If you’re reading this article, then you already know how difficult and costly Forex currency trading can be.
In fact, most people will tell you that comparing Forex to the stock market is like comparing the complex Japanese number puzzle, Sudoku, to a children’s coloring book. However, I’m here to tell you that this is NOT the way it is… At least, if you know what you’re doing.
Believe it or not, the Forex market can be very simple and easy to manipulate. As you continue reading, I’ll be outlining the basic process you’ll need to take to start earning money with Forex.
The Obvious First Step You Need to Take Before You Make a Dime
First things first, you’re obviously going to need to find a broker to open a trader’s account with.
That’s not so hard, right? First step done! All you’ll really need to do is fill out some paper work…Don’t be intimidated!
Remember, your broker is there to help you, and you’re paying them commissions to do so, don’t be afraid to use what you pay for! Most brokers will be more than eager to help you fill out the appropriate forms with the appropriate information. Next your application will (hopefully) be approved, and THEN you can start funding your Forex account.
What You’ll Want to Know From Your Broker BEFORE You Start Trading
You’ll want to talk to your broker about what to do with the money you want to invest in currency.
Decide on a Leverage Ratio – For example, before you do anything else you’ll probably want to decide on a leverage ratio for your broker to trade. Basically, leverage is a ratio used to measure the level of risk/reward in a trade. It’s sort of like betting…There’s 10:1, 20:1, 50:1 and even 100:1 leverage ratios that you can use in your trades.
Just remember that a higher leverage means a higher potential for loss…But it can also mean you make more money! If you’ve got enough money that you can be risky, then a high leverage is usually recommended.
Pick Currency Pairs to Focus On – Alright, now that you understand leverage and what it means for you, now we can talk about currency pairs! This is the fun part! Basically, all trades are formatted and identified the same way…Using currency pairs.
For example, in the currency pair EUR/USD, the EUR would be the BASE currency, where as the USD would be the COUNTER currency. Remember that, order is very important. In the above example, you would be measuring the European Euro in terms of US Dollars. If you were to make this trade, you would want the Euro to have a HIGHER monetary value than the US dollar.
Hopefully that makes sense.
You can pair any currency, just remember that the Base comes first, and the Counter comes second. The order is VERY important and if you mix them up it will cost you money! You won’t be trading what you think you are!
Congratulations! You now have a basic background on Forex that’s enough to get you started…Although I still encourage you to try and learn more if you can.
Warning! Do NOT Buy a Forex Trade Bot!
If you’re starting out trading Forex, then almost everyone and anyone that you talk to online will tell you to go out and buy this Forex bot, or that Forex bot…But I’m here to tell you that you’re wasting your time and money with such systems.
Because all currently ‘Forex Trade Bots’ are based on PAST trades. That means that they simply can NOT remain accurate in the long haul.
There are only 2 or 3 TOTAL systems on the market today that I would ever recommend anyone spend money on, and I’ll tell you about those now…But you have to promise to do your due diligence before you spend any money!
If you really want to get into Forex, then I really recommend that you NOT buy any of the conventional “back tested” Forex bots. They’re simply not accurate or consistent.
Is It Still Possible to Automate REAL Forex Growth?
Short answer, yes! It is! But you have to know where to go and what to do once you get there. Fortunately, I’m just the guy to let you in on the secret to automation of consistent growth.