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There are a gazillion side hustle tips and free money schemes out there, but Forex trading stand heads and shoulders above the lot. Research shows that, as at the end of 2020, the worth global forex trading markets is worth $2,400,000,000,000,000. Yes you read it right, that’s 2.4 quadrillion USD. This shows that your income potentials from forex trading is almost limitless.
Forex trading is involves speculating on prices of fiat currencies around the world with the aim of making a profit.
If you have some spare cash and you are eager to take earn a piece of this largesse from the comfort of you home, there are few steps you have to take. Like every other legitimate business endeavor, Forex trading has some element of risk. These steps will help you have to take to help you make profitable trades consistently.
Learn the basics
Contrary to popular opinion, you do not need to be a finance professional or take an MBA course to earn a healthy income from forex trading. However, you do need to learn the basic concepts, like currency pairs and the factors that influence changes in currency prices. There are many tools online that can help you learn these concepts within a few weeks. You can learn from e-books, tutorial videos or articles. Most trading platform also have beginner guides that can help you navigate the trading process seamlessly.
As a beginner you can also copy trades of more experienced traders, while you keep learning ropes.
Choose a broker
After getting familiarized with the forex trading concepts, the next step is to choose a trading platform that suits your needs. Forex is a highly specialized and regulated market. You will need to open an account with a licensed broker to make your trades. One of the prominent trading platforms is the FBS real account for experienced market players. Choosing a broker that has a user friendly platform and great customer reviews is one crucial step towards success.
Make a Plan
Like the saying goes, “he who fails to plan, plans to fail”. Forex markets are highly dynamic and volatile. A forex trading strategy is a system that a forex trader deploys to determine when to buy or sell a certain currency pair. It is important for you to have a consistent trading strategy to help you reduce the level of uncertainty in the market.
There are many trading strategies out there, such as Breakout trading, Price Action Trading, Scalping, Pips, etc. Breakout trading is one of the simplest trading strategies. It is less risky and relatively easy to execute, which makes it perfect for beginners
Tuck in Your Emotions
One of the reasons that many people run into losses while trading forex is making trades based on emotions and sentiments.
To make profitable trades, it is important that you make trading decisions strictly based on the technical and fundamental analysis of market signals as they evolve.
Conclusion
Forex market is open globally and traded 24 hours a day, five days a week. Trading currencies can be highly profitable if you remain disciplined and strategic about your trading decisions. Close out your profit positions when necessary. And when you encounter losses, you can deploy stop loss controls to help you limit your losses below a certain amount.
