Make money with forex is dealing currency to make a profit and you can do everything from home, just having a computer with internet connection. The forex is a market where you can win big money, but do not be fooled by advertising that says you will double your money every month without much effort.
What Is Forex?
Before reading the tips on how to make money with forex trading will give an explanation of what the forex market, also known as Foreign Exchange or foreign exchange market. The forex is to buy and sell currencies (Euro, US Dollar, Canadian Dollar, British Pound, Yen, Swiss Franc, etc.).
In fact they do not buy or sell coins in itself, but is made the purchase or sale of the relationship between two currencies. The coins always come in pairs: EUR / USD, GBP / USD, EUR / GBP, etc.
With a trading method we can analyze the movements of a particular currency pair and make a purchase if we think will go up or make a sale if we think the currency goes down in value.
The forex have the advantage of operating in any economic climate. In the case of shares it does not happen because they tend to go down in value and volume when the economy is in worse condition. In forex we can bet on the fall or rise of a coin and make money at times when the market grows or at times when the market is in trouble.
Dealing With Risk
Before you start forex trading with real money to use the demo account where you can practice and create your trading method without risking your capital. You must learn a forex method with good risk management and must apply this method in a demo account. When you can make money on the demo account can start making real money trading!
All successful brokers have one thing in common: a good risk management. The most important thing in forex is a risk management method that is simple to apply. The difficulty is not having a good trading method but to apply this method always. Most people who start in the forex fail miserably because they play in the forex as if they were in the casino. Chances are not 50/50!
All that come from hunches, impulses or looking for adrenaline will not give profit.
The greatest enemies of a trader are two: fear and greed. The fear of losing opportunities, fear of losing money, want to earn more 5 pips when we won well, etc. When dealing with money every situation can be distilled to these two emotions: fear and greed. A good trader is one who can separate the emotions of their work. Risk management methods serve to maintain the motivation, sanity and money in the account.
The risk management method that can search in Make Money With Forex states that should never risk more than 2% of its capital on a trade and should never risk more than 8% of its capital on all open trades. With this risk management method you can lose three consecutive trades and lose less than 6% of its total capital. Most beginners enter the foreign exchange market to kamikaze and annihilate the account in 2 or 3 trades.
Lose 3 or 4 followed trades can happen to the best traders. Lost 10 straight trades can happen to a good trader. Those who apply an efficient risk management survive and win, those who do not disappear from the map.
Read more, Opening a Forex account