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Forex as a mean of income in hard times

10.05.2020 12:52:54 am
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Forex as a mean of income in hard times

The global crisis of 2020 was quite predictable. And virtually every state has already developed mechanisms to "soften the fall". But the coronavirus had its own way: it forced us to stay at home, closed businesses and borders, brought thousands of businesses to the brink of bankruptcy, and created soaring unemployment around the world. And if you are not sure that you will be able to save your job and standard of living after you leave the quarantine, it's time to think about creating a new source of income. For example, start trading on Forex.

 

 

Is it possible to earn money on Forex?

This is probably the most discussed and "mystical" market of all existing ones. It has been working since 1972, but gossip about it is still going on in the network and in real life. Some players claim that it is as unpredictable as a casino. Others silently earn money and even help others get a good yield. The reason for this ambiguity of opinion is a number of factors:

  • Low start. Many brokers offer to start trading with 100, and sometimes with 10 dollars. This threshold is available to almost everyone, so many rush head first, without having studied the laws of the market;
  • Lack of knowledge for most traders. They "take risks" while an experienced trader analyzes the situation in detail, relying on technical and fundamental analysis. That's why everyone has different results;
  • Fraud. Weak and decentralized regulation of the interbank market allows fraudsters and scamers to deceive inexperienced traders regularly. Therefore, before you deposit real money to your account, check the broker's reputation and reviews on the network;
  • Excitement. The desire to win back, excessively high stakes and shattered nerves – these phenomena occur even in experienced players. And the market does not tolerate mistakes.

Therefore, if you want to earn money on Forex, then you need to take it seriously. To study its players and the laws, to get acquainted with technical analysis, and earnings prospects in general.

Advantages of Forex trading

A small entry threshold is not the only thing that attracts people to Forex. After all, there is plenty of "big fish" - investors with a big name, investment and hedge funds, private capital managers. And the reason for this is the special opportunities of this market:

  • High yield. In part, it is provided by a high leverage – up to 1:1000, which allows you to increase the profitability of the transaction a thousand times. High speed also plays a role – there are no investments for months or years, most traders trade at intervals of 15 minutes to 1 day;
  • Possibility of algo trading. Brokers generally do not prohibit the use of automatic and semi-automatic expert advisors. And this allows you to earn even with very poor knowledge of technical analysis;
  • Stable earnings regardless of the market movement direction. You can make good money on Forex even in times of crisis, when the price of assets decreases;
  • Abundance of information. Forex earnings are full of courses and videos, and you can find the answer to almost any question on the web;
  • Trust management and other options. Even if you decide not to trade on your own, you can always find a trader to follow or deposit money to a PAMM account. In this case, you can just wait for a more experienced player to earn a profit for you. The minus of trust management in Forex is only in the high fee for the services of professional traders. By the way, having gained trading experience and stable profit, you will be able to start earning money yourself.

All these features have helped some people make a fortune in a short time. A typical example is the Russian trader Elena Pryakhina, who in 2013 increased her deposit by 14,000% in just 11 days. Taking into account the fact that she managed not only her own money, but also other people's capital from a PAMM account, the amount turned out to be very significant and exceeded $1 million.

Even more famous Forex record holders are Chen likui, who earned $ 247,000 in a month, and Larry Williams, who received more than $2 million in a couple of months. USD.

Of course, these are record numbers. But with a reasonable approach, every trader is able to provide himself with bread and butter, and sometimes with black caviar. Much depends on the starting amount, the choice of strategy and psychological stability of the player.

Working as a trader: advantages and disadvantages

It is the impressive records and ease of start that excite beginners. Therefore, let's be Frank and talk about the features of working as a trader, the advantages and disadvantages of this profession.

Advantages:

  • Working remotely. Moreover, mobile terminals allow you to trade from anywhere in the world, even when you are standing in traffic or riding a taxi;
  • The complete absence of supervision. Only you can define your work day and tasks;
  • Forex works around the clock. Therefore, you can trade in any convenient time. The main thing is to choose the right currency pair. After all, when the stock exchanges close, its activity decreases;
  • Additional revenue opportunities. Becoming an experienced trader, you can provide services of trust management and copying of transactions, which will bring additional passive income.

