I want to invest in forex.pls help
What is Forex Trading?
I’ve been a Forex Trader since 2007 and an instructor since 2017.
I think I am qualified to give you an answer and also to show you the truth behind Forex Trading, so if you are ready, make yourself a cup of coffee because I’m going to write a lot 🙂
The Definition
Forex stands for Foreign Exchange, so it refers to the process of exchanging one currency into another. Why should someone do that? There are several reasons.
Think of you going on holiday to Japan. You will need to exchange your currency to get some Japanese Yen to spend in Japan. That transaction is aForex trade. You have exchanged one currency for another.
How to make money in Forex Trading?
Ok, but how can you make money in Forex Trading while sitting on your sofa, drinking a coke? You can open an account with a Forex broker
which gives you access to the currency market and you can exchange one currency with another in milliseconds.
Why would you do that? Currency rates are not fixed, they vary every minute.
Imagine that the exchange rate between the Euro and the United States Dollar is 1.15. It means that if you give 1 Euro, you get 1.15 United States Dollars.
You decide to proceed with the transaction and now you hold $1.15.
After a few hours, the exchange goes to 1.10. You can give back the $1.15 and get €1.05.
Let’s repeat the process:
- You pay €1 and get $1.15
- The dollar appreciates against the euro, the exchange rate goes down
- You give back the $1.15 and you get €1.05
At the end of this, you made a profit €0.05.
Imagine that, instead of €1, you exchanged €10,000. The process would be exactly the same:
- You pay €10,000 and you get $11,500
- The dollar appreciates against the euro, the exchange rate goes down
- You give back the $11,500 and you get €10,500.
You made a profit of €500.
So if you are good at identifying which currency is going to appreciate and which one is going to depreciate, you can make money by simply “betting” on this. This is called speculation in Finance, and it is how you can make money in Forex Trading.
How to Learn Forex Trading?
Learning Forex Trading can be extremely hard and the reason is that there are so many scammers in this business. I’ve been a trader since 2007, and trust me, I have seen disgusting things in this industry.
What should you know before starting?
Trading is very different from what many people advertise. You don’t become a millionaire overnight, unless you start as a billionaire 🙂
It’s a business and, like any other business, it takes time and effort. If you are not ready to dedicate part of your time to grow your business, you won’t have good results with it.
With patience, I managed to quit my job in 2013 and live off my income as a Forex and Stock Trader.
I can honestly say that my income is much higher than an average job here in the UK. I’m happy with my lifestyle, I work from home and I can take breaks and days off whenever I want. I also travelled around the world for almost a year in 2019, just my laptop with me in order to check my investments.
It hasn’t always been like that. In 2015, I moved to London and I got a part time job for one year, because the cost of life was much higher and I didn’t want to withdraw money from my trading accounts. I was determined to pay the rent and basic expenses only with my income from the part time job, without taking a single cent from my trading activity, so I could grow my accounts faster.
I still remember that, one day, I had less than £2 in my bank account and had to wait for the next day to get my salary. I had a £1 burger at McDonald’s for the entire day, without withdrawing any money from my trading accounts. My desire to succeed in trading and grow my accounts has always been strong, during bad and good t
