotion and using your trading system exclusively it will be time to move to a live account.
Live account – Where it’s interesting. Doing paper business is one thing but I will tell you that there is nothing like trading your own money. The hardest part of live trading is to be passionate about your trading and stick to your trading system. This is what sets successful traders apart from those who pay their money to successful traders and this is the hardest part of trading … the hell or high water that comes with your system.
Now that you have thousands of feet of views about Forex trading, I encourage you to educate yourself and jump in with a demo account while you feel comfortable. Trading in the Forex market is very exciting and can be very profitable for some people. Just remember where all this money comes from and decide to be a smart trader who only trades with his system and is not one of the many who pay their dues to the few who make money in the market.