And yes… You can start training today. Just select a broker and open a demo account. Only with positive results can you start trading real money.

Disadvantages:

  • Absolute freedom. Lack of work discipline always generates laziness, malfunction of the biological clock and "loss in space". Therefore, you will have to stick to at least some sort of schedule;
  • Necessity of training. Do not think that you will start earning from the first transaction, without having the slightest idea about the mechanisms of the market. Of course, it is possible to rely completely on an automatic expert advisor. But to choose a reliable one, you will have to have at least some understanding of technical analysis and how the program works;
  • Psychological instability. It is difficult to name a more nerve-racking job. After all, you actively manage your money in the full sense of the word. Moreover, you can not only earn, but also lose your entire deposit in a short period of time.

As you can see, even remote work without a boss and with a high profit potential has its drawbacks. Therefore, the trader must be sober-minded and psychologically stable. Flexibility of thinking is also important. After all, sometimes old strategies stop working and you have to adjust them or look for new options.

I want to become a trader! Where do I start?

The first thing to do is to choose reliable allies: a broker and an adviser. Your non – trading risks depend on the quality of the first one, and the quality of your decisions depends on the second one.

Broker: how to distinguish a decent company from scammers

First of all, give up freebies. If a broker promises you not only the execution of orders and connection with liquidity providers, but also a large initial bonus, low spreads and support of a personal analyst, you should think: how does it cover such high costs? When choosing a company, be sure to pay attention to such factors as:

  • History of work A "young" broker is a risky one. It is possible that this is a fraudster who once again changed his name and entered the market one more time;
  • License. It is quite expensive, which confirms the seriousness of the company. But not all licenses are equal. For example, IFSC is located in an offshore zone, which carries certain risks. But the English FCA or the Australian ASIC have great authority. These companies strictly control brokers and always protect the interests of customers;
  • Types of account. All modern brokers that can ensure the security of client funds offer segregated deposits in European banks. Many of them additionally insure clients' accounts against non-trading risks;
  • Spreads and trading conditions. Forex is a market of quick decisions and multiple speculations. Therefore, it is crucial how much the broker will deduct for the transaction. Sometimes, earning a few dollars on the order, you just can't get any profit.
  • Technology for conducting transactions. The best option is ECN or NDD. These technologies imply direct communication with liquidity providers without processing the request by the "internal kitchen". This guarantees maximum speed and the absence of the phenomenon of drawing fake charts, which scammers are famous for.
  • Pay attention to such a factor as the presence of partners. Large dealing centers always cooperate with well-known banks and hedge funds – this is a direct evidence of the broker's authority.

Do not be lazy and search for reviews of the company on the web. They are the best way to tell about its attitude to customers and decency. Of course, there is not a single company in the financial sector with a completely clean reputation, but the abundance of negativity in the network should be a danger signal for you.

Choosing a broker, do not seek to immediately open a deposit and risk your hard earned money. First, register a demo account and use it for training and testing. Only a full practice on a virtual account and understanding of the market mechanisms can guarantee you a positive result.

Choosing an adviser

Undoubtedly, it is very important to learn the basics of technical and fundamental analysis. But given the fact that dozens of books have been written on them and many videos have been filmed, it is not possible to study all the information. In addition, the recognition of technical analysis figures comes only with experience. Newcomers are often unable to even determine the direction of the trend. And, perhaps, this is the first thing to learn. In the rest, you can get help from expert advisors - special programs that already have one of the technical analysis mechanisms built-in.

The most suitable options for beginners will be:

  • Trend advisors. They indicate the direction of the trend, moving along which you will earn steadily. They also report the end and change of trends, which allows you to close the position in time;
  • Indicator advisors. They pick up certain market signals and inform you about the right time to open a particular position;
  • Scalping advisors. Their work is always based on the detection of one of the technical analysis figures, which becomes a signal to open a position for a short period of time. Using these robots, be prepared for high-speed decision-making.

Expert advisors allow you to start trading before you plunge into the depths of complex economic and technical terms. In fact, they provide the basis for a good start on the principle of Agile – here and now. And you can refine your strategies and learn as you earn money.

Forex is a great opportunity to earn money, which is not missed by any major investor. But at the same time, you should always thoroughly assess the risks, do not fall into a passion and follow the planned strategy of action.

 

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