What is Forex, not everyone knows, however, many have heard this concept, which is directly associated with easy money. Remember, there is no easy money, but the answer to the question: “is it realistic to make money on Forex” is positive.
First, trading should not be treated as a game. This is exactly how many not so trustworthy companies, supposedly providing access to the Forex market, try to present this type of activity. While this is pretty serious mental work.
Secondly, do not expect a lot of money at first. The most important thing for a beginner is to understand all the intricacies and specifics of this activity, as well as preserve his capital.
Thirdly, do not follow the advice of forum "gurus", do not make buying / selling decisions on the advice of others. The basis of trade is an understanding of the principles of price dynamics and forecasting its changes based on our own analysis.
Therefore, having sufficient theoretical knowledge and experience working on a real account, and not on training counterparts, you can earn.
People who want to embark on the difficult path of a trader have a question: “Is it realistic to make money on Forex?” the second follows: "How much can you earn?" The question is straightforward, but no one will give a clear answer. Many pseudo-experienced professionals claim that income is directly proportional to the size of the deposit. This is not entirely true.
How much to earn on Forex
Earnings of a trader depends on several components:
- stable dynamics of a particular currency pair;
- trader experience;
- the trading system used by him and the ability to correctly interpret the signals given by her;
- trading on the market in compliance with the basic rules, using stop loss and take profit.
Is it realistic to make money on Forex with a small initial capital? For the sake of example, consider the work of two traders. One of them has a large deposit in the amount of several tens of thousands of dollars, the other has only a thousand. At the same time, the first one does not have its own trading strategy, opens positions based on its intuition, does not set a stop loss that limits its possible loss. He sits all day in front of the monitor, nervous, makes mistakes, closes positions ahead of time or, incorrectly assessing the dynamics of price changes, enters the market at the wrong time and suffers losses. The second trader, with a thousand on deposit, first carefully analyzes the condition, double-checks his assumption using various indicators. Enters the market on a signal, places orders and can calmly go about their business. In the evening, he will either receive the money or take small damage. Most often, this will be the first option, and by the end of the month he can double or triple his score. The income does not depend on the deposit, it depends on how the trader uses it.
How to make money on exchange rates
Before you start making money, you need to study the theory. The choice of books on Forex should be approached no less responsibly than the choice of a dealing center. Find out who the author of the books is, what they write about him, how his works and the usefulness of this literature are evaluated. This will avoid unnecessary waste of time on useless information. Now a lot of divorced scams trying to make money on various courses. Imagine yourself in the place of this person. If you earned a lot of money trading currencies, would you share your own, blood and sweat, strategies, albeit for a good fee? People are divided into two types: practitioners and theorists. It’s not a pity for practitioners to talk about their successes and achievements — they are not interested. At the same time, theorists, having touched this craft a little, will run to scribble memoirs, telling everyone about whether it is realistic to make money on Forex, and gather the audience for their paid seminars.