How to make money off of forex

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While this could be interpreted to mean that about one in three traders does not lose money trading currencies, that's not the same as getting rich trading forex. Seasoned forex traders keep their losses small and offset these with sizable gains when their currency call proves to be correct. Most retail traders, however, do it the other way around, making small profits on a number of positions but then holding on to a losing trade for too long and incurring a substantial loss. This can also result in losing more than your initial investment.

Can forex trading make you rich?

Can forex trading make you rich? Although our instinctive reaction to that question would be an unequivocal "no,” we should qualify that response. Forex trading may make you rich if you are a hedge fund with deep pockets or an unusually skilled currency trader. But for the average retail trader, rather than being an easy road to riches, forex trading can be a rocky highway to enormous losses and potential penury.

But first, the stats. A bloomberg article in nov. 2014 noted that based on reports to their clients by two of the biggest forex companies at the time—gain capital holdings inc. (GCAP) and FXCM inc.—68% of investors had net losses from trading currencies in the prior year. While this could be interpreted to mean that about one in three traders does not lose money trading currencies, that's not the same as getting rich trading forex.

Key takeaways

Many retail traders turn to the forex market in search of fast profits.

Statistics show that most aspiring forex traders fail, and some even lose large amounts of money.

Leverage is a double-edged sword, as it can lead to outsized profits but also substantial losses.

Counterparty risks, platform malfunctions, and sudden bursts of volatility also pose challenges to would-be forex traders.

Unlike stocks and futures that trade on exchanges, forex pairs trade in the over-the-counter market with no central clearing firm.

Note that the bloomberg numbers were cited just two months before an unexpected seismic shock in the currency markets highlighted the risks of forex trading. On jan. 15, 2015, the swiss national bank abandoned the swiss franc's cap of 1.20 against the euro that it had in place for three years. as a result, the swiss franc soared as much as 41% against the euro on that day.

The surprise move from switzerland's central bank inflicted losses running into the hundreds of millions of dollars on innumerable participants in forex trading, from small retail investors to large banks. Losses in retail trading accounts wiped out the capital of at least three brokerages, rendering them insolvent, and took FXCM, then the largest retail forex brokerage in the united states, to the verge of bankruptcy.

Unexpected one time events are not the only risk facing forex traders. Here are seven other reasons why the odds are stacked against the retail trader who wants to get rich trading the forex market.

Excessive leverage

Although currencies can be volatile, violent gyrations like that of the aforementioned swiss franc are not that common. For example, a substantial move that takes the euro from 1.20 to 1.10 versus the U.S. Dollar over a week is still a change of less than 10%. Stocks, on the other hand, can easily trade up or down 20% or more in a single day. But the allure of forex trading lies in the huge leverage provided by forex brokerages, which can magnify gains (and losses).

A trader who shorts $5,000 worth of euros against the U.S. Dollar at 1.20 and then covers the short position at 1.10 would make a tidy profit of $500 or 8.33%. If the trader used the maximum leverage of 50:1 permitted in the U.S. (ignoring trading costs and commissions) the profit is $25,000, or 416.67%.

Of course, had the trader been long euro at 1.20, used 50:1 leverage, and exited the trade at 1.10, the potential loss would have been $25,000. In some overseas jurisdictions, leverage can be as much as 200:1 or even higher. Because excessive leverage is the single biggest risk factor in retail forex trading, regulators in a number of nations are clamping down on it.

Asymmetric risk to reward

Seasoned forex traders keep their losses small and offset these with sizable gains when their currency call proves to be correct. Most retail traders, however, do it the other way around, making small profits on a number of positions but then holding on to a losing trade for too long and incurring a substantial loss. This can also result in losing more than your initial investment.

Platform or system malfunction

Imagine your plight if you have a large position and are unable to close a trade because of a platform malfunction or system failure, which could be anything from a power outage to an internet overload or computer crash. This category would also include exceptionally volatile times when orders such as stop-losses do not work. For instance, many traders had tight stop-losses in place on their short swiss franc positions before the currency surged on jan. 15, 2015. However, these proved ineffective because liquidity dried up even as everyone stampeded to close their short franc positions.

Can you really become a millionaire from forex trading?

There are some questions that are frequently asked by novice traders:

Among all the frequent questions, there is one question which is asked by some novice traders more often:

Can I become a millionaire through forex trading?

I have two clear answers for this question and I explain about each of them in details:

Yes, you can.

No, you cannot.

Making lots of money through forex trading is completely dependent on some special conditions.

When someone has the proper conditions, he can make millions through forex trading.

When he doesn’t have the proper conditions, he will do nothing but wasting of time and money.

What are those conditions?

You can increase your wealth and become richer through forex trading and become a millionaire or even a billionaire.

However, if you are among those who want to turn a $500 or even a $5000 account into millions, then I have to tell you that you have to be patient enough.

I am not saying that it is impossible to make millions with forex.

Anything is possible in this world.

However, you have to be patient, because it can’t be done overnight, or even in one year.

You will be faced with some challenges that finding a good broker that doesn’t cheat you is the biggest one.

Many forex brokers (market maker brokers) don’t let you grow your account consistently, because in most cases, your profit is their loss.

Forex is not a get-rich-quick scheme

It is not too easy to make a living through currency trading. Someone has to teach you the right techniques, otherwise you can’t get anywhere on your own.

It is the same with the stock trading and all other kinds of tradings and investments.

To make money consistently through forex trading and maybe to become a millionaire finally, you have to pass some important stages.

There are so many jobs that you can follow and become a millionaire.

It is not the job that has to make you a millionaire.

It is “you” who has to follow the job properly to become a millionaire.

