If you already have a lot of capital, trading Forex is a great way to make money from home (or anywhere else, as long as you have an internet connection). With that in mind, read on as we answer some of the more common questions that will give you the big picture.
What is Forex Trading?
Forex trading (also called FX or foreign exchange trading) involves exchanging one foreign currency for another. It is one of the most liquid asset markets in the world. Profits are made based on speculation and plausible assumptions about how a particular currency will perform relative to another. All of this is influenced by several factors including the country’s economy, news and events, etc.
Does it take time to learn?
It depends on your current level of knowledge. But if you’re feeling a bit computer savvy, the learning period can last anywhere from a few months to a few years.
You will need to study the basic terms (see the section at the bottom of the page) and perhaps invest a little in your education. Once you are ready to enter the market, be prepared to take time each day to see how your trades are doing. Remember, everyone doesn’t need to be a winner to stay positive, just the majority!
How much can you expect to earn?
For obvious reasons, it depends on the amount of capital invested. But the good news is that even the average trader earns enough to live comfortably, with an average annual salary of around $ 80,000.
Ultimately, your capital, skills and education will play a key role in determining your overall earnings. Never rush without having a clue what you’re getting into, as it’s a surefire way to lose money.
What is the right strategy?
While it is impossible to cover every aspect of successful Forex trading in the foreign exchange market, below are the most important points to keep in mind.
First, always trade with tools that have your back. This will greatly increase your chances of making a winning trade. The trick is to look at the moving averages over different time frames, such as the time frame 10, 50 and 100. You can learn all of this in a course on support and resistance levels, but the key is to make your own moves. on market averages measured over a longer period to increase the degree of certainty.
Regardless of your level of forex trading knowledge, no one can trade with 100% accuracy, so it’s important to minimize the impact of a loss. So manage your assets wisely and never put yourself in a situation where a bad trade could cause you to lose all your money. In other words, think in terms of risk / reward rather than fear or greed.
Finally, don’t fall into the trap of thinking that your gear should have at least 5 screens, a dedicated computer, and several momentum indicators. A professional trader’s desk isn’t much different than the one you’re sitting on right now. As long as you stick to the basics of forex trading and don’t stray from your main strategy, you should be fine.