Judul : How Much Can You Make With Forex Trading
link : How Much Can You Make With Forex Trading
How Much Can You Make With Forex Trading
Forex trading offers you the chance to realize much better returns of investment because you can have complete control over your money with forex. The market is extremely liquid and your money isn’t tied up where you have to wait forever to move it. With other forms of investing like real estate or stock investing, all of your money is tied up in a way that your risk is much more substantial, although with real estate the risk is not as bad as it is with stocks. Let’s get into exactly how much money can be made by trading forex.
What do you want?
The money you can make is going to depend on three things, the level of your investment, the level of your skill, and your ability to manage your money properly. Of course mastery over your emotions is also a great skill to have. With forex trading you can enter in at about 300.00 and control currency lots of 10.000; this is one tenth what you could control if you were using a standard account so your profit is going to be affected by this. You make money when ever the point value goes up, if it goes down you will lose money. The key is to use market trends and chart analysis to follow consistent patterns.
If you want to make let’s say; a couple of hundred dollars a week then you will probably want to begin with a nice size mini account. But your skills will still have to be sharp. What you’re going to be doing is buying lots of currency. Typically the leverage is 100-1, which is much better then the 2-1 to 4-1 leverage equities and stock trading offer you. When you buy lots of 10.000 or more each lot equals one contract.
Say for example you have a micro or mini account. You want to trade the US dollar against the euro, what you are doing is using little or more then 100.00 do buy 100 currency units of the other currency. Each dollar allows you to control 100.00. So if you invested 100.00 then that would buy you 10.000 units which would equal a contract.
Example of how you can make money
In forex trading there is something called a market order and a stop loss order. This is for your own safety to insure against loss. The loss order will stop you from losing more money then you may be willing to risk. Let’s say you buy the Euro against the dollar for 1.3455 and you set your stop loss order at 1.3425. This means you’re willing to risk losing 30 pips or 300.00.
If you want to go in the other direction then you can set a specific margin for a profit like 1 percent or higher. If this goes up from 1.3455 to 1.3490 then you would have made 35 pips which equal ten dollars a pip. This is not a long term investment either; this is a short term thing that you can do everyday.
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