For example, there are so many millionaire real estate agents and brokers in big cities like new york.

However, there are a lot more agents who cannot even cover their monthly expenses in the same cities.

All agents are in the same areas, have access to the same markets and customers, ruled under the same jurisdictions, use the same advertising media and… .

But, how can some of them become millionaires, and most of the others fail to have even one sale per month?

Whatever the reason is, it has nothing to do with the real estate business itself, because it is the same for all the agents and brokers.

The reason is in the agents and brokers behavior, life and work style.

Behavior, life and work style

Forex trading is like that too.

It possible to become a millionaire through forex trading, as it is possible to become a millionaire through stock trading, programming, marketing, importing and exporting, constructing, and…

The more important question is “how?”

There are two things that you have to do to become a millionaire forex trader:

2. You have to develop the trading discipline in yourself.

You can’t become rich through forex trading, without having these two at the same time.

It is not even possible to make a living without having the discipline, whether you master the trading techniques or not.

I’ve never seen even one single retail forex trader who has become able to become rich or millionaire without following the proper techniques and having the discipline it takes.

Even I’ve never seen a forex trader who has been able to make a living like this.

There is no consistently profitable and professional currency trader who doesn’t trades forex with the proper technical analysis methods.

When you have a big capital, you can trade currencies through a bank account, instead of retail brokers. But most people still have to be patient to reach this level.

And, as bank accounts are not leveraged, you will trade with more peace of mind. But you should start small at the beginning.

Those who don’t believe in what I explained above can spend some time and money on forex trading at least through having small live accounts with retail forex brokers.

I am 100% sure that they will remember what I’ve explained above, and will be back to this site after wasting lots of time and money. The reason is that most novice traders start trading with real money before they do the above two things: (1) developing proper techniques and (2) discipline.

How can you become a consistently profitable forex trader?

Unlike what most people think, it is not possible to start making money right after learning the forex trading basics and a trading strategy.

There is something very important that most people don’t consider:

To learn how to trade forex, become a consistently profitable trader and hopefully a millionaire, first you have to find a mentor who teaches you the currency trading techniques and help you to develop the discipline in yourself.

Additionally, you’d better to have an income that covers your expenses and leaves you some free time to sit at the computer and learn how to trade with peace of mind.

You can make any money through forex trading and any other kinds of trading when you DON’T HAVE TO make money and you don’t have financial problems. Therefore, having a source of income is a big help.

False forex success stories

Most people think that they can learn to make money through forex trading within a very short time, and become a full-time forex trader who makes thousands or even millions of dollars.

This is is not true at all.

There are so many false forex millionaires stories over the internet.

Be careful not to be deceived by them.

None of the real millionaires or billionaires, like george soros, have made their wealth through forex or stock trading without following strong strategies. However, they are experienced business people who make a lot of money through several sources of income they have.

Then they invest a portion of their wealth in currency, stock, real estate… markets to increase their wealth: A short term investment strategy that makes you a millionaire

This is how they’ve become millionaires or billionaires. Their increase their wealth through forex or stock trading while they have other sources of income.

Therefore, if you like to become a millionaire, first you have to have a good source of income that makes a reasonable amount of money that not only covers your expenses, but also leaves some money for your trading and investments.

Then you can start learning how to trade.

You have to keep on learning and practicing until you become a consistently profitable trader. That’s why we enable our trading students to develop a source of income too.

The hassles of following too many trading strategies

Some traders the hard way of following too many trading strategies, robots and time-frames, and sitting at the computer for several hours per day.

That is the hard way which can hardly take you to your destination.

The simpler and easier way is learning the forex trading basics, and then a simple and strong trading strategy.

Then you have to master your trading strategy through demo trading.

When you succeed to make profit consistently for 12 consecutive months at least, you can open a small live account and start practicing with it.

If you can make profit consistently for 12 consecutive months with your live account too, the way you could make profit with your demo account, then all you have to do is that you keep on trading with your live account to grow it, or adding some more money to it. But don’t make your account too big. You will be faced with lots of negative emotions when you are still new and you want to trade with a too big account.

A source of income is really good

To become a full-time forex traders who makes money consistently, you have to spend some time. I already explained it above.

If you don’t have an income currently, or if your income is not enough to give you time and mind freedom to learn forex, you should develop a source of income that covers your life and enable you to open a live account in the currency market when it is the time.

You can keep making money with your source of income until you are ready to open a trading account. If your income is enough to trade through a bank account later when you are ready to do it, it will be even better.

Trading through a bank account will have a lot more advantages compared to trading through forex brokers.

The only problem of trading through a bank account is that you have to have a lot of money because banks don’t offer any leverage.

Therefore, to become able to trade through a bank account, you have to have a lot of money already.

That is why I emphasized on having a strong source of income earlier in this article.

If you want to become a millionaire forex trader, you must have a good income and backup.

Turning a small $5000 account into a million dollar account is possible theoretically.

You can do it slowly and surely when you become a consistently profitable trader and you have enough patience. However, you have to be a patient and disciplined forex trader to do it. And, you can’t do it alone. You need the mentors technical and emotional support.

Do it the right way:

You need to become a professional trader through learning the best and most accurate technical and fundamental analysis techniques. This is the only thing that makes you a professional trader who can consistently make profit.

When they become consistently profitable forex traders eventually, they have enough money to open live accounts or even professional live forex trading accounts with the banks to trade professionally and increase the money they make.

This is how they can become millionaire forex traders while they also have some other good sources of income to support their forex and stock trading investments.

So, the answer of this question that whether it is possible to become a millionaire through forex trading is in the facts that I explained in detail above.

Be careful not to be deceived by the scam mentors or brokers. They are there to make money from your losses, not to make you a millionaire.

