To make money online by trading forex is simple and effortless to do. So far, you have basic knowledge of how the foreign exchange market works. With just your smartphone or laptop, and knowledge about forex trading, you are good to go.
Even if you are a beginner who knows little or nothing about forex trading, this article will expose you to steps on how to start making money online by trading forex.
What is Forex Trading and Market all about?
The foreign exchange market which is shortened to Forex deals with the selling and buying of Currency pairs after using different techniques and strategies to make decisions. The foreign exchange market is quite huge and is estimated to turn out over US$5 billion every day.
The forex trading market is an international market that allows everyone to trade irrespective of their certifications. This means you can make money online trading forex without even having any certificates or formal qualifications. If mastered well, forex trading can make you huge and legit money quickly.
Read Also: How to Make Money on Fiverr in Nigeria [Beginners Guide]
Below is the complete list of steps for any beginners to make money online trading forex.
Steps To Make Money Online Trading Forex as A Beginner
1. Take Training or Lessons on Forex Trading
Before you start trading forex, you should take the time to learn about how forex trading works. You should make effort to learn about different Forex trading terminologies, keywords, strategies, and analyses.
This is to reduce the risk of blowing your money up before you start making gains. To do this, you can search for courses online to take or even learn from a known and trusted expert.
2. Choose A Trusted Forex Broker
After learning forex and understanding the principles behind the foreign exchange market well enough. The next thing is to choose a good and trusted forex broker.
In case you do not know how to go about this, you can search online for reviews on different forex brokers. You can also seek the advice of the person you are learning from or ask in a forex community.
In all, you do to choose a broker, just ensure they do not have withdrawing or fraud issues. You should also consider their friendliness and customer care services. The provisions of forex trading tools like charts, financial calendars, educative materials, leverage types, and others should also be assessed.
Considering these factors will help you in choosing the right brokers for your trading.
3. Practice With Demo Account
One of the advantages of choosing a reliable forex broker is the provision of demo accounts for beginners to trade with. Some Forex brokers do provide Demo trading account for amateur forex traders to start practicing with.
A demo trading account is a virtual account similar to a real account, which is used in trading. The money in there is just for you to practice until you are good enough to start trading with your money. A demo account helps forex traders to start trading without any pressure or fear of losses.
4. Understanding Trends
With the constant practice of forex trading with a Demo account, you will be able to understand and gather more knowledge about the foreign exchange market. You will be able to figure out and know what currency pairs are favorable to sell or buy at a particular time. You will learn to identify different pairs including USD/JPY, GBP/USD, and so on.
With practice, you will understand how financial analysis, the study of the economy, and events in countries affect the forex trading market. You will be able to predict using charts and trends(Technical analysis) to know whether to sell or buy a pair.
Once you understand and master all these, it means you are ready to start trading with your money and making money with it.
Read Also: How to Make Money on YouTube in Nigeria [A Beginners Guide]
5. Start Trading With Your Capital
After mastering all the above-mentioned techniques and strategies, the next step to make money online by trading forex is to create a real account with your capital. Start selling and buying different currency pairs you deemed profitable.
Whenever you want to start trading, we advise you to focus on a currency pair at once especially if you are a beginner. Do not also use emotions in trading but your knowledge and facts. Don’t make the mistake of leaving a trade you ought to close for a long time because you think it can make you more profit. It can lead to a total loss if care is not taken.
Forex trading is a profitable online business for everyone irrespective of their education level. All you need to have is to master the act of trading forex well. We hope you find our guide on how to make money online trading forex helpful.