Part I, money from forex.

Money from forex


Commander in pips: excellent! You’ve done well! For now, don’t pay attention to the buttons that you’ve said “don’t understand them” - limit price, stop price, route, type, GTC, part and others.

Best forex bonuses


Part I, money from forex.


Part I, money from forex.


Part I, money from forex.

We will talk about them in later chapters. And now just tell me, how do you understand the double quoting? Bid – this is like on auction. The participants call the bids for some goods. The better bid will win. So, bid price is a quote, that broker gives you for base currency. This is the price that broker wishes to buy at, other words that he agrees to pay for base currency.


Part I. Where does the money come from in FOREX?



Commander in pips: ok, son, now we are shifting to the trading process directly.



Commander in pips: well, there is still a long way to that moment, son. I’m not saying that “we start to make trades”. I’ve just said that we now turn to trading process education.


Commander in pips: you’re absolutely right with that. Besides, all things that we are starting to discuss have absolutely practical importance.


Commander in pips: very well.


As we’ve already discussed, FOREX is a market where you exchange one currency for another. In other words, you buy one currency for another one (i.E. Selling the other currency). In this sense, the trading process is absolutely the same as on the other markets – stocks, bonds, real estate. When you buy something, you pay money and expect that this asset will increase in price. So as on FOREX – buying a particular currency, you expect that it will increase in value compared to other currency that you’ve sold, i.E. Paid for the currency that you’ve bought. We’ve already touched on this topic lightly in part 1 chapter 2 and 3. Now let’s see how a common transaction looks on FOREX:


Typical transaction:


1. Assume that current GBP/USD rate is 1.5500. And you intends to buy 10 000 GBP. The question is: how much USD you have to pay for 10 000 GBP?


Commander in pips: absolutely right, by the way – 10 000 units of currency – is that a standard lot or not?


Commander in pips: correct.


As we’ve already discussed, FOREX is a market where you exchange one currency for another. In other words, you buy one currency for another one (i.E. Selling the other currency). In this sense, the trading process is absolutely the same as on the other markets – stocks, bonds, real estate. When you buy something, you pay money and expect that this asset will increase in price. So as on FOREX – buying a particular currency, you expect that it will increase in value compared to other currency that you’ve sold, i.E. Paid for the currency that you’ve bought. We’ve already touched on this topic lightly in part 1 chapter 2 and 3. Now let’s see how a common transaction looks on FOREX:


2. Now, assume that after some days have passed, the GBP/USD rate has changed to 1.60. And you wish to exchange 10 000 GBP, that you’ve received during initial transaction, back into US dollars. The question is: how many USD will you get from this reverse transaction?


Pipruit: I suppose it would come to 10 000*1.60 = $16 000.


Wait a minute! – there is a profit right here! It looks like – we’ve paid $15 500 on the initial transaction buying 10 000 GBP and got back $16 000 on the reverse transaction for the same 10 000 pounds – our profit is 500 bucks!​


Commander in pips: that’s right – here is how the market works and where your profit is coming from. In fact you’ve calculated all the necessary transactions by yourself. It’s not so difficult, right?


Commander in pips: in fact it’s not so awful, because we will spend a lot of time in later chapters learning about risk management and an appropriate trading plan that will allow you to control losses and escape wrong trades. But now you must understand that FOREX is not the game at all. If you’re air-headed and lack discipline – you’re dead fiscally…


Pipruit: I will try to learn hard to understand all things perfectly and do not lose money. By the way, where does this 500 bucks disappear to?​


Commander in pips: well, the money does not disappear. It becomes a profit of your counterparty in this trade. Money does not disappear anywhere and does not appear from nowhere. It is always on the market, and just changes hands. That’s all.


Commander in pips: ok then. Now we can say that any exchange rate just shows the price of one currency in terms of paying for it in another currency. It is simply the ratio of value of one currency to another.


Commander in pips: well, the placement of USD in pair was historically based. There is no hidden pattern in it. I just can tell you that in the currency futures market pairs such as JPY/USD, CHF/USD exist, compared to USD/JPY and USD/CHF that we have on FOREX.


The second part of your question is much more important. And here is the rule: the primary placed currency that stands before the slash (/) calls “base currency”, the secondary, placed after the slash, one calls “currency payable, quote currency or counter currency”. Both currencies have different functions.


Important note:
according to ISO 4217 international three-letter code of the currencies involved. It means that each currency pair constitutes as an individual trading product and is traditionally noted XXXYYY or XXX/YYY, where XXX and YYY. The first currency (XXX) is the base currency that is quoted relative to the second currency (YYY), called the counter currency (or quote currency). Historically, the base currency was the stronger currency at the creation of the pair. However, when the EUR was created, the european central bank mandated that it always be the base currency in any pairing.


Now let’s tie together such notions as “lot size”, “unit of currency”, “base currency” and “quote currency.


