Anyone can become a trader, but only a few are able to enter the list of millionaires who have made a fortune in Forex. In contrast to them, there are a lot of negative examples, when traders lost all the money they earned and invested. Whether there is a golden mean and what needs to be done in order to find it, you will learn from our review.
How much can you earn in Forex?
Cases of grandiose enrichment in Forex would not go down in history if they were recorded daily. In addition, many traders, having received large profits, often lose their vigilance, make mistakes and lose everything. A successful trader, on average, earns 10–20% of the amount that he deposited and put into circulation per month. The larger the deposit, the lower the risks, because you can trade for a lower percentage, but in absolute terms, get good money. Therefore, for a professional trader, the main thing is to be able to maintain and increase the size of your deposit in order to receive a constant income from it. Traders prefer not to talk about their earnings. There is a grain of superstition in this that is inherent in any professional gamer.
His example is science to others, or Who really made money on Forex
Those who dream of hitting a big jackpot tomorrow, improving their financial situation once and for all and resting on their laurels for the rest of their lives will be disappointed: millionaires who made a fortune in Forex have been going for years. So, one of the legendary traders, Richard Dennis, really managed to earn more than $ 200,000,000, but his profit from one transaction was about 5%. Our compatriot Vladimir Holodetskiy also became a millionaire, trading in Forex. However, he studied this hard for six months and earned $ 110,000 in seven months of trading. Such a result would suit many - the question is, are you willing to constantly invest time, effort and money to achieve it. Besides, talent is also required.
Forex for beginners, or How to start making money without experience and money?
Currently, the cost of entering the market can be negligible - many brokers offer to open a deposit starting from a symbolic amount of $ 1. It is clear that the profit from such an amount will also be negligible, therefore, clients are provided with a leverage ratio of up to 1: 500. This means that when you deposit, for example, $ 10 for transactions on Forex, you will have $ 5000 available, $ 4900 of which is provided for temporary use by the broker. However, access to the remaining money is automatically terminated as soon as you lose your own $ 10.
It is not necessary to invest a lot of money at once, $ 300-400 is quite enough to gradually reach a stable income. Of those who made money on Forex, many started that way.
Step 1. Choosing a broker
Among the forex brokers there are companies registered in Russia, operating under Russian law and licensed by the Central Bank of the Russian Federation. They meet the requirements put forward by the domestic regulator and comply with its instructions. The main required conditions are the amount of equity capital - it must be at least 100 million rubles - and participation in the work of a self-regulatory organization accredited by the Central Bank of the Russian Federation. Currently, there are only four companies licensed by the Central Bank: Alfa-Forex, Finam Forex, VTB Forex and PSB Forex.
There are also forex brokers registered abroad and under foreign jurisdiction. At the same time, the regulator controlling the work of these brokers may be, for example, the National Bank of the Republic of Belarus, the US Commodity Markets Commission, the German Federal Financial Supervision Authority, the independent financial commission FinaCom PLC LTD, and so on.
Usually, all large brokers, being interested in making money as a trader, provide free access to training materials, as well as organize paid courses and seminars.
Step 2. We go through training
There can be no successful trading without training. It is better to invest more money in special education and start trading with a smaller deposit than to regularly lose money due to lack of knowledge. The basics of trading can be mastered for free: video courses, books, webinars, forums - all of this is available on the Internet. Try to use every opportunity to gain new knowledge, and remember that a real professional is constantly learning. Even successful traders do not neglect the opportunity to take the course they are interested in on a paid basis in order to improve their level and learn from the experts. Unfortunately, there is no universal step-by-step instruction on how to make money on Forex consistently and regularly.
Step 3. Choosing an approach
Having received theoretical knowledge about the subject, you can proceed to training on a demo account. A demo account in Forex is convenient in that it allows a novice trader to study the functional features of a trading terminal and start monitoring the state of the market, using technical analysis indicators, building trend lines, concluding deals - in short, everything that has to be done when working with a real account. Since the money on the account is virtual, all actions take place absolutely painless for the player's wallet.
