You surf the net daily and still meet ads saying that you "can invest $100 in the FOREX market, but you can trade tens of thousands". At some point, you are going to enter too. This is the time! Learn how to trade in Forex market with our article.
You're on the subway and you drink coffee thinking that you can risk $100 and it is not so much. On the way home you start to think, "I will trade with 100 thousand and will make fantastic profits". In your imagination, you already have a beach house and a sports car bought after you use money machine called FOREX.
Almost everything is true. Let's see:
1. You can invest $ 100 to trade thousands (depending on the broker's margin), it is true;
2. You indeed can make fantastic profits with little money.
However, you lost everything in the first 5 minutes.
Frustratingly, the first thought is that your broker actually stole the money. You think about where to call, what authority to submit your claim to, what kind of lawyer you can turn to.
Calm down and read FAQ. You begin to understand that indeed you can trade with $100 thousand of yours but losses will be large as related to the amount and will be deducted from your money.
What you need to know is that all Forex market is perhaps the most tightly regulated financial market.
Of course, as in any field, there are many scammers. However, it is very difficult to find out if a broker is ok or not. It does not cost anything to give a search in the web and check specialized forums (there are many).
The most part of brokers, however, are honest and do their job as best they can.
I think now that you learned something on your skin, you can learn some important things about earning money in the Forex market:
1. Learn to identify the trend. Surely your broker has courses or seminars for that;
2. Positions set along the upward trend (in real life, it is not necessarily better but it is recommended for the market) is the safest way to make profit;
3. Always set Stop Loss. It's like death insurance;
4. The ratio between the Take Profit and Stop Loss should not be more than 1.5.
5. Do not invest in a better position than 2% of the account value.
6. Choose licensed broker with good spreads and various payment methods and fast.
Through following my tips and using information of a high quality, you get to make money in Forex.
Remember, working with your manager account, you can receive important and useful information on how to trade in conditions as safe and effective.
The general interest of the broker is to sell you as much to gain as much in percentage. The idea that the broker is glad that you lose your money is nonsense, FOREX market is not a casino.