If you follow any day trader on Twitter you should have heard about forex. Videos of traders living lavishly, with little to no explanation on what it is. This article will break down what it is, and ways to make some money on it.
My Instagram is loaded with valuable investor knowledge, market news pages, and scams. One of the later being Forex.
What is Forex? Well Forex is short for the foreign exchange, a market where individuals or large brokers can trade currencies. With all asset trading there is room for profits. A few things to note, you are trading currency against each other, US dollars to Euros for example. As the Euro strengthens the value against the dollar goes up, allowing you to sell those euros for more US dollars than you bought them for.
Back to the scams… I love to investigate, I began reaching out to “mentors” who claim they will “help you quit your day job”. They show their lavish lifestyle, fancy cars and watches, all things that can be faked. Rarely do they show their actual work.
I got in touch with one…
It became clear that the service offered was to earn from students.
I’m not going to go into depth on the scams here but if your mentor cares more about appearances and signing new students… The climb to the “top club”. Most of the big scams out there have a built in you rise by growing the group, not by profiting. That is where I find a scam. Don’t get me wrong, there is no issue with bringing new people onto this opportunity, I am doing it now. The issue is when they charge crazy prices for information that is FREE.
Here is the best Forex trading advice you will get, if you’re a beginner. Let me say that again, here is the BEST and free advice for beginners. Go to baby pips and take their free course on basics of forex markets. It will help you understand exactly what you’re trading and how the trades make money. A totally free resource which gives you the opportunity to earn wealth.
Now that we have some basic understanding under our belt you should find a good broker and begin to trade on a demo account. Don’t get excited. If you really want to turn consistent profits from Forex you need to not only develop a strategy but stick to it and test it out. Trust me, you do not want your money on the line testing your trading strategy. A few weeks of a level of funds you can actually put into the market and you will not only build a solid trading foundation but also learn exactly how much earning potential the strategy can bring.
Charts are the main way Forex traders find and trade on trends and patterns. I know these can seem daunting at first glance but with a little practice and patience they become second nature.
Almost every trader uses a candle stick chart.
A chart the shows where the price opened, where it moved to in a specified time and where it closed. These candles can show a trader quickly how price is moving and if the momentum is on their side. These charts also show good amount of information on the longer level trends.
I would suggest finding the chart analysis that works for you and testing it out.
If you really are interested in making a living Forex trading I can set you up with an amazing mentor who helped me establish my trading strategy. Feel free to also ask question in the comments. My trading group offers a free Discord chat for a wide range of equities and commodities.