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Can you get Rich by Trading in Forex

Before answering this pressing question that keep most traders awake at night. We must fully
understand what Trading in Forex is. Forex Market Foreign exchange is the process of converting a particular currency into another. This exchange is conducted for multiple reasons. Trading takes place within the forex market. Money/currencies guarantees our ability to purchase goods and services. Now one might wonder why foreign currencies would be of any use to us.

But if we wish to conduct foreign trade/businesses it becomes a definite requirement. A network of buyers and sellers exchanging currencies after determining a common price. This brings us to the question of what Forex Market is. A decentralized global market facilitating currency exchange. This market has a set hierarchy and to better understand it. I shall take you through the different organizations involved therein. At the helm of affairs are the central banks, followed by other major banks. Then come in the Electronic Brokering Services (EBS). Next in line are the average to small-sized banks. And, finally trickling down to people like you and me i.e., Retail traders.

Five reasons to invest in Forex Trading

Deemed as the biggest market in the world foreign exchange is also a global market that facilitates trading around the clock. As it trades in trillions of dollars each day, it becomes lucrative for both small and large size trading/traders. For many this is a business with extremely low investment and tremendous returns. Is Forex Trading Profitable Something that constantly riddles all beginners is how to embark upon this daunting market of FX. There are several traders to learn from and numerous platforms to exchange upon. But if one doesn’t know where to make a start, they are likely to end up in losses. And then the final question is it genuinely as profitable as it is lucrative.

Forex Trading Checklist that every Forex Trader Should Know - Business City

Many are lured in with the high returns dismissing the high volatility and most are unable to practice proper risk management. Among the sea of traders out there only a few reap considerable or constant profits. We are all consumers of social media. Here we everyday see how many of these big-shot traders have everything we desire. The fancy cars, lavish mansions, the latest gadgets, and here most of us struggle to stay away from loss. This usually depends on mindset and discipline.

Many have adopted profit-incurring trading strategies, something we could apply as well. Another thing to be kept in mind, you don’t make profits right away. Most learn from their mistakes, practice, and eventually get accustomed to the patterns of the market.

If you are a hedge fund trader or an experienced and professional trader with a substantial amount set aside for the purpose you are definitely going to make money. If one through good analytical trading strategies manages to surf the tidal waves of the market. They are likely to make a profit in the future. There are multiple ways of starting off safely in the forex market. Forex trading can be converted into a full-time job or be done as per convince. Listed below are some ways that would ensure you make no losses and only profits.

  • Learning forex is just like learning a new language or learning how to drive or swim. The sings of any valuable learning are how strongly the foundation is built. The foundation here is the BASICS. To start off we must be well versed with all the basics even the jargon. Learning the trading language is essential to our growth, ergo, our profits. For instance, what is a Lot size, indicator, how many types of traders exist, and which category you fall into. There are various apps that provide its users with all the needed knowledge pertaining to the market.

• Open a Demo Account

As a rookie, you are bound to make mistakes while you learn. But as you have real money at
stake your emotions get involved. You might at times get overwhelmed or flabbergasted looking
at the profits or losses. To curb this and also get the immersive hands-on experience of trading.
Opening a demo account is the best way to jump-start and reduce the learning curve. You can
open a demo account with a broker, there are hundreds to choose from. Practice till you are
ready to stake real money. You can select the right broker if you look for the following. Whether
or not they are registered, how many customers do they have, what benefits do they offer, how
many years of experience they hold, and lastly what sort of reviews do they have.

• There is not a quick way to success, we learn something new each day. Especially in such a volatile
market, it is important to have these two in place. Proper Risk Management and find a winning
trading strategy. This has been further simplified by Copy and Social Trading. You can replicate
and/or revamp already successful trading strategies and in cooperate them in your practice.
We might adopt the strategies a successful trader has used and get the same amount of profits.

• Along with studying the current market it is important to look at historical data and statistics.
Looking at the trade and charts of the previous year would give you an idea of what not to do.
You can easily identify the moves and their outcomes. This is called backtesting a strategy.

• Forward testing the strategy, starting with a demo account move to small amount of money.
This ensures you don’t exhaust your funds all at once.

Working in the volatile market returns and risk lurk in every nook and corner. One should know their
trading strategies, risk assessment tools, and how to use leverage to our advantage. After learning
about the best currency pairs, how to calculate profits and loss, and choosing the perfect broker for
us. We can move within the market confidently and cautiously. This would definitely take us closer
to our aim of becoming rich.

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