Fxdailyreport.Com

For beginners, the forex market can be hard to navigate. There is a lot of jargon that you have to wrap your head around in order to be able to make any reasonable profits. The problem is, it takes a lot of time to master all the crucial skills that are required to qualify as a professional. Often times, many novice traders give up without making a dime.

But do you really have to trade to make money on forex? What if there was a way to invest profitably without actually having to trade? The good news is, there is a way. It is called forex copy trading.

What is copy trading ?

As the name suggests, copy trading is a form of forex trading where you copy or replicate the trading patterns of other traders. This is a trend that emerged in the early 2000’s and has over the years proved to be a real savior for inexperienced traders. With copy trading, also known as mirror trading or sometimes social trading, you can make profits as a forex trader even with minimum skills.

The only skills you require is to understand the whole concept of copy trading, that is mostly, how to choose a good trader to follow. You should, however, keep in mind that forex trading, in general, is risky and high returns are not guaranteed. Although copy trading gives you an opportunity to make profits without investing in research and having to understand the ins and outs of forex, the risk is still there and a lot of caution is required.

In most cases, forex copy trading can backfire because of a poor choice of traders to follow. That is why it is important that you carefully analyze your potential “masters” using the stats provided by the copy trading platform of your interest to make good money.

Below are a few tips on how to find a good trader to follow.

How to find A good trader to follow

The following tips will help you land the perfect trading pro:

Discover the most followed traders

The number of followers often point to the credibility and prowess of that particular trader. If a potential professional is followed or copied by many traders, it usually means that they have consistently recorded outstanding performance.

Analyze their followers/copiers

Sometimes followers can be fabricated. That is why you should critically analyze the followers to ensure that they are real humans. Another reason for this is to ensure that the follower base is consistently growing. If the number of traders copying your potential professional grows and suddenly drops, it may mean a drop in good performance. However, if the followers are ever increasing, you should add that investor to your list.

Should have consistent monthly performance

Your search for the perfect trader should not end with the most followed. Sometimes, they might have a lot of traders copying them, but the balance between profits and losses is not promising. That is why it pays to dig deeper and unearth trading gurus who have posted good and consistent monthly performance.

Number of trades and time on a platform

Traders who have been on the platform for a long are most preferred. They are usually more experienced and know their way around trading. The number of trades conducted is also another indicator. The person you wish to follow should have done a good number of trades with consistent profits.

You might not find the perfect trader to follow, but as you gain more useful skills, you will be able to make more constructive analysis and choose wisely. The type of copy trading platform you choose also matters. A lot of seasoned traders use credible forex brokers and you will hardly see them on new platforms or those with a bad reputation.

Benefits of forex copy trading

Copy trading presents a lot of good opportunities for both those who copy others and those who are copied.

You gain invaluable trading skills from professionals you follow

There is a lot of transparency as the trading history of the trader is publicly disclosed to followers

You can make passive income without actively trading

You don’t have to understand all the aspects of forex trading

With forex copy trading, you can make good money without having to actively trade. The point is to choose the right trader to follow by carefully analyzing their profiles and utilizing the stats provided by the various platforms.

How much money can you make from forex trading?

The question of how much money you can make currency trading is a big one that is asked online quite often, so much so that I decided to write an entire 2,000+ word article on it.

See, while this question is incredibly broad, the money you can make from trading forex can be estimated depending on how much money you have, the leverage you’re using, etc.

So, how much money can you make from forex trading?

You can make anywhere from hundreds to thousands of dollars a day trading forex; the bigger your bankroll and equity, the more you can invest therefore the more profits you can reach. While there are plenty of forex traders who do very well, the reality is that most forex traders lose money.

The answer to ‘how much money can you make from forex trading’ is unlimited amounts of money, although perhaps the better question is ‘how much money will you make from trading forex?’

So, how much money can you make with forex trading?

There is no way to predict exactly how much you should make each day in forex trading. The key is to set earning goals that are realistic for your economic situation, how much time you have to invest, your skillset, etc.

Obviously, the better you get at trading forex, the more money you will make. This statement does not come without a warning; as mentioned previously (and many times on this site), most forex traders fail.

The answer to ‘how much money can you make from forex trading’ is unlimited.

Yes, most forex traders come out with negative results.

That said, there’s no reason to get scared if you are willing to put the time and effort into learning how to trade forex.

With the right resources and practice, it is entirely possible to make a full-time living solely off of forex trading (and you don’t have to be rich, either!)

People are drawn to forex for reasons such as:

Forex requires a lot less starting capital than stock trading (or other investing)

You can trade forex 24 hours a day, 5 days a week

Forex is extremely volatile, which means you have the potential to make a much greater return on your investments (compared to other financial investing)

There are a large variety of strategies and methods you can utilize to trade forex, and you will likely find one that works for you

For these reasons and more, forex is seen as an attractive option to make some money online – however, because forex is so volatile and there is an opportunity to make so much money, you can also lose substantial sums of cash.

As long as you have a realistic view of the dangers of forex trading, you can focus on avoiding these risks and achieving the success that so many others have found with currency trading.

This post will answer the following questions:

How much do forex traders make?

How much do forex traders make a day?

How much do professional forex traders make?

How much do professional forex traders make A day?

How much money can you make trading forex?

How much money do I need to start forex trading?

This article is intended to provide a practical depiction of how much the average forex trader can expect to make, and also how much professional forex traders usually make.

Also, I hope this post can put to rest some of the fantasies you may have about forex trading, thanks to the faux-marketing and forex scams out there. Unfortunately, a 20% return is not doable every single month – any system or ‘forex robot’ claiming otherwise is lying to you.

