Tips before starting to Trade Forex
Before starting Forex trading, you need to remember that it is very high risk and you can experience gains and losses in the blink of an eye. You are just a small trader involved in a business that has transactions of up to 6.6 trillion in a day.
However, it is not impossible for you to make a profit and make money just by trading Forex.
Here I will show you how to make money trading forex
So many people think that you can't make money in forex or you can't make a living out of it. But some professional traders are making it.
The thing is knowing the strategies they use. Whether it's fundamental analysis or technical analysis or both.
Why do we trade forex?
The main goal of a trader in the forex (foreign exchange) business is definitely to make money. But for those of you who don't know how to get money from forex trading, you should first understand the basic concept of this forex trading - that in the forex market you can sell or buy the currency of a certain country with the aim of making a profit.
The profit you get from forex trading comes from the difference in the change in the initial price when you sell / buy to the latest price. Simply, you will get a profit when the price moves away from the price you previously bought / sold.
From the above point of view, forex trading activities are not much different from transactions on financial markets in general, such as stocks. For those of you who already have experience in the world of forex, of course it will be easier for you to understand this forex investment business.
However, for those of you who don't have experience in forex or you have experience but you want perfect, check out UOP FX Academy. UOP FX Academy will teach you everything about forex trading, how professional traders make a lot of money from it, good strategies that will change you forex life, a free membership to get trading signals and an auto trading software that allows you trade hands free. And you can then jump into the forex world to start getting profit from trading like others.
I recommend UOP FX Academy. and piranhaprofits.com Reason being that it is affordable to all other forex academy I have come across but piranhaprofits.com is not that affordable but you will gain more than what you paid for the course.
Different ways you can become profitable trading forex
However, there is a striking difference between transactions in the forex market with the stock market or other markets, where forex traders can still benefit without worrying about prices going up or down .
1. Buy low sell high / sell high buy low
Why can forex trading still be profitable - both when prices go up or down? Because, in forex trading, the activity of buying and selling currencies is carried out in pairs.
Example:
You buy the EUR / USD currency pair. This means, you are buying EUR currency or better known as Euro and selling USD currency at the same time.
When making a 'buy' transaction, say at that time there's an uptrend( follow the trend, the trend is your friend) and you assumed that Euro would strengthen against the USD so that the price of Euro would be higher in the future compared to the price you previously 'bought'/'long'.
If this assumption really happens, then the EUR / USD price chart will move up as we expected and you will get money from forex trading.
And the other way round for going short or selling EUR / USD
Currency Pairs
In forex trading, the instruments are always written in pairs, such as:
GBP / USD
EUR / USD
USD / JPY
AUD / USD
NZD / USD
USD / CHF
Therefore, in every forex trading transaction you make, you are actually buying one currency and selling another.
There are several things you can learn from the example of the currency pair above, where the first currency to the left of the slash ("GBP /") is called the Base Currency . Meanwhile, the second currency on the right ("/ USD") is called the Counter Currency.
2. Using leverage
Leverage, namely the use of assets and sources of funds by companies that have fixed costs (fixed expenses) with the aim of increasing shareholder profits.
Companies that use leverage have the goal of making the profits greater than fixed costs (fixed expenses).
Leverage is a level of the company's ability to use assets or funds that have fixed expenses (debt and / or special shares) in order to realize the company's goal of maximizing the company's owner's wealth.
In addition, leverage can be defined as the use of assets or funds in which to use these funds the company must cover fixed costs or fixed expenses.
When you have an account of $100 and you use the leverage of 1:1000, it now means that you are trading with $100,000. So it's like saying that your broker borrowed some money to you and you use it to get profit whereby the brokers takes a small commission. So you see how leverage works.
You will earn big with leverage but remember not to use big leverage to avoid high risk and high profit = high risk.
3. Scalping the news
Scalping the news is make a lot of money under 1-2 minutes, when they is a major news and that's when we will enter the market and make profit.
Visit forexfactory.com
And when other currency is red we don't enter a position 150mins before the news is released.
4. Using a big lot size
What is a lot? Perhaps the most frequently asked question for beginner traders. Lot is a unit of measure in the trading transaction that you make. Some traders call a lot as Quantity. And for novice traders, understanding what a lot is is something that must be learned because it will greatly help traders in making transactions.
The lot size will determine the size of the transactions carried out in the Forex market. If the trader's capital is large enough, the trader can make Forex trading transactions using a large number of lots. But you need to remember, in any investment there is a risk, where a large profit opportunity will also increase the risk received. So by trading using large lots there is a greater risk of losing or losing even though it is also followed by a high chance of getting profit.
As explained, the lot is the standard unit in every Forex trading transaction. Generally 100,000 units are the standard currency used for standard accounts, 10,000 units are for mini accounts, while 1000 units are micro accounts.
But first, before the internet developed rapidly as it is today. Forex trading can only be done by a small number of people. This is because trading requires a large amount of capital. It takes 100,000 units of currency or use a standard account to make trades. And of course this cannot be done by everyone, especially if you have limited funds.
Due to the advancement of technology, trading using limited funds can now be greatly helped. How to? Namely by using smaller lot units, namely 10,000 units for mini lot accounts, 1000 units for micro lot accounts, and 100 units for nano lot accounts.
So using big lot size can make you a lot of money within a day and can also make you loss all your money within a day.
If you want to become profitable in forex trading, visit UOP FX Academy. or piranhaprofits.com
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