Ultimate Guide On How To Make Money Online With Forex Trading
Forex trading is one of the most earliest method which I knew we can use to make money online with minimum effort. However after I entered into the online world, I discovered that people are using this method to ripped people off their hard earned money, as HYIP upon HYIP come and go, all of them claiming to use the money for forex trading. Just in case you don’t know what HYIP means, it simply means: High Yield Investment Programs.
However, after seeing how innocent people get ripped off by scammers online, I decide d to share with you, the best guide which I know we can use to make money online trading forex.
This editorial gives you the essentials and is the much needed ultimate guide to show you how to make money online with forex trading without actually giving you specifics.
Why give you no “specifics”?
One thing I noticed after going through several articles online about earning online trading forex, I discovered something vital, and that is most of the articles just give traders a place where they can trade and loss their money, without thinking about their readers.
However, what I would love you to note here today, is that there are legitimate/genuine companies that do forex trading, but when working online it is surely a better idea to go for the bigger, and the better sites, that guarantees us that our money won’t loss. To even make sure that you’re safe, you can even visit the nearest bank and ask them how you may use their services to trade forex online.
What Is the Meaning of Trading Forex?
Personally, I think this should have been a separate article on its own, but since am explaining everything about trading forex, I will make this short.
What is Forex Trading?
Trading forex is really simple, it’s all about “Buying foreign currency, then you should wait a while and then sell it when you have noticed that the exchange rates goes up. However, one thing you should note is that the exchange rates are always going up and down all the time. So when trading forex, you need to be extra wise and fast to make money in this Niche.
Here’s an example you would appreciate. If you want to see how the exchange rate works, then you can visit Google, then googled for the current exchange rate for your currency and another from another country.
After you have this information on your computer screen, you can look at the history of the price and you will see that it has gone up and down over the last few years.
This is the secret which most professional traders won’t want you to know, but here, am giving you the information totally FREE.
Can I Trade Forex with Paypal?
The answer is YES, but there’s a condition attached to it, so if you want to trade forex with paypal, you’ll need to play it local and have direct control over your trading, only then can you use PayPal. One thing for sure, is that Paypal is just a micro way of trading foreign currency.
You decided to add the sum of $100 into your PayPal account. For you to successfully trade forex, you will need to convert the $100 paypal fund into Yen, so you do that and keep it in your account. After a few months or years the exchange rate for Yen becomes favourable for you and you can sell your Yen for $80. The only trouble with PayPal and others payment processors such as PayPal, Payza among others is that they charge a conversion commission and that commission means that for every profit you made, they’ll always have a share.
How Can I Buy and Sell Currencies?
You can buy currency in what is called and known as “pairs” in the forex trading world. So if you go for US dollars vs. British pounds, then it will certainly look like this “US/GBP”!
Another thing you should be aware of today, is to know how a “pair” looks like and you can buy that pair in units. One US dollar gets you £0.60, so if you wanted to buy one unit of US/GBP then you will have to spend a dollar. Spend ten dollars and you get £6.00 worth of currency.
The very price of either the US currency or the British currency (GBP) may then go up and down. If there is inflation in America, then it may cost people two dollars for 60 pence in GBP, however, if you did buy them when they were just one dollar per 60 pence, you stand to better chance to making a profit. If inflation goes down in America then you stand to make a loss if you sell.
That is the simple anatomy behind trading Forex.
However, if there was inflation in Britain, then you stand a chance to lose your money, so therefore, if inflation goes the other way, then you stand a better chance to make money with your trading.
So if inflation went up in Britain, then you may need £1 to buy $1, which you could have buy at the sum of £0.60 only.
This inflation in Britain would mean you lose your money. But if It goes the other way and there was deflation in Britain, then it may cost you only £0.50 for a dollar, which will mean you can buy more dollars with your investment than when you could when you first invested the money, which is total profit.
How Can We Know Forex Trading Companies that are Scam/Fraud?
One thing I noticed about Forex, is that there are lots of websites providing us with awesome and unbelievable offers, but they’re just fraudsters websites which is just created to scam us off our hard earned Money.
SO for you to successfully sight a scamming forex trading platform, you should see how many people are recommending them online.
However, as a starter, i always advise you to go to the nearest bank and just use the bank platform for the trading. A lot of these forex scam companies can be very hard to see, because since forex is a Multi-billion company, they want to find a way to get people’s money, just follow the advice above and you can find an online mentor to show you the best platform for trading.
The truth is that, only experts can sight con websites.
One thing I always love about foreex trading, is that we can practise for as long as we want, till we get the scoop of what Forex trading is, and can then start live trading with real money.
Don’t start trading with huge amount of money, you might stand a better chance of losing it, so ensure that when you do invest, invest just a little and leave it.
If you are chanced, you can watch and you will see as the price of currencies goes up and down and you may make the decision to sell if you like, but only when it favours you. There are ways of ensuring you do not lose too much, but think hard before you use them. It is possible for currencies to take a long term dip only to recover later when a major electronics company starts in them.
According to Warren Buffet, one of the richest man on earth, don’t panic when you see your trade slipping, just relax and wait as the currency climb back. One thing I won’t advice you to do, is “panic selling”.
This is the shortest means which you can lose all your money. Most people also do this mistake too on the stock market. Losing traders are those traders who when they see that their trades is starting to slip, they’ll begin to sell their trades even if they’ll lose. But one thing I have notice, is that most times, the trade can bounce back and rise up again a week after.
SO when trading forex, don’t trade as a panic seller, do follow the rules and I’ll see you at the top.
If you have any question regarding this, don’t hesitate to use the comment form below, and I’ll reply you.