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 for a beginner trader: the main steps
1. Getting Started - The first thing you should do is choose a broker that will allow you to earn on Forex. Pay attention not only to attractive trading conditions but also to the stability of the trading terminal and the execution of pending and stop orders.
The most suitable option is for orders to be triggered at the first touch, rather than when the price stabilizes.
InstaForex offers these features, and it also allows you to earn on Forex even with small amounts of money using cent accounts. Overall, it's a fairly reliable company.
When opening an account, don't forget about the bonuses you'll receive when you top it up, and choose the amount right away. In our case, you can receive up to 70% of the deposited amount.
You can 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 has many different indicators and advisors.
The trading terminal itself has an intuitive interface, allowing you to start earning in just a few hours.
Furthermore, thousands of articles have been written and hundreds of videos have been made about 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 steps. Don't rush into scalping right away; 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 most effective is simple trend trading. To implement this, 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.
For this, we select a 30-minute timeframe and analyze the chart of the selected currency pair. It is best to choose an instrument with the smallest spread and a pronounced movement; in our case, this would be the EUR/USD and an uptrend.
The next step is to find entry points. The price doesn't move straight up, but with regular pullbacks, so buy after the price has reached its low and begun to move up. 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 pips.
The trade is closed after the price makes another pullback, and your profit begins to gradually diminish. Don't get greedy, though, as a correction can gradually turn into a trend reversal, and you'll lose everything you've earned.
Despite its simplicity, this strategy offers an excellent opportunity to make money on Forex without much real trading experience. Your profit will depend solely on the trend's dynamics and the trading timeframe.
4. Profit-taking – you've often seen casino players increase their bets instead of taking their profits, so don't repeat their mistakes. For example, if you made $100 on a single trade with a $1,000 deposit, withdraw your profit immediately rather than increasing your trading volume. It's best to maintain a roughly consistent deposit size.
At the end of the day, analyze your trades, preferably in writing, analyzing both successful and losing trades. Try to calculate the amount of your margin so that your deposit is resilient to corrections. Most importantly, don't allow losses exceeding 5% of your deposit from a single trade.
You will find additional answers to the question of how to make money on Forex in the section - http://time-forex.com/azbuka
