Learn how you can make money from currency trading, the biggest, most active market that circulates more than USD 5 trillions each day!

Currency trading or alternatively known as foreign exchange is on the rise as it promises huge returns for anyone willing to participate. However, there are a few things you should know before diving right in, my friend! First and foremost, currency trading is risky! If you see some disclaimer saying losses can exceed deposit or sort, by all means, they are dead serious about it!

 

What You Need to Know Before Engaging in Currency Trading

Due to that risky nature, you have to be very careful. So, you should learn how to trade forex in the right order and consider only trading with your risk capital. Do not, I repeat, NEVER do Forex trading a.k.a currency trading with money that you can't afford to lose. With that said, it's wise to engage in currency trading when you have accumulated enough extra savings to spare.

Second, use leverage with care! We've learned that leverage is the main reason why retail traders can enter the foreign exchange market with limited capital. However, over-leverage will lead you to overtrading, and in turn, periodically drain your account's margin.

That's why, you should use leverage only to minimize your risk. For instance, with leverage, you can actually make trading lot turns smaller by only a fraction of it (e.g. 0.1 lot). Subsequently, you will earn less from a closed floating position (pip), but what matters the most, it also reduces the risk significantly. We'll cover this detail onward, keep on reading.

Third, a good and fair Forex broker to trade with. In other words, you are partly responsible for your trading decisions, the other part is on the broker's end. In essence, the Forex broker controls all the trading terms and conditions, whether it's visible or hidden from you. Particularly when it comes to trading costs like spreads, commissions, etc.

Next, we'll learn how to open up a demo account to simulate how currency trading works!

 

How to Practice Currency Trading in Foreign Exchange Market

This is the part where y'all want it, right? But wait, it's very advisable to learn the basics of demo accounts before you commit real money to live accounts.

Done installing demo accounts? Then, it's about time we dig deeper into currency trading mechanics!

In a nutshell, currency trading a.k.a Forex trading is actually very simple. Practically, you only have to press either buy or sell button to open a position, and then wait for it to accumulate PIPs (Points in Percentage). After accumulating enough points, close the position to liquidate the profit to your deposit.

On the second mark, let me repeat it.

Step one, press either buy or sell button to open a position. Fear nothing, just follow your gut instinct.

Step two, hold that position for as long as you want it. To do so, keep your fingers away and let it run on its own.

Step three, close the position when you think you're done with it. In order to close a position, press an x button right next to the profit column in your trading terminal.

Currency Trading Guide
an open position that lasted for approximately 2 days.

Easy, right?

Yeah, it's just a demo account with virtual money! Do whatever you want with it! Fool around and see for yourself how much profit you can gain by doing random stuff!

 

What to Expect from Your Early Trades

Done goofing around with your demo accounts? How many profits have you made? Some of you might get lucky and netted hundreds of points. On another side of the coin, the other might lose the same amount of points. How can that happen? Is currency trading completely based on luck?

To be honest, as a beginner, a streak of luck is all you need to make profits in currency trading. But a professional in currency trading needs no luck to keep making a considerable profit, trades after trades. That's because they have discipline and methods to reduce risks and maximize profits.

Yes, it sounds confusing. That's why at this point, all you can expect from your demo account is seemingly random wins and losses. However, along with the time spent, you'll discover more currency trading tips and hints. Remember, perseverance is key to success here! Keep trading on the demo account until you have figured out how to make consistent profit in currency trading!

 

Are You Built For This Game?

Fairly speaking, it's quite a far journey for a beginner to be an actual currency trading pro. Do note that currency trading is the largest, most active, and liquid market anyone can participate in, particularly in the age of open Internet access. In other words, everyone (directly or indirectly) on this planet needs it to run 24/7 to keep the global market functional.

Think again, the promises of huge return isn't a lie. Truth is, it caters only to a few participants. Who are they? Let me give you a tip; it's the broker, the huge investment banks, and a few retail traders who know what to do at the right time. Are you ready to be one of them?