1. Base currency calls in such way, because it’s the basis for any transaction. When you buy or sell, it means that you buy or sell the base currency. Also, the fluctuation of the exchange rate directly shows the appreciation (rate increasing) or depreciation (rate decreasing) value of the base currency relative the quote currency.


2. Exchange rate always shows the number of units of the quote currency per unit of base currency and lot size in turn shows the number of units of base currency:


- if you would like to buy, the rate shows how much units of the quote (second placed) currency you should to pay for 1 unit of the base currency.


- if you would like to sell, rate, in turn, shows how much units of quote currency you’ll get for 1 unit of the base currency.


3. You should “buy” the pair if you think that the base currency will appreciate compared to the quote currency. If you believe that it will depreciate, rather, then you would “sell” it.


Now let’s discuss such terms as:


LONG and SHORT positions


When you’ve already come to decision about what you would like to do – buy or sell, just remember some terms that will help you understand what other traders are saying.


If you intend to “buy” (other words buy base currency and sell quote currency), it means that you count on the rising value of base currency and would like to sell it back later at a higher price. Traders call this as “going LONG” or “taking LONG positions” . Other words BUY=LONG .


If you intend to sell , rather (sell base currency and buy quote currency), you count on decreasing of the value of basis currency, then you can buy it back at a lower price. This kind of action is called “going SHORT” or “taking SHORT positions”. Other words SELL=SHORT .


Commander in pips: ok, I’ll show you this on the chart…


Commander in pips: you’re absolutely right – in a “short” trade you make money on a decreasing of the rate, in a “long” trade – on its increasing.


Commander in pips: oh yes, don’t worry too much about it. A growing market (prices rising) is often named as a “bull market” , a falling one as a “bear market” . So, very often, opening “long” positions can also be called opening “bullish” positions . A “short” one is named as “bearish position” .


And the last small topic for today –


How to read the quote board?


Ok, look at the picture below. This is a very typical quote board of a typical FX broker – what can you tell me about the data that it shows?


Pipruit: let’s see. Well, I see quotes for different pairs. Bid price and ask price. Looks like we’ve discussed them earlier, but I forget all the details. These prices are different. I assume that the color stripe shows dynamic of the pair through the trading day – green line means appreciation of the rate, i.E. Base currency, red line – depreciation, yellow means flat or near flat price action.


EXAMPLE OF A BROKER’S QUOTE BOARD


Pipruit: in the table below the quote board I see different windows.


- “lots (1 lot=10K)” means that 1 lot equals 10 000 units of base currency (not 100 000, as usual);


- some windows I do not understand – limit price, stop price, route, type, GTC, part and others.


- but I see easy way to open trade – “buy USD/DKK” button, and look – “short USD/DKK” button. That is what we’ve just discussed!​


Commander in pips: excellent! You’ve done well! For now, don’t pay attention to the buttons that you’ve said “don’t understand them” - limit price, stop price, route, type, GTC, part and others. We will talk about them in later chapters. And now just tell me, how do you understand the double quoting?


EXAMPLE OF A BROKER’S QUOTE BOARD


Commander in pips: you are wrong. It’s vice versa. You have to keep in mind that these quotes belong to broker. So, bid price is the price at which broker wants to buy base currency for quote currency. The ask price – is price at which broker wants to sell the base currency. It’s very easy to remember.


Bid – this is like on auction. The participants call the bids for some goods. The better bid will win. So, bid price is a quote, that broker gives you for base currency. This is the price that broker wishes to buy at, other words that he agrees to pay for base currency.


Ask (or offer price) – broker asks you to pay this price or offer you to pay. This price is that he agrees to sell at.


Just remember, that quote board belongs to broker, hence, these quotes are the prices at which BROKER buy or sell, not you. What does it mean for you?


Pipruit: let’s see. If bid is a price that broker agrees to pay per unit of base currency – this will be the rate that I will have to sell at .


The same as ask price is a price that broker asks me to pay for 1 unit of base currency. So this will be the price that I will have to buy at .​



How much money can you make from forex trading – 2020 guide


Millions of people across the globe are trading to earn higher profits. If you are a trader, then forex trading is a common term for you. It is the best way to make vast amounts of money by trading in foreign exchange. The most significant advantage of forex is low fees as compared to others. Both beginners and experienced traders can buy or sell currencies with high profits.


No doubt that you can earn an ample amount of money through trading forex. It is important to learn how to make it. If you want to achieve significantly, then you must trade hard. Check out forexstore to start forex trading. In the following write-up, know the amount of money you can earn via trading forex exchange. There are many factors to earn and calculate money won in trading forex. Let’s begin.


1. Trade more


Many individuals are addicted to trading, like gambling. They buy and sell foreign exchange frequently to earn profits. If you think of trading once and get plenty of amounts, then you are wrong. You have to trade more to collect a significant amount. Now, you might be thinking that there are also chances of failure. Is it best to invest money repeatedly? You must invest more to trade more.


Due to higher chances of wins, you can risk your shares again and again in trading forex. When you trade more, the winning probability is quite high. A beginner can risk with time and circumstances, but an experienced trader must not lose the opportunity at all.


