Forex Online Trading – A Hobby Or A Profession?
Forex market is an over-the-counter market. This means that all transactions are not carried out in one place, and there are many so-called market makers on the market (market maker – “market maker”), which literally make this market. If you opened an account with a market maker, then all trading operations performed between you and the company will be real trading for you. And the company, not Forex, bears all responsibility for these operations. The main advantage of the Forex market is round-the-clock work. So, at the beginning of a trader’s career, you have the opportunity to play on exchange rates in your free time without quitting your main job. Nevertheless, sitting at the monitor all day is not worth it. It will not end in anything good (neither for your money, nor for your health). It is much better and more useful to analyze the market yourself and determine a trading strategy. Today, many companies have the opportunity to open a demo account and play for virtual money. It is impossible to lose in this case, but also to win. But you can gain initial experience: to understand the dynamics of the charts, master the client program, evaluate your analytical abilities. After playing on a demo account for three months, you will create a convenient system for yourself that will bring a steady income. Let it be virtual for now. Feeling confident in your abilities, proceed to manage your real account. Remember: play only with the means that you can afford to lose without compromising your budget! It’s a pity to lose $ 1,000, $ 100, or even $ 10 – don’t play. Statistics is ruthless: for the first time, everyone loses. On the other hand, if you are already going to earn on exchange rates, do not linger on a demo account. Most traders find the “make-believe game” harmful. Without risking, you allow yourself to place bets, which is called “from the bulldozer”, and do not seek to carefully assess the situation in the market. In my opinion, it’s much more useful to trade on “miniForex” (initial deposit from $ 100): the loss of own funds (even small ones) perfectly stimulates the learning process. Start with a deposit of $ 300-500 with a minimum change in rate. Thus, you can make mistakes for a very long time and gain valuable experience. Novice traders often look for knowledge in various books and magazines, attend numerous seminars. Theoretical preparation is necessary, but much better than spending time studying the analyzes or assumptions of other imaginary traders, learning how to analyze the market yourself and trying, trying, trying. Learning only from the mistakes of others will not work here. Will have to do their own. Do not forget about the numerous forums and blogs of other traders. Here is an example of an initial strategy for a beginner: 1) to analyze the path of price movements in the past (at least six months); 2) learn to correctly monitor what is happening in the market in the present in order to receive income in the future; 3) in the first year of trading, never add to a losing position (that is, do not buy a currency that falls in price). The basis of any strategy: observation, patience, self-control. “How much does a successful trader earn per day?” Is the most popular question. There are about the same number of answer options as there are traders in the world! Here is how my friend trader answered this question: “For example, you will set a goal to earn, so to say, 50 points. Oh well. But today you have not earned so much, and it turns out that tomorrow you have to earn 100 points? Nonsense! This is where stupid mistakes, nerves and … depression come from! A successful trader never sets specific goals to earn so much or so much. He’s only interested in one thing: he made a profit – the day went well, went off minus – prepare a debriefing, and on a new day from scratch, without bitterness and regrets. ” A bit of theory: the term “paragraph” means the smallest possible change in quotation. For example, if the current price of EUR / USD 1.2986 has changed and has become 1.2985, then there has been a decrease by exactly one point. The number of points (in other words, money) earned per day depends very much on the experience of the trader and the market situation. It will be more constructive to decide for yourself how many points you are not ready to lose. The second common question: “How long does it take to work to achieve a goal?” A goal is usually understood to mean either obtaining a certain amount or reaching a certain level of relatively stable income. Firstly, for serious earnings you will have to trade every day, and devote yourself to Forex entirely. Combining the game with any other activity will be problematic. Secondly, if you manage to earn about 30% per annum for several years, then this will be an excellent result! Perhaps trading is not your calling at all. Nevertheless, this is an interesting activity that is worth a try just for fun. Playing the stock exchange teaches you to think through every step and readiness to be responsible for your actions. Such an experience will never be superfluous.