Can Forex Make You Money
When people earn - and I earn, when people lose - I still earn.
This is roughly how traders relate to the financial situation in the world. It doesn't matter to them whether the market goes up or down, they can get their income in any situation.
The economic difficulties in Ukraine, coupled with the spare time many have had, is the best time to understand how the forex market works, whether it is really possible to make money from it and what needs to be done. what to do for this.
This article is more for those who are thinking about taking their first steps in forex trading than for experienced traders.
 |
| image for problem "Can Forex Make You Money" |
What is Forex?
You can trade on the Forex market with currency pairs. For example, euro-dollar, dollar-yen, euro-pound, etc. You buy one of the currencies in pairs with the expectation that it will appreciate against the second. By selling the currency on time, you benefit from the change in the exchange rate - this is your income.
When a trader realizes that he has made enough and that the value of the asset may go in the opposite direction, he closes the trade. You can also close the trade if the investment is wrong and the trader starts to lose. Thus, he repaired the hole.
Also See: What is foreign exchange (forex) and how does it work?
In addition to currency, you can buy raw materials or stocks of companies with the expectation that they will increase or decrease in price. At the same time, you don't really need to have stock or merchandise. Exchange instruments also allow you to "play short". This is a fairly effective tool that provides for lending against additional repurchase obligations. A trader does not need to know all the mechanics of how it is done in practice. To use, you just need a mouse click or touch the phone screen is enough.
It is important to understand which assets will rise or fall in price. To do this, the trader analyzes the market, financial news, the behavior of other investors. Well, either he makes purchases at random or relies on intuition. However, in this case, there is not much chance to stay in the market for long.
There are a number of technical factors that make trading easier and safer. For example, you can set a trade to automatically close in adverse circumstances. Or you can “stick” with an experienced trader and copy his trades automatically. 👉Visit: "Forex AI for the Mind"
Where's the money?
Some people mistakenly think that Forex is similar to lottery. One of the arguments of such thinkers is that great income can be obtained from these activities. For example, you bet $100 that the US dollar will appreciate against the euro. Your prediction comes true and in a minute you have $120.
But at the same time, it is clear that the dollar has not appreciated against the euro by 20%. So where did the 20 dollars come from? The fact is that brokers offer clients to perform operations with a multiplier or "leverage". In practice, this means that when you place your bet, it is backed by other market participants, usually the biggest banks in the world. The multiplier can be hundreds or even thousands of times your money.
Simply put, when you buy $100, the "sponsors" add their share and as a result you have bought $100,000 and now together expect the US currency to strengthen. Thus, even a small fluctuation in quotes allows you to get tangible benefits. At the same time, the person providing the multiplier also earns, although the percentage is much lower.
The downside is that if you make a wrong forecast and instead of the dollar's growth against the euro, it starts to depreciate, the damage is solely yours to bear. The company that provides leverage never loses. As a result, your money in the forex market can both rise rapidly and quickly melt.
You can choose the size of the coefficient yourself for most brokers. Meaning, if you are not ready to take big risks, you can bet by 2 or 3, or even give up altogether.
I will not be deceived?
One of the common myths is that no trades actually take place and that brokers, instead of the actual movement of quotes in the market, show clients a "cartoon" and simply is to attract money from them.
Perhaps, if you search long and hard, you will come across scammers. But for the most part brokers do not do this. It just makes no sense. Both the broker and the "sponsor" of the multiplier make money regardless of whether your trading strategy works or not. Also, you need to be prepared that the broker will receive a commission for your various actions. For example, to withdraw money.
So the broker's goal is not to get all the money out of a few people, but to get as many participants as possible. And the advice is that they should trade for many years.
How to get started?
- From a technical point of view, getting started in the Forex market is no more difficult than understanding mobile banking. In fact, you just need to register on the website or in the mobile app. Some companies require you to download a terminal (special program) to your computer.
- You should then transfer the funds to your trading account and you can start trading. The money can then be withdrawn back to your bank card easily.
- The minimum amount required to initiate trading may vary from company to company. However, as a rule, we are talking about little money. Sometimes it can be $10 and in some cases even less.
Recommend for you:
👉Visit: "Forex AI for the Mind"
💧This program will give you the most advanced Forex signals that will never let you down
💧 ... provides traders with updated trading signals every 15 minutes on several timeframes
💧Every user will have access to information and training videos to help them grasp system, mainly on how to gain practical benefits from it. This course starts with essential trading instruction, then moves on to the automated program and explains how to understand the signals generated by the system. It may also contain expert advice, advanced tactics, and regular webinars hosted by the product's designers. This amount of knowledge is manageable and each trader can acquire a specific skill set from this training, generating huge profits.
FOREX AI FOR THE MIND
Is the crisis a good time to start?
The crisis increased market volatility. That is, the movement of quotes both up and down may occur more often during calmer and more meaningful times. Naturally, a successful investment at such a time will bring more returns. But it's also easier under these conditions to lose money.
Not everyone dares to invest their money when facing financial difficulties. But even if you don't have the money, experts say, the quarantine has given you time to find new investment avenues.
Related: Can Forex make you Rich
