Thanks to the development of the Internet, trading on the Forex market has become available to millions of users. However, the attempt to make money in this market for the vast majority of new traders is unsuccessful. Is there a real opportunity to make money on Forex?
Instructions
Step 1
Those who expect to improve their financial affairs with the help of Forex should forget about it right away. As with any business, trading in the foreign exchange market must be learned. It can take about a year before you even learn not to lose. Get ready for the fact that you will lose a certain amount during the training - you are almost guaranteed to "drain" your first deposits.
Step 2
If this does not scare you, and you are ready to learn, then start working on a demo account, this will allow you to learn the basic techniques of trading. When registering a demo account, leave the same amount on it with which you will start in real trading. It is best to start with about $ 20 - this amount already allows you to work normally, but not so much that losing it will greatly upset you. It is not worth investing in larger funds: if you can work with small deposits, you can then confidently manage large ones.
Step 3
To work on Forex, be sure to choose a strategy. To begin with, it can be very simple - for example, trading with three moving averages. The periods can be 5, 14, 30 or slightly different, here a lot depends on the timeframe and your preferences. A signal to buy or sell will be a reversal of the “fan” of moving averages. Additionally, you can use volume indicators.
Step 4
It is worth noting that volume indicators in Forex do not provide information on the volume of transactions as such, they only show the tick volume of transactions - that is, their number per unit of time. But you can get around this hurdle by using data from the futures market. For more information, see Trading by Volume.
Step 5
When working on Forex, it is very important not to violate the set of rules you have developed, it will be replenished with each of your mistakes. Any deviation from the rules, the desire to take risks is unacceptable, Forex immediately punishes for this. You shouldn't have excitement, you should never rush to enter the market. If you are tempted to open an order immediately, you are almost certainly wrong. Notice these moments: if something literally pushes you to take a step, then this step will lead to losses. By learning to resist such urges, you will avoid many mistakes.
Step 6
Consider the fact that every person has periods of luck and bad luck. Analyze your luck: when it falls, reduce the lot size. When luck is on your side, raise them. This will lead to the fact that during the period of failure, you will lose less than you earn during the period of luck. You can even create a special notebook or file in Excel, in which you methodically note your luck. In Excel, you can create a visual graph that will show you whether you are on the rise or fall into the "hole".
Step 7
Study Forex Laws. You must feel the market, understand the actions of its participants. Knowing how the bulk of traders will behave, you can make money on it. Remember that big players deliberately "breed" the crowd, forcing it to throw from side to side. To be profitable, you do not have to be part of the crowd - this is possible if you understand the intentions of the speculators who are shaking the market.