Use these answers as inspiration and goals to work towards – with the right amount of hard work and dedication, anyone can reach these levels of success.

How much do forex traders make?

The average forex trader can expect to make no more than 5% of your account size back every month.

So, if you happened to have a great month and you gain 5%, that means:

If you trade with $10,000, you made $500.

If you trade with $5,000, you made $250.

If you trade with $1,000, you made $50.

Not to worry – many great forex traders grow their bankroll over time and eventually get to a point where they have an account with hundreds of thousands of dollars.

Bill lipschutz, one of the top forex traders out today, started trading with $12,000

Ed seykota started trading with $5,000

Randy mckay started trading with just $2,000!

Becoming a successful trader is a process, not an overnight occurrence; if you aren’t coming into the forex game with heaps of money, it will take some time before you are one of the big dogs.

Obviously, how much money you can earn in forex trading varies greatly, and the amount of money you do make will change every single month – you might have a fantastic month, turning profits of 30%, just to lose 40% your next month.

This is where strategy and proper risk management comes in – although leverage in forex is great, you do have to proceed with caution if you hope to stay in the game for the long run.

Keep your risk low (especially when starting, don’t risk more than 1% of your capital ever), and make trades that have great risk/reward ratios!

How much do forex traders make A day?

If the average forex trader makes about 1% to 5% a month trading, then following this logic, this works out to returns of 0% to 0.15% a day.

The question of ‘how much do forex traders make a day’ is especially broad – while everyone likes to come out profitable every single day, this is just not how it works.

The goal is to be profitable overall, which means at the end of the month (or any span of time) you want to be up.

If you are trading long-term, you will have some bad days.

All you can do is keep going and trading according to strategy, aiming to be profitable over the long-term.

There is no set amount of how much forex traders will make in a day, although it’s not uncommon for certain traders to have daily goals they try to hit.

Now that you are familiar with how much money forex traders make and how much money forex traders make in a day, let’s take a look at how much money professional forex traders make.

How much do professional forex traders make?

Professional forex traders can make a 5-10% return on their capital monthly – the catch is that their accounts are usually huge, well over a million dollars, so that a 10% return can mean hundreds of thousands of dollars every single month.

Obviously, as with all forex trading, the returns will vary widely – even professional forex traders have off months, and then spectacular months where they make up to 50% of their capital back!

Use these big returns as motivation to keep growing your forex trading account.Use these big returns as motivation to keep growing your forex trading account.

How much do professional forex traders make A day?

While we all wish we could have as successful a day trading forex as george soros once did, this is unlikely to ever occur.

That said, there are some professional forex traders who are making heaps of money every single day (think more returns in a day then you have in your entire account!)

Speaking conservatively, a professional forex trader can expect to make anywhere from 0% to 1% of their capital.

1% of $10,000,000 is $100,000.

Obviously, these are just hypotheticals – but there are certainly some forex pro’s out there making this kind of money.

Again, use this as motivation to keep moving forward! Everyone has to start somewhere.

How much money can you make trading forex?

I hope this post gave you an idea of how much both the average and professional forex trader might make – it’s worth mentioning again that these numbers vary greatly, and I’m sure there will be some people who read this post will disagree strongly (feel free to leave a comment)!

Every forex trader uses a different forex strategy and has different approaches to trading; because of this, questions such as ‘how much money can you make off forex trading?’ are hard to provide a concrete answer for.

If there was one specific strategy for forex trading that worked, every single trader would be successful – obviously, this is not the case.

In order to reach the levels of success that many average and professional forex traders have obtained, you need to create realistic goals and have legitimate grasps of risk/reward ratio, risk management, money management, stop loss, etc.

Risk management is arguably the most important part of forex trading – this is how you stay in the forex game for years to come.

If a forex trader is making crazy 20% returns, that means they are probably risking much more of their capital then they should.

Remember, the key is long-term growth and success.

Utilizing proper risk management is how you stay afloat for years to come and is how you can live off of trading forex full-time!

How much money do I need to start forex trading?

How much money do you need to trade forex? It depends.

As I mentioned earlier, some of the most well-known forex traders today started with accounts of just a few thousand dollars.

This puts to rest the idea that you need to already be rich in order to make big enough returns on currency trading – this is simply untrue.

Not only myself but many of my friends and colleagues started trading part-time with just a few thousand dollars and grew it to accounts of hundreds of thousands of dollars.

So, how much money do you need to trade forex? As much as you have.

If you only have $500, fine – go for it. You certainly won’t make enough to go full-time, but over time you can grow it into something substantial.

That said, I do recommend having at least a couple grand – $2,000 – which I think is the sweet spot for starting trading. While this isn’t enough to quit your day job and trade the forex markets full time, this is enough to get you started and has been proven to be enough to grow into a big-time successful account.

Just make sure that however much money you’re investing in currency trading, you can afford to lose it.

If you do want a chance to make returns on your investment and not lose your money, you must take the time to learn how to properly trade forex and make profitable trades.

Learn to trade forex

Figuring out the best strategy for you is the key to trading forex successfully – if you don’t know any strategies or simply want to learn how to trade forex, definitely make sure to properly educate yourself before investing any real money into the markets.

For those who want a program that will teach you everything you need to know to get started in forex and more, go read our post on a mentorship program that is both valuable and affordable.

Also, if you haven’t already, make sure to grab our free forex trading fortunes PDF – enter your details below to get your copy sent straight to your email today!

How much money can you make from forex trading?

You can really make an unlimited amount of money from forex trading, although typically, anywhere from 1% to 10% returns on capital are expected, per month.

How much do forex traders make?

The average forex trader will usually make no more than 5% returns on their capital, per month.

