How Profitable Forex Trading For Beginners?

[somrat4030]

Forex Forum, Trading Ideas, and tips for beginners.​

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If you are a new investor, it's normal to ask yourself if Forex trading is profitable, given all the news regarding the risk level, the high percentage of traders losing money and the difficulties of trading on the foreign exchange market. Forex's market has maintained exponential growth since its origin and attracts more and more investors.

To start trading, you must have some basic knowledge of the currencies market. Therefore, you must try to obtain as much information regarding the market as you can to acquire acquiring knowledge and skills that will allow you to create strategies and have data that will be useful for you to improve your investments.

So, the question is, Forex trading is profitable or not?​

The answer is yes. But if you can learn properly then forex trading will be profitable for you. Forex trading success depended on your trading education, practice, knowledge, strategies, and experiences. If you have proper knowledge about forex trading then you also can make money in forex.

Here are some tips how your trading will be profitable for you.​

1. Be Disciplined

I'm sure you've read this in every trading book you've ever picked up. My definition of discipline is to determine your exit strategy before you enter the trade. As soon as you put a position on you should also enter your stop loss and stop profit orders. If you do that you will not be tempted to second guess yourself. I've seen too many traders enter a position, watch it move in their favor to their profit objective but never close the trade. The undisciplined will say 'this can go further; I don't want to take my profit now'. Once the trade does reverse they will be reluctant to close the trade until it goes back to the highs, that's when profits turn into losses. I've also seen trades move to the stop loss point and the trader will say 'I'm going to give this another 20 pips before I close it' then they say it again and again and again. The old saying on the trading desk was 'your first loss is your best loss'. Yes, sometimes waiting is the prudent decision but if you've done your homework and determined an exit strategy for both profits and losses you will be much better off in the long run.

2. Understand the Market

Prior to executing profitable strategies and putting plans in motion, it is essential that you completely understand the market and the possible risks involved in trading forex. This trading technique is mainly done online, allowing a trader to gain profits or lose money. The trade ensues by purchasing instruments in one currency and then selling it in another. These are known as currency pairs. Knowing when to invest in a particular currency pair is how you can earn online.

3. Practice through Demo-Account Option

Novices in forex trading must take their time to practice using the free demo-accounts that the majority of trading platforms provide before investing real capital. The situations created reflect that of the real forex market. Moreover, it offers an excellent chance for learners to get comfortable with currency trading, recognizing patterns in the market and looking through a variety of trading methods.

For learn more about forex trading strategies click here...

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How Much Do Forex Traders Make?​

One of the biggest advantages of forex trading is that, unlike with a traditional paycheck, there's no limit on the amount of money you can earn if you apply yourself properly. However, there's another side to that coin: you have no fixed income, and your earnings depend on a variety of factors.

And don't take this and the facts about losing traders as a discouragement — there are plenty of stories of people who entered the game with small funds and earned a small fortune. Chen Linkuy, a Chinese trader, started his work with no more than $100 — in just a couple of weeks, he made a $100,000 profit.

What is the average profit for trading on Forex?​

This is the question that every trader asks themselves when they are first faced with the world of Forex trading. There is no definitive answer but there are various parameters that must be taken into consideration. However, we can think in percentage terms by analysing the trading methods offered by the Forex market.

On average, with a long-term operation, a professional trader is able to obtain monthly performances of 5% to 7%, excluding drawdown periods, not calculating taxes and with a starting capital of around £1700.

You can learn more about forex trading at forex forum

Thank You

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[MarnieLarge]

These are valuable advice for any new trader who is planning to start forex trading. However, I would like to advise all novices to search for a reliable forex learning course online and enrol in the one that your pocket permits. That will make your trading journey smooth in the future.

 

[Unellene]

The above points are some of the best tips to get started with Forex Trading. Although it is possible to make money through Forex Trading, beginners are always advised to start with a demo account to gain knowledge first before trading on the real accounts.

 

[brentcrawford]

Beginners should know that forex trading is a great way to make money, but it’s not as easy as it may seem. In order to be successful in forex trading, you need to have a good understanding of the market and be able to make well-informed decisions.

 

[GriderGlib]

They are valuable tips that a beginner can imbibe and make good profits. But I feel that a beginner must not also over-expect from trading to gain profits. As they might lose hopes and get disheartened in case they lose the trade.

