Win-win strategies for trading Forex and more
Losing money on Forex is something that almost every novice trader faces.
And it’s good if you started with a small amount of one hundred or two hundred dollars, but if the deposit was tens of thousands.
After these losses, some people quit stock trading, while others begin to look for win-win strategies for making money on Forex.
But are there such options for earning money or is this just advertising of brokers and assurances of people selling their advisors?
Yes, indeed, there are strategies for trading on Forex on the stock exchange, which, with some reservations, can be called win-win.
These options do not completely eliminate losses, but reduce the likelihood of losses to almost zero.
Earnings from dividends on shares and other securities
Everyone knows that you can earn money on stocks; reports on the calculation of dividends are regularly published in financial news.
By purchasing shares of a particular company, you can earn up to 15% annual profit in ruble equivalent, which is significantly higher than interest on deposit accounts.
But even after receiving dividends, you can lose on the value of the stock itself, and the drop in price may be more significant than the amount of earnings.
How to make this option break even?
Typically, professional traders mitigate such risk by hedging, while simultaneously selling similar securities in another account.
In this case, as a rule, leverage is used; on stocks it rarely exceeds 1:5, but even this already allows you to increase the amount of earnings.
You can also make money on other securities, for example, government bonds; a comparison of interest rates on these securities is given in the article - http://time-forex.com/inv/procent-obligacii
It is clear that in this case, again, the coefficient should be taken into account inflation and choose countries with the hardest currencies.
Leverage is also used to increase profits.
Low Risk Futures Strategies
Basically, this is earnings based on seasonal price fluctuations, when it is known in advance that agricultural products purchased in the fall will certainly rise in price in the spring.
This happens almost every year, because the cost of storing them is added to the price of potatoes, wheat, soybeans or corn.
There is a risk that for some reason the product may become cheaper, but it is relatively low.
The main thing in this matter is to successfully choose an asset and make its purchase on time, and if the transaction is made before the new harvest, then sell it.
More information about futures - http://time-forex.com/info/torg-fuchers
Seasonal fluctuations in exchange rates
If you carefully study the history of the exchange rate of a particular currency, especially in the category of secondary currencies, you will notice a certain pattern.
As a rule, such currencies become cheaper at certain times of the year, and then rise in price again. For example, take the same Ukrainian hryvnia, which steadily becomes cheaper in the summer and rises in price in the fall:
The main thing here is that the selected currency is present in your broker’s terminal, since without using leverage it is unlikely that you will be able to earn much, and a stop loss would not hurt.
This strategy cannot be called completely break-even, but the risks associated with it are much lower than with conventional trading.
Using break-even strategies, you are unlikely to be able to earn as much as with scalping, but the risk of losses is ten times less.