How much do forex traders make A day?

The average forex trader will usually make anywhere from 0% to 0.15% returns, per day – the number varies.

How much do professional forex traders make?

Professional forex traders usually aim for 5% to 10% returns on their capital, per month.

How much do professional forex traders make A day?

Professional forex traders make up to 1% a day returns, give or take. The number varies.

How much money do I need to start forex trading?

The number varies; you can start with $100 or $1,000,000 – the more money you have, the more profit you can make.

I’m a full-time forex trader, happily making money from the comfort of my own home.

I help others find financial freedom and success with forex trading.

Making money in forex is easy if you know how the bankers trade!

How to make money in forex?

I’m often mystified in my educational forex articles why so many traders struggle to make consistent money out of forex trading. The answer has more to do with what they don’t know than what they do know. After working in investment banks for 20 years many of which were as a chief trader its second knowledge how to extract cash out of the market. It all comes down to understanding how the traders at the banks execute and make trading decisions.

Why? Bank traders only make up 5% of the total number of forex traders with speculators accounting for the other 95%, but more importantly that 5% of bank traders account for 92% of all forex volumes. So if you don’t know how they trade, then you’re simply guessing. First let me bust the first myth about forex traders in institutions. They don’t sit there all day banging away making proprietary trading decisions. Most of the time they are simply transacting on behalf of the banks customers. It’s commonly referred to as ‘clearing the flow”. They may perform a few thousand trades a day but none of these are for their proprietary book

How do banks trade forex?

They actually only perform 2-3 trades a week for their own trading account. These trades are the ones they are judged on at the end of the year to see whether they deserve an additional bonus or not.

So as you can see traders at the banks don’t sit there all day trading randomly ‘scalping’ trying to make their budgets. They are extremely methodical in their approach and make trading decisions when everything lines up, technically and fundamentally. That’s what you need to know!

As far as technical analysis goes it is extremely simple. I am often dumbfounded by our client’s charts when they first come to us. They are often littered with mathematical indicators which not only have significant 3-4 hour time lags but also often contradict each other. Trading with these indicators and this approach is the quickest way to rip through your trading capital.

Bank trader’s charts look nothing like this. In fact they are completely the opposite. All they want to know is where the key critical levels. Don’t forget these indicators were developed to try and predict where the market is going. The bank traders are the market. If you understand how they trade then you don’t need any indicators. They make split second decisions based on key technical and fundamental changes. Understanding their technical analysis is the first step to becoming a successful trader. You’ll be trading with the market not against it.

What it all comes down to is simple support and resistance. No clutter, nothing to alter their trading decisions. Simple, effective and highlighting the key levels. I’m not going to go into the ins and outs of where they actually enter the market, but let me say this: it’s not where you think. The trendlines are simply there to indicate key support and resistance. Entering the market is another discussion all together.

How to make money in forex?

The key aspect to their trading decisions is derived from the economic fundamentals. The fundamental backdrop of the market consists of three major areas and that’s why it’s hard to pin point currency direction sometimes.

When you have the political situation countering the central bank announcements currency direction is somewhat disjointed. But when there are no political issues and formulated central bank policy acting in accordance with the economic data, that’s when we get pure currency direction and the big trends emerge. This is what bank traders wait for.

The fundamental aspect of the market is extremely complex and it can take years to master them. This is a major area we concentrate on during our two day workshop to ensure traders have a complete understanding of each area. If you understand them you are set up for long term success as this is where currency direction comes from.

There is a lot of money to be made from trading the economic data releases. The key to trading the releases is twofold. First, having an excellent understanding of the fundamentals and how the various releases impact the market. Secondly, knowing how to execute the trades with precision and without hesitation. If you can get a control of this aspect of trading and have the confidence to trade the events then you’re truly set up to make huge capital advances. After all it is these economic releases which really direct the currencies. These are the same economic releases that central banks formulate policy around. So by following the releases and trading them you not only know what’s going on with regards central bank policy but you’ll also be building your capital at the same time.

Now to be truly successful you need an extremely comprehensive capital management system that not only protects you during periods of uncertainty but also pushes you forward to experience capital expansion. This is your entire business plan so it’s important you get this down pat first.

Our stringent capital management system perfectly encompasses your risk to rewards ratios, capital controls as well as our trade plan – entry and exits. This way when you’re trading, all your concerned about is finding entry levels. Having such a system in place will also alleviate the stresses of trading and allow you to go about your day without spending endless hours monitoring the market.

I can tell you most traders at banks spend most of the day wandering around the dealing room chatting to other traders or going to lunches with brokers. Rarely are they in front of the computer for more than a few hours. You should be taking the same approach. If you understand the technical and fundamental aspects of the market and have a comprehensive professional capital management system then you can.

From here it just takes a simple understanding of the key strategies to apply and where to apply them and away you go. Trust me you will experience more capital growth then you ever have before if you know how the bank traders trade. Many traders have tried to replicate their methods and I’ve seen numerous books on “how to beat the bankers”. But the point is you don’t want to be beating them but joining them. That way you will be trading with the market not against it.

So to conclude let me say this: there are no miraculous secrets to trading forex. There are no special indicators or robots that can mimic the dynamic forex market. You simply need to understand how the major players (bankers) trade and analyse the market. If you get these aspects right then your well on the way to success.

The risk of loss in forex trading can be substantial. You should, therefore, carefully consider whether such trading is suitable for you in the light of your financial condition. The high degree of leverage that is often obtainable in forex trading can work against you as well as for you. The use of leverage can lead to large losses as well as gains. Past performance is not indicative of future results.