Vladimir Holodetskiy, who earned $ 110 thousand on Forex in just seven months of trading, already having an economic education, practiced trading on a demo account for about six months before starting transactions with "real" money.
When you feel confident in your own abilities, after training on a demo account, you can proceed to real trading.
1. Define short-term and long-term goals
First, you need to imagine what your trading tactics will be. To do this, you need to correctly prioritize by choosing:
2. Determine the type of management
There are three types of transactions in terms of trading methods.
Traditional trading. In this case, you analyze the situation on a daily basis and make decisions yourself. It takes a lot of time and effort, but this is the only way you can become a real trader.
Automatic trading. Management of your trading account can be outsourced to specialized software that will monitor the situation and perform trading operations on the market for you. You can resort to this type of management if you decide to take a break from the financial race for a while, having accumulated a substantial amount on the deposit. Any robotic programs have their drawbacks - they follow only one specific strategy, tend to become obsolete, and can make mistakes if the market situation changes radically. In short, relying entirely on automation is unwise.
Trust trading and PAMM management. Experienced traders are ready to trade for you for a certain percentage of profits if you become an investor. To do this, you can transfer your own trading account to the management of an experienced trader or put money on the deposit of a special PAMM account. It is important here to choose the right trader and PAMM accounts that have proven themselves positively. Be sure to ask about ratings and blacklists.
3. Determining the type of trading operations
If you decide to take full control of yourself, you will have to master all types of trading operations in order to carry out them as needed and in combination.
Speculative deals. The principle of any speculation is to sell for dear what was bought cheap.
Trade deals. They are simply aimed at buying or selling a product, that is, currency. May be part of speculative or hedging transactions.
Hedging transactions. They are carried out to compensate for possible risks from other transactions.
Basically, speculative trades are carried out in Forex, but, depending on the strategy you choose, at one time or another you may need a trade or hedging trade.
4. Choosing a trading strategy
A beginner should not reinvent the wheel; at first, it is enough to try out successful traditional trading strategies that have been used all over the world for many years and take an interest in new products. Dozens of working strategies are available for free trial. With a small deposit ($ 10-500), you can recommend a Forex strategy for a cent account. The simplest multicurrency strategies are TrendLines and Elder's Three Screens, which are easy to master for those who are not yet experienced in the currency markets. If you are in the mood for serious work, the "turtles" strategy developed by the legendary Richard Dennis will help you develop a systematic approach to making money in Forex.
Step 4. Choose an account and start making millions
In Forex, you can open accounts of different types. For a beginner, training is primarily important. These include demo accounts, where you trade virtual money, and cent accounts, where you conduct real trades in tens of dollars. The peculiarity of the cent account is that the amount on the deposit is displayed in cents and looks more solid. The excitement of the game remains the same, but you risk small sums. It is convenient to practice new strategies on demo and cent accounts. However, you should not get too carried away with this game, because when switching to real trading, you can fall into a stupor, fearing of losing real money.
Then you will have to choose which account to open: micro, mini or classic. They differ in the minimum recommended deposit amounts. They usually start with micro accounts, where the deposit can be $ 300-1000. Some brokers do not differentiate accounts in this way and offer one type of account, commonly referred to as “Standard”. It is he who is suitable for the transition to real trading. Other types of accounts are opened by experienced traders who have been trading for more than one year.
How quickly do you start making money on Forex?
To be able to talk about any stable earnings on Forex, you need to study for about six months, and trade for a few more months. Let's say you have shown the ability to learn, grasp everything on the fly, quickly master trading strategies, have time to work with demo accounts and move on to real trading with a $ 500 deposit. With stable trading with an average profit of 20% (this is a very good indicator), you can double the amount on the deposit by the end of the fourth month. You can earn your first thousand dollars seven months after the start of trading.
If a novice trader expects to get rich quick, then he should keep in mind that with a lack of trading experience, he is likely to lose all the money that was invested in the beginning. Take your time, feel the "pulse" of Forex and the gradual growth of money in your account.