Everybody’s looking for ways to make more money. Most people are nonconformists and want more and more. The financial markets are an excellent opportunity for those who have savings and do not know what to invest in.
I have invested in many markets and the one that I like best is the Forex market, because it offers many opportunities every day. First of all I strongly recommend you to learn how the Forex market works and practice with a Demo account.
Maybe you are thinking about how to make money on Forex. Well, in the Forex market you can make a lot of money if you do things slowly. You will achieve financial success if you have training, control of emotions, risk management, and a trading strategy.
No successful trader will ever fully explain his strategies and methods of making money in Forex, however in this article I will explain some of the secrets to success in the financial markets. And yes, there is money to be made in Forex if you do things right.
HOW TO MAKE MONEY IN FOREX
It is very important that you know which form of investment suits you best. According to that you should prepare an investment strategy that suits you, and you can feel comfortable.
You have three ways to invest money in the Forex market, depending on the time: long term, with swing trading, on the intraday or scalping.
INVESTING IN FOREX IN THE LONG TERM
This is the simplest way to invest when you are inexperienced. You analyze the charts in the daily or weekly period of a currency pair looking for a trend, and you invest in it. These trades can be kept open for weeks or months, as long as the price fluctuates as you expect.
One thing you have to keep in mind about this way of trading is that price movements, even if they seem small, can encompass many, many pips. So I recommend that you invest small amounts and set a loss limit and a profit limit.
People with little Forex experience find this kind of trading strategy easy because they don’t need to be glued to the screen constantly. You can make your investment and take a look at the chart once a day.
FOREX TRADING WITH SWING TRADING
Investment strategies based on Swing Trading are also valid for people with little experience. Here you usually analyze the charts of a currency pair in the four-hour time frame or on a daily basis.
Swing Trading is intended to last from one day to a couple of weeks at most. In some cases, however, it can be extended over time.
The aim is to catch an already marked trend, and enter the market when the price makes a retreat. The objective is that once the retreat is done, the price continues in the previous trend.
For this type of strategy you must have some knowledge of technical analysis of the charts. I recommend you to have knowledge about price action, supports and resistances, trends, technical indicators…etc. Swing Trading strategies need to be more elaborated. They require daily monitoring.
INVESTING IN FOREX BY DOING INTRADAY OR SCALPING
This method of investment is pure adrenaline. It is not suitable for all audiences, as it requires high technical knowledge, and in the action of the price. In addition there is a very strong psychological component that not everyone is able to endure.
Strategies based on intraday are those in which an investment has to be closed on the same day. That is, they are investments that range from minutes to hours. Here, small, clear price movements are pursued, which once achieved, the trade is closed.
Traders who use this trading strategy, look at the charts with timeframes ranging from one minute to fifteen minutes. These are stressful situations, as the price fluctuates constantly. So you must be glued to the screen with every trade.
PSYCHOLOGY OF FOREX TRADING
One of the fundamental factors in trading is psychology. When you reverse the feelings they multiply exponentially. Feelings like greed or fear will disturb your mind if you do not know how to control them.
If you are on a winning streak, you must be able to control your emotions if you do not want to lose everything you have gained plus something else. Successful traders are those who, whether they are on a winning or losing streak, keep a cool head with no feelings in between.
To succeed in Forex you must learn to be cold and calculating with investments. Emotions are forbidden in this business. What will really make you money with forex, are technical skills such as excellent risk management, and an investment strategy that is a long term winner.
Applying your trading strategy strictly, and managing risk even more strictly, are the keys to success in making money on Forex.
HOW TO MAKE BIG MONEY IN FOREX
In the financial markets you can make a lot of money, just as you can lose absolutely everything. Therefore, the most important thing you need to know is that to make money in Forex you need to use your head in a consistent and reasonable way, leaving aside feelings. You can only make money in Forex if you do things right.
You have to study the behavior of the forex market. Detect patterns in price movements, and be quick to the trading signals that a currency pair gives you.
It is super important that you protect your capital with good risk management. At every market entry you should be clear about when you are going to exit a negative trade, and exit without hesitation. This is done by placing stop losses. Always be clear about your target profit and your maximum loss. Look for and choose the best currency pairs for you.
It will take you many years, but try to understand the general behavior of the forex market. If you manage to understand the reasons behind currency price movements, and the factors that influence such fluctuations, you will be on the right track for successful traders and millionaires.
To trade Forex you will need a Broker. Analyze what’s on the market. I recommend you to be a regulated broker, who has an assumable commission.
ANALYSIS TECHNIQUES FOR MAKING MONEY IN FOREX
Financial markets are often driven by news and above all by economic expectations. Forex is a market that is highly sensitive to the economic situation of countries. To analyze the market, we have two tools: Technical analysis, and fundamental analysis.
TECHNICAL ANALYSIS IN FOREX
Technical analysis is the graphical study of price action in order to identify patterns.
The goal of analyzing past price movements is to determine the probabilities of future market movements.
Technical indicators and other graphical analysis tools are used for this purpose.
Technical analysis boils down to two fundamental things in a chart:
Identifying the trend of a pair
Detect support/resistance zones by
Markets can only make three types of moves: up, down or sideways.
Prices generally move in a zigzag and, as a result, the price action has only two states:
Range: when prices zigzag sideways within a range
Trend: prices zigzagging to higher peaks (uptrend), or prices zigzagging to lower peaks (downtrend)
FOREX FUNDAMENTAL ANALYSIS
The fundamental analysis is quite complex and difficult to understand. It is based on examining the macroeconomic situation of a country and assessing it in the light of the news that is happening.
Data such as unemployment, gross domestic product, interest rates, etc. are constantly appearing in the news, and this moves the markets in some direction.
Speculating in Forex using fundamental analysis is a thing of big investment firms that have hundreds of people analyzing all these types of variables and make very long term investments. Almost no small trader bases their investment strategies on the analysis