 

[kurjeg]

It's odd that such subjects may be addressed in a thread rather than in a distinct forum. These posts are plainly incomprehensible to newcomers. I judge for myself because I know how difficult it is. If you believe you can learn this subject in a single sitting, simply read on. Fibonacci Mathematical theory underpins the tools and methods. It's the fundamental premise behind joining the market using https://forexstore.com/ax-trader. Despite the fact that there are other alternative platforms available. Many are just unsuitable for individuals who do not yet understand how to operate with FX and earn money from mining, farms, and cryptocurrencies. For many, learning the terminology will be a distinct discipline to master prior to trading.

 

[Gecko Trader]

My advise is to trade in DEMO for may months and learn it the hard way. In the mean time you can copy some other successful traders on copy platforms like Ctrader Copy. I am sure you will find some strategies that suit your criteria.

 

[somrat4030]

My advise is to trade in DEMO for may months and learn it the hard way. In the mean time you can copy some other successful traders on copy platforms like Ctrader Copy. I am sure you will find some strategies that suit your criteria.

I also said that, Demo trading is very important for beginners. Because, without practice nobody can gain success.

 

[Snicket]

Great points, for sure! Just never take your trading career lightly if you really want to excel at it. The decisions are hard to make and you might have a hard time sometimes. Just keep calm and analyse the market properly before you do anything.

 

[Polakandil]

Usually, a beginner will face too many obstacles in the learning process, but experience later will give more valuable lessons to make betterment trading skill, practice in demo account indeed free of risk, but it can't give real emotion if in demo able to discipline, it is good as foundation skill later in the real trading account

 

[brendalloyd]

Beginners might not really see profits as soon as they start trading. The market is highly volatile and you will have a hard time making profits. So, just stay positive but don’t set unrealistic expectations.

 

[Kristine Christensen]

With the right knowledge and strategy, forex trading can be a very profitable venture for beginners. However, it is important to learn as much as you can about the market before getting started. This will give you an edge and help you to avoid costly mistakes.

 

[catherinacrowley]

These are great tips for a beginner. I personally feel that being a beginner one should not focus on money, instead the focus should be on learning and understanding basic concepts of trading.

 

[brunildafulton]

Knowing Forex trading basics will help beginners to understand the market and allow beginners to make better decisions. Knowledge about the market will give an edge to the beginner Forex trader.

 

[Zeitgeist]

To be blunt, forex trading is not profitable for beginners. I used to believe that I'd start making money as soon as I start trading currencies. You only realise the truth one you take the front seat instead of making plans in the background. Initial trading days are usually very difficult. You may sometimes feel that you are not made for it. You'll keep on losing your money but if you try to learn from your mistakes then you'll certainly start making money. Although it is gonna take a lot of time.

 

[somrat4030]

To be blunt, forex trading is not profitable for beginners. I used to believe that I'd start making money as soon as I start trading currencies. You only realise the truth one you take the front seat instead of making plans in the background. Initial trading days are usually very difficult. You may sometimes feel that you are not made for it. You'll keep on losing your money but if you try to learn from your mistakes then you'll certainly start making money. Although it is gonna take a lot of time.

without proper knowledge and education no one can be success in forex. I clearly explain it.

 

[somrat4030]

There is some fair advice in this post but I disagree about using demo accounts.

If you're using demo accounts you have zero emotions attached to your trading and so you're likely going to take on bigger risk than you would otherwise with a real money account.

I think advising to use a demo account is a dangerous thing, as it gives new traders a false sense of security. Trade real money with a small balance of say $1000 is the better option in my opinion. That way you'll know what it feels like to deal with a drawdown or loss from an early stage.

Many people transition from demo to real accounts and end up losing most of their capital because they're faced with trading emotions for the first time and make poor trading decisions.

In summary, I think demo accounts are a bad idea for newbies because they don't teach discipline, responsible lot sizing and more importantly, how to deal with emotions, which is arguably the toughest part of trading.

Just my opinion of course!

Ok i understand your philosophy, but if a beginner start trading without proper practice, then, he 90% loss her money in trading. I understand your thought, but demo account is a way for improving skill. I think so.

 

[louisegoodman]

The above mentioned tips are worth noting.
I believe a beginner should not keep the expectations of earning profits high initially, and should concentrate on the learning part.

 

[WalletInvestor]

In my opinion it is also important to mention risk management and setting realistic expectations - your example about Chen Linkuy sounds great, but if you aim for that kind of profit, you will end up putting yourself at an excessive risk of losing money, and that's not sustainable. Learning to manage your risks in order to avoid unnecessary losses is one of the most important pillars of long-term profitability.

 

[Thaumatology]

I think forex cannot make a beginner earn profits right away. But it can be profitable in learning for beginners. Most newbies have an opportunity to learn trading with various strategies, use the demo account and try the micro account. This opportunity should be grabbed on and taken advantage of.