How to make guaranteed money on Forex
This question “How to make money on Forex” is the first thing that worries any novice trader; the answer to it is quite complicated.
In order to become a successful trader, you will first need some time and personal practical trading experience.
Knowledge of the basics of the movement of exchange rates, namely the factors that cause changes in the price of a currency, is also important.
Anyone can make money, but for some reason, most novice traders, on the contrary, leave their money on the currency exchange, the main reason for this is the wrong trading strategy.
In this article I will try to cover the main points of trading and share a simple trading strategy, which in most cases brings quite good results.
How to make money on Forex as a novice trader, main stages
1. Getting started - the first thing you should start with is choosing a broker who will allow you to make money on Forex, and you should pay attention not only to attractive trading conditions, but also to the stability of the trading terminal and the features of triggering pending and stop orders.
The most acceptable option is if orders are triggered on the first touch, and not when the price stabilizes.
The InstaForex broker has these properties; in addition, it has the opportunity to make money on Forex even with small amounts of funds, using cent accounts, and in general it is a fairly reliable company.
When opening an account, do not forget about the bonuses that you will receive when replenishing it and immediately select their size; in our case, the maximum you can receive is up to 70% of the replenishment amount.
You will find other brokers with cent accounts at the link - http://time-forex.com/centovye-brokery
2. Technical aspects - after registration, download and install the trading platform on your computer, the best option is Metatrader 4, it is easy to use and There are many different indicators and advisors for it.
And the trading terminal itself has an intuitive interface thanks to which you can start earning money in just a few hours.
In addition, thousands of articles have been written and hundreds of videos have been made based on his work, which will help you find the best answer.
3. Trading system - then we choose a trading strategy - this is one of the most important stages, you should not immediately rush into scalping, this is the main mistake of novice traders.
Scalping trading is a rather complex strategy and requires certain skills. The simplest and at the same time the most effective is simple trend trading. To implement it, you need to install one of the trend indicators in the trading terminal, which will show not only the direction of price movement, but also the strength of the prevailing trend.
To work, select a 30-minute time period and analyze the chart of the selected currency pair.
It is better to choose an instrument with the smallest spread and pronounced movement, in our case it will be the euro/dollar and an upward trend.
The next stage will be to search for entry points into the market; the price does not move straight up, but with regular pullbacks, so we make the purchase after the price has dropped to a minimum and began its upward movement.
At the same time, monitor the trend indicator, it should warn you of a price reversal. To minimize losses, set a stop loss order at 15 points.
The deal is closed after the price goes into the next pullback, and your profit begins to gradually decrease.
You shouldn’t be greedy, because a correction can gradually turn into a trend reversal, and you will lose everything you earned. Despite its simplicity, this strategy provides an excellent opportunity to make money on Forex without having much experience in real trading.
Your profit will depend only on the dynamics of the trend and the time period of trading. 4. Taking profit – you have often seen casino players increase their bets instead of taking profits, so you shouldn’t repeat their mistakes.
For example, if with a deposit of $1000 you managed to earn $100 from one trade, immediately withdraw your profit rather than increase your trading volumes. It is advisable to maintain approximately the same deposit size. At the end of the day, analyze your transactions, preferably in writing, analyzing successful and unprofitable transactions, try to calculate the amount of funds secured so that your deposit is resistant to corrections. And most importantly, do not allow losses of more than 5% of funds from one transaction, of the amount of your deposit.
You will find additional answers to the question of how to make money on Forex in the section - http://time-forex.com/azbuka