Everyone knows that you can make money on Forex, but how to do it and where to start is unclear. In this article, we will try to tell you about the main 4 steps to start making money on forex.
Do not think that trading is luck and fortune, it is a real profession in the financial market. And you can play live casino and test your luck!
Remember the Main Thing
What is Forex?
FOReign EXchange is an international currency exchange market. Prices on it are formed based on an agreement between the participants and depend only on supply and demand for a particular currency.
How Do They Earn There?
If the demand for some currency falls, then this currency becomes cheaper. At the same time, some other currency is becoming more in demand, and its price is rising. It is on such fluctuations in the exchange rate that forex market participants earn money.
Sort Out the Tools
The main tool of a trader is a trading terminal. This is a special program with which a trader can enter into transactions, monitor the status of the account and earn money on exchange and over-the-counter trades.
Previously, transactions were made by phone: the trader was identified, called what he wanted to buy or sell, and then received confirmation. Now it is also possible to trade with voice, but no one does that — for too long, while the exchange rate changes too quickly. In general, a trader can do without a trading terminal, but it is extremely inconvenient to trade this way.
Terminals also allow you to:
- track the dynamics of prices for currency pairs of interest to the trader;
- receive news that may affect quotes;
One of the most popular and modern terminals is a web platform with a clear and friendly interface of MetaTrader 5, which allows you to trade on the Forex market without installing an application. It is enough to have access to the Internet from any browser and in any operating system — you can even use your phone.
To Deal With Fundamental and Technical Analysis Analysis
A trading terminal is an applied tool that allows you to open a deal, lock in profits and predict the price of a particular currency pair with a certain degree of probability in the future. The price forecast based on the extrapolation of the chart using graphical tools, figures, and indicators refers to technical analysis. The price forecast based on the processing of news and economic statistics refers to fundamental analysis.
- Technical analysis. Imagine that you are in the market. You come to the butcher shop every Saturday and you know when the fresh batch will be delivered and when there will be discounts on leftovers. In the foreign exchange market, everything is the same — only instead of a clipping there will be a currency pair, instead of a queue there will be a stock glass where you can find out the trading volume, and instead of events there will be changes on the chart.
Technical analysis assumes that history repeats itself: if event A led to event B, then it is quite possible that if A arises again, then situation B. It is considered that technical analysis works well in the short term — from minutes to a week.
- Fundamental analysis. Let’s go back to the comparison with the market again. Do you remember what happens to the prices of buckwheat when there are any global events in the country? It’s getting more expensive. Many grandmothers who bought cereals, having heard word of mouth about the upcoming price increase decided to invest in the product based on fundamental analysis. It’s the same in the forex market.
Choose a Forex Dealer
Even when you have downloaded MetaTrader 5, sorted out the support levels, and read all the news, you will not be able to enter the market on your own. To do this, you need a Forex dealer.
