Looking for another work at home opportunity? Try to be a forex trader. You can gain a lot from trading foreign exchange (forex) on currency market, from few bucks to billions a day. Unfortunately, this is also a high risk job. People says, no pain no gain. So, low risk low gain!
Forex is all about buy and sell the currency. But in reality, it’s not that simple. You need to learn far before you start this game. From the terminology to the strategy, from how to use forex software to some significant news in the domain of politic and economy. So, you know when the right time to sell or buy a currency.
Ready? Curious? Here’s four steps how you make money from forex trading…
(1) Find your broker
You should research some different brokerages. Generally, their experience speaks loud. But browse also how they treat their customers and how convincing they are. Get those impression through their customers (if you know one), online forum, the reviews from economy magazines, the broker’s website, etc. Armor yourself with knowledge about difference between a “healthy” business opportunity with a scam one.
Read their rule and agreement carefully. Including the costs for each transaction. You should also aware of how much your bank will charge to wire money into your forex account.
If you have a good feeling about it, instead of potential problems, go register and get the trading software. So, you can start to jump into forex market. Oh yes, you will need an Internet connection too.
(2) Analyze the market
To play good in forex, you must do a technical analysis by reviewing charts or historical data to forecast how the currency will move based on past events. For beginner, don’t get confused by the numbers and diagrams, just look at the ups and downs of the chart.
If a technical analysis is not enough, you should do fundamental analysis too. Observe a country’s economic fundamentals and predict the near future. It’s going to shine bright or otherwise. When you believe that Japanese economy will weaken, which is bad for the Japanese yen, then you probably want to sell yens in exchange for a currency from a country with stronger economy.
There is also sentiment analysis. Use your instinct, usually based on a trader’s experience, to figure out the mood of the market, whether it’s bullish or bearish.
(3) Buy or sell now
It’s wise to start trading forex with a demo account first. It’s like a game: no real money, only simulation. But you will learn what you should and shouldn’t do here. Once you keep on making good trades, you may go live with the real one.
Still, use only 2% of your capital. For instance, if you decide to invest EUR 1,000, put only EUR 20 to invest in the currency pair. So, you have enough money to cover the loss. Because when your currency pair goes against you and you don’t have enough money to hold it, your transaction will automatically be closed.
Losses aren’t losses until your position is closed, either by you or by system. When you invested $10 in EUR/USD and your total losses today are USD 2.5, you wouldn’t have lost money. You still have a chance to profit when the wind of change comes.
Sometimes it comes, sometimes you’ll lose bigger. That’s why you should apply stop loss mechanism to make sure you don’t suffer more than your limit.
(4) Maintain your emotion well
After all, don’t get too emotional in forex trading. Keep cool. But stay sharp and smart. Remember, 90% of day traders are failed. If you are a worrisome person, then forex (and stock market) is not your thing.
The forex market is very unstable. So, you will see ups and downs frequently. Just continue researching and sticking with your strategy. Sooner or later, you’ll gain.