If you’re here on this website then I’m sure you must have heard people’s life stories where they go from being broke to making millions of dollars a month through Forex Trading. Since it’s difficult to believe everything you see on social media, you decided to do some research on your own.
The one question that everyone interested in starting out in the Forex market has is ‘can I really earn through Forex’? To clear out all your confusions, YES you definitely can. However, the one thing that you need to keep in mind is that it will NOT happen overnight.
How to Earn Through Forex Trading?
1) Know the Basics Before You Start Trading
Sounds like something everyone would already know, right? Wrong. The most common mistake made by beginners in the Forex trading field is that they think the only way to learn is by experience. While that is not entirely wrong, trading without knowing the basics is simply a bad move.
That is why most beginners suffer heavy losses, simply because they had no idea what a ‘pip’, or ‘SL’ or ‘TL’ is and they decided to just jump in the trade. In case you are pretty new to the whole concept of trading, read up on it. Get familiar with the terms used while trading. Know everything there is to know before you jump into live trades.
There are free courses you can enroll in to get all the information you need, or you could simply look up the terms on the internet.
2) Start With a Demo Account
Once you’re familiar with all the basics and are ready to start trading, open a demo account first. Why? Because it will help you get familiar with the whole process of trading, without you having to invest real money. Although starting from a demo account is great, we’d suggest you not to linger on with the demo account for too long.
Recommended: Open Real or Demo Account
That is because while demo account trading is great in the sense that you do not need to invest actual money, trading on a demo account IS different from doing it on a live account. If you get too comfortable with the demo one, you might have trouble adapting to the actual trading tips and tricks.
3) Start Small
Never, we repeat, NEVER go all in as soon as you start trading. Like any other skill out there, Forex trading too requires a lot of practice before you start making some real dough. There’s a 90% chance that you’ll make mistakes and bear losses before you actually get the hang of how to trade for a large profit.
To make sure that you don’t suffer losses that are too heavy on your pocket (and well, your heart), always start small. Invest the minimum amount of money in the beginning. Remember, the number one rule of knowing how to earn through Forex trading is to never be greedy.
Small investment obviously means a small profit margin but it also means that the margin of loss is minimum too. Once you get the hang of Forex trading, slowly increase the amount of money you invest.
There you go, you now have the answer to your Forex beginner queries. To sum it up, Yes you can earn anywhere between $500 to well, an infinite amount through Forex trading. Once you get the hang of it, there’s no limit to how exactly much money you can make.