What if Forex? Forex (foreign exchange) is the international interbank currency exchange where everyone can buy or sell currency. It has a high impact to world economy, because this is where market currency rate forms and major banks regulate this very rate with buying and selling foreign money. However, you probably wonder whether you can earn money with Forex, don’t you? Actually, it’s quite easy to answer the question – but tough to give prove to this answer. After all, if one says that Forex is a scam just because of own 100 $ loss, brokers and investors insist on the fact that profits can be gained by everybody. So, let’s make it all clear.
You may think I've already answered this question. Yes and no. There is official and realistic version. Furthermore, two forexes exist, but it's not widely known.
I am to explain it for you.
Interbank relations are not like this. And so, Forex has nothing in common with them. Brokers, however, have certificates for "accepting currency rate bets". Such activity is not controlled by government. That's why many fraud-companies emerge. And after their breakdown, it turns they're registered in offshore and it's impossible to reach the management.
Surprised, aren't you? Another nuance: really, there are two foreign exchanges. The first one is for banks and investors having sufficient deposits. And traders cannot be on that exchange because they can't even afford the least bet there. And the second exchange is by far more approachable. But it gives no guarantees.
If you think that after previous info the answer is "no", you're wrong.
Though, Forex is a casino, it doesn't mean you can't earn at it.
In contrast to the usual casino, you place your bets not on random events but on real currency rates fluctuations. Because charts of real Forex and minor traders' one are mostly same...
Actually, brokers often manipulate people. If they earn with lost money, it's logical broker companies want people to waste their deposits. That's why so-called "marketmakers", working there, can change real Forex charts. For example, they create a false price uptrend movement - thus, people will promptly buy according to the crowd instinct; and then send the price as market goes - downtrend. Traders suffer losses - brokers are in profit.
But it never means you can't earn a cent here. Despite of widespread opinion, brokers do not create personal charts - they make them for everyone. And if you are not led by that crowd, having studied how to analyze the market without any distraction by false movements, you will succeed in gaining good money.
Besides, some non-indicator trading systems are built on marketmakers' laws.
So, trading with them, you will see where you can be fooled and place bets vice versa.
As you can see, it's possible to earn at Forex. But you should recognize main principles for that. Some of them are known already, and further you will meet tips to help you understand all other rules about earning at foreign exchange.
1. You should understand that Forex is not brokers' sites and posters tell about. Actually, Forex is a great casino where you can win. If you get this and who gains profits, you can have a chance to earn yourself.
2. Crowd instinct is traders' fault which is the reason of losses at Forex. If you face a difficult market situation or cannot make a decision, don't call friends or come to trading forums. This way, you will know the crowd opinion which is almost wrong because of strong brokers' crowd control. It can be so that mock-up "experts" of such forums are those brokers leading you to the wrong decisions. By the way, there is a good trading strategy: look how most do and do vice versa.
3. Do not pay much attention to experts' opinions and rumors. They are often alike. Words of mouth hinders you in making good decisions and right thinking - thus, doesn't let you earn. Keep in mind: if someone is an expert and can make a rate forecast, they won't share their opinions on the Net but work as the Chief of National Bank or simply earn big money.
4. Forex is the risks. But they may be insured. Place StopLosses and TakeProfits at every bet, do not make enormous bets - do not waste your stash. Don't wait for fast great profits, otherwise you will lose all your money and won't come back at Forex. When get experienced, you'll be able to take risks and even engage all-ins.
5. Those who take loans for earning at Forex are potential bank slaves and victims of Debt Recovery services. You must realize that you can wither gain or lose money at foreign exchange. But good for you if personal stash is wasted; bad for you when loan money is lost and somehow must be returned to a bank. Moreover, having wasted the loan, you will try to pay it off and borrow friends' money. Losing these money, you will make forecasts not for rates but for your remaining life duration. It's not that awful, but you will get in a debt-trap - not so pleasant, uh?
6. The last tip: never give up when failed. Experience proves that a trader loses money at the beginning. And the most important thing is to save something for loss and keep the motivation. Standing for a couple of months, you can count on good profits in future.
Along with specific economical knowledge, traders must be psychologically strong. They shouldn't be vulnerable to emotions, afraid, under depression, etc.
If you are hot-tempered or frequently stressed, sort your psychology and character out firstly and only then come to exchange. Most mistakes are made because of emotions such as feat, ultra-confidence, apathy and even uncontrolled joy. In fact, the ideal trader is a robot. And you must learn to be like that...for a while, of course.
Can you earn at foreign exchange? Yes, surely! But remember yet another tip: though I mentioned forex is a big casino, do not perceive trading as a game and do not rely on luck. Trading is labor not for everyone. So you don't play the market - you work with it.
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