There are a lot of scams and get rich quick schemes being touted in the media, both on and offline. While naysayers might tell you that you can’t make money, and that you’ll certainly loose money, when investing in Forex, know that with some basic education on the Forex market and how to trade, you can make money–really good money–with Forex. Here are four tips to help you as a beginning Forex trader.
Don’t Jump In Head First: Unless you’ve lost your job, don’t quit your day job until you are making at least half of what your normal pay equals, on a consistent basis. If you are used to brining home $4000 a month, make sure that you have four to five months where your Forex trades earn you a minimum of $2000. Treat Forex like your part-time job while you learn the ropes and make your trades in the evenings, weekends or vacation days. Since the Forex market is open round the clock, you can make trades anytime. Going from part-time to full-time income probably won’t take you as long as it takes to go from $0 to a decent part-time income.
Start Small: Once people begin to see just how profitable Forex is, they tend to want to mortgage the family farm, so to say, in order to maximize their profits. This is a key reason people doubt that you can make a long term living trading Forex. Assuming you have a steady income now, spend no more than a week’s pay for your startup investment. If you have a family or people who depend on your income, you might want to be a bit more conservative. When investing it’s best to take small, steady steps rather than huge leaps if you are planning to be in it long term. As you make more and more profitable trades, you can put more money into them thereby increasing your risk and profits.
Get the Support of Your Partner: Far too many people who get into new businesses without telling or getting initial support from a partner. You really need to do this especially in a marriage, long term relationship or when your finances are combined because your partner can be your number one fan and support you through the learning stage when more losses tend to occur. On the other hand, they can also be your worst enemy if you start spending your time and money at the computer making trades when they don’t agree with what you are doing.
Use Educational Tools Wisely: Remember to treat any and all programs and Forex trading software pieces as tools, not a fast track to earning cash. Forex is part luck and part knowledge. Using the knowledge you learn will put you in a better position than someone who just relies on luck.
Follow these tips as you start making money on the side with Forex to show others that you really can make money with Forex. Remember to treat it as a business, make trades and study as much as you can on a consistent basis and a year from now you bank account could be a lot bigger!
Chad Smith is a Markham car insurance agent who spends a great deal of his spare time watching the foreign exchange markets. If you’d like to get in on currency trading you’ll need to start somewhere. There are a great deal of apps which will allow you to play the market using fake money. When you feel confident you can move up to trading with your real money. If you’re short on cash you can always reduce your expenses. One thing that many people overspand on is their car insurance. You can compare car insurance quotes at Kanetix, and often considerably reduce the operating expense of your automobile.
- Four Reasons to Try Forex Trading (forextradingsystemcentral.com)