How to make money in forex trading: A complete guide for beginners

The foreign exchange market is the world’s most liquid market, with more than 5-trillion a day exchanging hands. The market is liquid 24-hours a day, 5-days a week, opening in the evening on sunday during north american trading hours and closing at 5-pm on friday evening during the same time zone. If you are a beginner and just dipping your toe into trading the forex markets, you should consider following the market and increasing your understanding of why exchange rates move before risking your hard-earned capital.

Learn about the financial markets

The financial markets allow investors, businesses, governments and central banks a place to transact in an open market, exchanging their risks to meet their financial needs. A corporate treasurer might need to exchange profits in euros into dollars, just as a speculator believes that the EUR/USD will rise. There are thousands of reasons why exchange rates and prices moved over a short-period of time, generating noise as participants look for an optimal price to enter or exit a position.

Before you start trading, you should learn about the different types of markets available to trade, and which one you are most interested in following. In addition to trading forex, you can also consider trading commodities, indices, and shares. The best way to learn about a market is to read about why others believe it’s moving and the different catalysts that might drive the price or exchange rate in a specific direction. For example, you might start with looking for a style of analysis that is generally provided by reputable brokers such as alpari. Your goal is to see what type of analysis they offer and what type of actionable ideas come from the analysis they provide. You can also look through a broker’s education section and see if they provide information about why the markets move. In addition to looking at a broker’s education section, you can scan the markets for websites that focus on financial markets education.

Learn to do your own analysis

There are two main types of analysis that forex traders generally focus on, which include fundamental and technical analysis. Fundamental analysis is the study of macro events that will alter the course of a currency pair. Technical analysis is the study of price action, including looking at momentum, trends and reversal patterns.

Fundamental analysis

The fundamentals surrounding the forex markets is based on the interest rates markets of each of the currencies that make up an exchange rate. For example, if you plan on trading the EUR/USD you want to have a gauge of where interest rates are likely going in the eurozone as well as the united states. In general, the stronger an economy, the more likely the central bank is to raise interest rates, which help drive up market interest rates. The reverse is also the case for a weaker economy where the central bank and market forces will likely drive interest rates lower.

The best way to determine if an economy is strong is to be able to evaluate countries financial information. This could include their employment information, their GDP, as well as inflation information such as the consumer price index. Most reputable brokers will provide you with a forex economic calendar where you can see what economists expect relative to history as well as the actual release. What is important about fundamentals is that each new piece of information can alter the direction of an exchange rate. If the economic data is greater than or worse than expected, an exchange rate will move to reflect the new information.

Technical analysis

Technical analysis is the study of historical prices. Although the past is not always a predictor of the future, different changes following specific studies can give you a gauge of where prices might move in the futures. Some of the more popular technical analysis studies include evaluating momentum. Momentum is the acceleration or deceleration of price changes. If you are interested in learning about technical analysis, you can look at your broker’s education section, or follow their technical analysis forecasts. There are also several websites that will provide you with education on different types of technical analysis tools. Some of the more popular include the MACD, the RSI, and stochastics.

Find good broker

Your forex broker facilitates the execution of transactions. While this is their most important function, there are many features a broker like alpari brings to the table which you should be aware of prior to depositing funds at that broker. First, do some due diligence. Look up reviews by your prospective broker and make sure there are no red flags. Fraud alerts or issues with withdrawing funds are the most important. You also want to make sure there is efficient customer service. You do not want to frustrate yourself by finding a broker who will not answer questions.

The next step is to evaluate the platform. Does the broker have an education section or generate technical analysis forecasts? Additionally, you want to make sure that your broker offers clients a financial calendar. Additionally, you want to find out about the leverage they provide to clients. Higher levels of margin will provide you the option to generate more revenue.

Start with a demo account

Most reputable brokers will offer you real-money accounts as well as demonstration accounts. A demo account is one where you are trading paper money, not real capital. Most good demonstration accounts offer nearly all the products that are available to trade will a real-money account. The prices will likely be in real-time or close to real-time. In addition, you will have access to most of the education and forecasting information your broker provides to real-money clients. Once you feel like you’re ready for a real-money account you can make the switch from a demo account to real funds.

Summary

There are several steps you should take before you start transacting in the forex market. You need to first learn about the financial markets and the type of information you can learn about prior to trading. Try to learn about both fundamental and technical analysis. Find a forex broker that you believe is trustworthy and provides a plethora of information. Lastly, use a demo account before you begin to risk real money.

How to make money in forex: A beginner’s guide

Would you like to know how to make money in forex? That question is asked by day traders every single day.

Forex is the biggest financial market in the world. When you look at the market, you’ll find that it’s run by large corporations and day traders like yourself.

The difference between the corporations and the day traders? Only 4% of day traders make money. The others lose money and quit trading.

As a beginner trader, you’re going to need to know how you can escape the bottom 96% of traders and make it into the upper echelon of day traders.

Keep reading to learn the basics of forex and top strategies used by the pros.

What is forex?

Forex stands for foreign exchange. It’s also known as FX in trading circles. That’s how currencies from all over the world are traded.

You might have traded on forex and not even known it. Have you ever traveled outside the country? You probably had to exchange money, whether for a euros, pounds, or dollars.

That’s part of forex trading and there are $5 trillion traded every day.

When you exchange money, you sell the currency you have and you buy another currency. Everything is bought and sold in pairs.

The value of each currency fluctuates and depending on the timing of your trades, you can either make money or lose money.

For example, if you think the US dollar is going to decline further, then you can sell it now and exchange it for a currency you think will increase, like the euro. This trade will show up as USD/EUR, wince they’re in pairs.

Forex trading goals

If you want to know how to make money in forex, you have to start with your trading goals. After all, if you don’t set goals, forex is just another expensive hobby.

