Can Forex trading make you rich?
Some facts about the Forex market
Forex is a market for currencies exchanging. Traders are those who trade currencies and earn on a difference of the rate.
This is the most liquid financial market in the world, as there is a huge need for currency exchange every day. There is no central marketplace and transactions are made through Internet networks all over the world, five days a week 24 hours a day.
That is why this sphere has become so popular and turned into the main source of income for many traders.
You can earn good money on Forex, but you need to practise a lot, follow the news and use technical and fundamental analysis. In the end, apply all this knowledge and adjust your strategy.
What do I need to start earning?
To start trading on Forex you need a brokerage company in order to transfer your deals to the interbank. Choosing a broker is a very important aspect of trading.
It must be trustworthy and have a regulation. One of the reliable brokers you can trust is JustForex which has been operating on the market since 2012 and has already gained the trust of traders from 193 countries (regulated by IFSC).
First of all, you need to open an account in order to start trading. There are several types of accounts. The most popular one is a Standard account with a minimum deposit of only $100.
Once you’ve managed it, move to the second step and download Metatrader 4. This is a platform with the help of which you will be able to perform all transactions.
Here you will watch charts, make orders and estimate the situation on the market. This is your working panel so you will constantly use the interface of this program.
You can download Metatrader 4 for free.
After completing these simple steps, you can deposit your account and start trading.
The more significant your deposit, the more chance you get to make a profit because if your deposit is too small, your chances are sharply reduced and you can lose your money after only one unsuccessful order while a deposit with a larger amount reduces risks in such a case. But you can quickly return the lost funds with the help of another good deal.
Types of orders
An order is a command to a broker to execute a transaction at the current market value.
Market Order is an order to buy or sale of a certain number of lots at the current market price at a current moment.
Pending Order – an order to purchase-sale of a currency pair in the future at a set price. The advantage of this is that a trader doesn’t need to monitor the market all the time and the order can be executed without his participation.
Stop Loss is designed to limit possible losses. It is placed at a price that is worse than the price of opening a position or the price of execution of a pending order.
Take Profit is designed to close the position to achieve the planned level of profit and is set at a price better than the price of an opening position or a price of execution of the pending order.
Types of analysis
You will need a knowledge of fundamental, and especially technical analysis.
The everyday news feed is full of messages about the economy and politics. A trader needs to choose the most important of them and correctly draw up a logical chain of his further actions taking into account this news. This is what applies to fundamental analysis.
Technical analysis is based on some patterns: the future movement of quotations of currency pairs is significantly influenced by the patterns that were in the past. Technical analysis is much easier to learn for a newbie.
You have a great chance to earn good money on a Forex market, using the whole arsenal of knowledge, trading with a reliable broker, studying the market and adjusting your strategy.
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