When you first start out, don’t set dollar amounts. Since there’s so much to master in the process, set goals according to learning different processes.

Once you get more experience, then you can set goals based on financial results.

You need a good broker

In order to start trading, you need to sign up with a broker or financial institution. They’ll have the trading platform available to make trades in forex.

When you pick your broker, you need to have 24/7 access to the trading platform. Forex is always running and trades are always being made. Remember, it’s always 5 pm somewhere.

The trading platform you choose is going to play a big role in your ability to learn how to make money in forex.

It’ll be different from trading cryptocurrency software, and there are plenty of platforms to try out. Most brokerages do have demos to test, and it would be wise try out a few before settling on one.

You’ll want to be sure that you choose a broker that offers the types of accounts you want, how you can withdraw money and what the deposit is.

Some brokers offer no deposit bonuses, where you don’t need to make a deposit, but you’ll get a small bonus if you meet certain requirements. You can find out more about that here.

Learn different forex trading strategies

Once you have your broker account set up, you’re going to want to practice and play with different trading strategies before you start trading for real. These are the most common forex trading strategies that you’ll hear other traders talk about.

#1. Analysis trading

Analysis trading is the process of looking at and analyzing data to try to predict currency trends. There are two ways to analyze data: technical analysis and fundamental analysis.

With technical analysis, you look at currency trends. If a currency has been slowly going up, you determine if it will stay on that runes or not. With this type of analysis, you assume that traders buy on emotional factors rather than data.

A fundamental analysis looks at the economic fundamentals of a country. The unemployment rates and GDP are typical indicators traders will use to see if a currency is overpriced or not.

#2. Momentum trading

With momentum trading, traders will examine the ups and downs in a currency. They’ll look at the number of trades and the price of the currency.

If a currency is trading up or down, a trader will assume that momentum will continue. If that momentum starts to shift then the trader assumes the trend will reverse.

#3. Position trading

If you want to make a long-term trade, position trading is for you. You take your fundamental and technical analyses and figure out a currency’s trend over several months or several years.

This is all about the long game. Currencies go up and down several times a day and you will if you be patient and wait through down moments where you’d be tempted to sell.

Pick your account type

When you start trading on forex, you have three account options. They are standard trading accounts, mini trading accounts, and managed trading accounts.

You’ll need to know what the risks are for each account type. Some are better in situations where you’re going to spend a lot of time trading, and others are good if you plan to invest small amounts of money on the market.

The success mindset

If you want to make money trading in the forex market, you’re going to need the right mindset for it. Anything revolving around money can be emotional for people, and it’s not uncommon for people to buy and sell solely on emotion.

How do you take the emotions out of trading? Have a system in place that you can stick to. Know how much you can trade, how much risk you can take, and how much loss you can withstand.

When you make a trade, you have to know why your strategy and goals are and stick to them.

Otherwise, you might as well be playing slot machines at the casino.

How to make money in forex

Learning how to make money in forex is one of the skills traders would love to have.

It doesn’t happen overnight, but with time and practice, you can be a skilled forex trader. You need to know the strategies in play and when to apply them.

For more great tips on making money online, check out our blog.

5 harsh realities of making money in forex

Are you sick and tired of self-proclaimed trading experts (internet marketers) telling you how easy it is to make money from forex?

You know that forex is not easy.

The problem is that most sites wont tell you how hard forex can be. In fact most sites say forex is easy. Most forex websites do not tell you the truth about forex.

Harsh reality 1: forex is never quick and easy

Most new traders think forex will be easy.

They see advertisements promising quick and automated riches with a forex robot or something equally irresistible. They dive right in blind to the dangers and they get hurt.

Big surprise….. FOREX IS NOT EASY!

In fact anybody who tells you forex is easy is lying. Check out this ad below:

Would you buy this product?

You could be a lawyer in 30 days, you could work for a prestigious law firm earning a six figure income.

You would not buy the product because you know its a lie. Getting a law degree requires half a decade of study. There is no way you can become a master lawyer in under a month.

Forex might not be as hard as law but the same concept holds true. No product is going to make you a master trader in a few weeks. No EA (forex robot) is going to make you consistent profits while you sleep. Forex just isn’t that easy!

If you are here for easy riches, got to a casino, you will have better chances there!

Harsh reality 2: most systems are useless

Most traders waste time searching for the perfect trading system.

When looking for a system the first stop is usually popular forex forums. If you see a system with great feedback and many users it must work right?

Most trading systems on popular forex forums are created by inexperienced traders. The systems may work well for a few weeks, or even for a few months, but they fail in the long run.

This is especially true of indicator based systems. Indicators are sensitive to changes in market conditions. Some indicator based systems give amazing signals in trending markets but fail in ranging markets. The problem is that most indicator based systems are not adaptable to changing market conditions. So a system that works this week might not work next week. If a trading system has not been forward tested for over a year you cannot trust its effectiveness.

If you go down the path of hunting for forex systems you have already failed. You will embark on a long, fruitless search and find nothing.

My advice is to start with the basics, learn how to read price action and how to place support and resistance areas. Once you learn those two things you will not need to find a trading system.

Harsh reality 3: demo trading won’t prepare you for live trading

Imagine a mean looking, tattooed biker approaches you. He pulls out a shotgun, points it at your chest and demands your wallet. What would you do? Chances are you would probably hand over your wallet pretty quickly.

Now imagine an scrawny little eight year old kid approaches you. He pulls out a water pistol, points it at you and asks for your wallet. What would you do? You would probably laugh.

This may sound absurd but there is a correlation. When you trade a demo account you are not using real money. So the fear and apprehension of risking real money does not impact your performance.

A demo account is like the little kid above, it is play money, you can laugh it off and move on.

A real account is like the biker above, the fear and the intimidation of trading real money impacts your actions.

Psychological factors may seem insignificant but they are very significant. Most new traders perform extremely well on demo accounts but fail abysmally on live accounts. Psychology matters and demo accounts do not prepare you for real trading.

Demo accounts do have their use. They are great for familiarizing yourself with a trading platform and learning basic trading concepts. They are also good for basic testing of a trading system.

Harsh reality 4: you need time

So many websites tell you that you can trade forex successfully with less than one hour of work per week.

The reality is that you need to invest a lot of time into becoming a profitable trader. If you can only find a few hours each week to dedicate to forex you should probably give up.

Learning to become a consistently profitable trader takes a lot of time. You need to be prepared to set aside several hours a week to study forex. According to scientists it takes 10,000 hours of practice to master something. I doubt you need 10,000 hours to become a profitable trader. However, you will need more than two hours per week.

The good news is that once you are profitable it is possible to cut your trading time down to a few hours per week. Currently I trade around two hours per day four days a week.

Harsh reality 5: adapt or die

The forex market is constantly changing. You need to be able to adapt or you will never make it.

With a constantly changing market a trader need to be able to make changes on the fly and adapt to current situations. So, a good trade knows how to adapt quickly to a changing market.

When the market throws something unexpected at you, you need to be able to analyse the best course of action and make a decision quickly.

My trading method is based on price action. Right now I concentrate almost exclusively on reversal trading. This is because since 2010 the average daily range of forex pairs has dropped. GBP/JPY used to range 280 pips per day and know it ranges 120 pips.

When markets are not ranging breakout trading becomes hard. My trading method was adapted from trading breakouts to trading reversals in 2010. When pairs start to range again I will probably adapt to market conditions and begin to trade breakouts.

A good trader needs to be ready to adapt quickly to changing markets.

So, should you bother trading forex?

Well, that is up to you. We all know that the vast majority of new traders fail. They fail because they expect no stress, fast and easy riches.

You cannot change the harsh realities above. However, you can accept them and get on with it anyway.

Trading is tough but you need to be tougher. You need to work hard and you need to persevere.

Can you make it a little easier? Yes…….

The next step

The reason I first started www.Forex4noobs.Com was to help new traders become professional traders. That is why this site is packed with stuff to help you along the road from beginner to pro. So if you want to get on the right path take a look around the site.

If you are completely new to forex you should start with or basic forex education section.

If you know the basics you should check out our free forex course. In the video course I show you many important things you wont learn anywhere else. I show you how to put together a highly effective trading plan, money management plan and trading diary. I even explain how to put together a trading strategy.

For free analysis and trade ideas check in to this blog regularly.

Finally if you want a proven trading strategy along with a private members forum where we discuss trades check out the advanced forex price action course. It is closed to new members right now but if you throw your email in I will contact you in the next few weeks about getting access.

3 things I wish I knew when I started trading forex

Trading forex - what I learned

Trading forex is not a shortcut to instant wealth.

Excessive leverage can turn winning strategies into losing ones.

Retail sentiment can act as a powerful trading filter.

Everyone comes to the forex market for a reason, ranging between solely for entertainment to becoming a professional trader. I started out aspiring to be a full-time, self-sufficient forex trader. I had been taught the 'perfect' strategy . I spent months testing it and backtests showed how I could make $25,000-$35,000 a year off of a $10,000 account. My plan was to trade forex for a living and let my account compound until I was so well off, I wouldn't have to work again in my life. I was dedicated and I committed myself to the plan 100%.

Sparing you the details, my plan failed. It turns out that trading 300k lots on a $10,000 account is not very forgiving. I lost 20% of my account in three weeks. I didn't know what hit me. Something was wrong. Luckily, I stopped trading at that point and was fortunate enough to land a job with a forex broker. I spent the next couple of years working with traders around the world and continued to educate myself about the forex market. It played a huge role in my development to be the trader I am today. Three years of profitable trading later, it's been my pleasure to join the team at dailyfx and help people become successful or more successful traders.

The point of me telling this story is because I think many traders can relate to starting off in this market, not seeing the results that they expected and not understanding why. These are the three things I wish I knew when I started trading forex.

1) forex is not a get rick quick opportunity

Contrary to what you’ve read on many websites across the web, forex trading is not going to take your $10,000 account and turn it into $1 million. The amount we can earn is determined more by the amount of money we are risking rather than how good our strategy is. The old saying “it takes money to make money” is an accurate one, forex trading included.

But that doesn’t mean it is not a worthwhile endeavor; after all, there are many successful forex traders out there that trade for a living. The difference is that they have slowly developed over time and increased their account to a level that can create sustainable income.

I hear about traders all the time targeting 50%, 60% or 100% profit per year, or even per month, but the risk they are taking on is going to be pretty similar to the profit they are targeting. In other words, in order to attempt to make 60% profit in a year, it's not unreasonable to see a loss of around 60% of your account in a given year.

"but rob, I am trading with an edge, so I am not risking as much as I could potentially earn" you might say. That's a true statement if you have a strategy with a trading edge. Your expected return should be positive, but without leverage, it is going to be a relatively tiny amount. And during times of bad luck, we can still have losing streaks. When we throw leverage into the mix, that's how traders attempt to target those excessive gains. Which in turn is how traders can produce excessive losses. Leverage is beneficial up to point, but not when it can turn a winning strategy into a loser.

So, let's see, what we have: forex trading may be profitable for hedge funds or unusually skilled currency traders, but for average retail traders, forex trading can lead to huge losses. At how to make money off of forex