2. Managing risk


Risking huge amounts is one of the trading schemes to get high returns. Remember one thing that there are also possibilities of losing massive amounts. You must trade carefully because it eventually affects your account of trading. Before trading forex, you need to create a strategy with positive output.


Suppose if you are getting $10,000 in your account per year by trading $1000, then it will not be the same each year. You can earn more considerably than expected. Try to trade more in some years to get higher profits. It will not affect your account, and in the end, a trader can count on his massive earned money.


3. Money extraction from your trader’s account


You can operate your trading account for buying or selling foreign exchange. The amount will be stored in your account, and you can either trade more, withdraw or keep it there for adding more interest. Every person earns money to enjoy a satisfying life with luxuries and comfort. Make sure that you debit the required money from your account.


It is essential to keep a certain amount as savings for more trading. The added compound will generate more amount, and later, you can get more money out of it. Therefore, it is a good deal of saving amount for the future. Many traders prefer to do such things for better money management.


4. Determine your expectancy


Trading is about risking money. You can determine the expectancy factor by analyzing your performance while trading. Suppose if you are continuously risking your money, and you are getting profits 2 or 3 times, then you are not a good trader. But sometimes, you have an excellent winning rate by getting profits in the initial trading session.


You need to join the winning and losing rate together to know about your future profits and loss. You can easily create different methods for trading if you determine your rate of expectancy. It will help you in earning money via forex trading efficiently.


5. Trading risk is dependent on currency pairs


An experienced trader is aware of different currency pairs. You can lose some amount while trading a currency pair. A trader must know the current currency rate and then buy or sell it. You need to estimate the winning and losing trade to get enough profits. If we calculate the win rate of the trader, then you must find out the difference between the profitable and loser trades.


The win rate is quite less in case of no or fewer commissions. There is a considerable return on the profit without affecting any previous records. The profit from trading on various currency pairs is different. Make sure that you analyze the current rate before investing your money.


6. Calculate profit from forex trading


There is one way to know the amount of earning money by trading forex. You can calculate all the potential earnings. Before that, you must know certain things about your yearly profits, trading amount, earnings, buying, and selling currency assumptions. It is easy to evaluate the profits if you know how exactly you trade and what strategies you must adopt.


Determining all the factors and calculating profits are the best ways to know the amount of money you can make through trading forex. You can also calculate the average rate of profit that you will earn in an entire year.


The bottom line


Trading forex exchange is not a one-day task to earn a considerable amount. You need to invest and experiment a lot to become a good forex trader. There is no doubt that you can make much money from forex trading. But you have to focus on your performance to prevent yourself from massive loss.


Make sure that you come up with highly-effective trading strategies to get profits frequently. Millions of people worldwide are trading, but not everyone is getting the same results. You must calculate everything from your trading performance to future profits from forex. It will ensure that you are on the correct path or not. After analyzing everything, there will be a scope of improvement in your trading performance.


Make sure that you keep the above things in your mind for better results. Try to start trading by investing a small amount to prevent huge losses. It is better to understand your skills before trading enough money on different exchange currencies.



Can forex trading make you rich?


Can forex trading make you rich? Although our instinctive reaction to that question would be an unequivocal "no,” we should qualify that response. Forex trading may make you rich if you are a hedge fund with deep pockets or an unusually skilled currency trader. But for the average retail trader, rather than being an easy road to riches, forex trading can be a rocky highway to enormous losses and potential penury.


But first, the stats. A bloomberg article in nov. 2014 noted that based on reports to their clients by two of the biggest forex companies at the time—gain capital holdings inc. (GCAP) and FXCM inc.—68% of investors had net losses from trading currencies in the prior year. While this could be interpreted to mean that about one in three traders does not lose money trading currencies, that's not the same as getting rich trading forex.


Key takeaways



  • Many retail traders turn to the forex market in search of fast profits.

  • Statistics show that most aspiring forex traders fail, and some even lose large amounts of money.

  • Leverage is a double-edged sword, as it can lead to outsized profits but also substantial losses.

  • Counterparty risks, platform malfunctions, and sudden bursts of volatility also pose challenges to would-be forex traders.

  • Unlike stocks and futures that trade on exchanges, forex pairs trade in the over-the-counter market with no central clearing firm.


Note that the bloomberg numbers were cited just two months before an unexpected seismic shock in the currency markets highlighted the risks of forex trading. On jan. 15, 2015, the swiss national bank abandoned the swiss franc's cap of 1.20 against the euro that it had in place for three years.   as a result, the swiss franc soared as much as 41% against the euro on that day.  


The surprise move from switzerland's central bank inflicted losses running into the hundreds of millions of dollars on innumerable participants in forex trading, from small retail investors to large banks. Losses in retail trading accounts wiped out the capital of at least three brokerages, rendering them insolvent, and took FXCM, then the largest retail forex brokerage in the united states, to the verge of bankruptcy.


Unexpected one time events are not the only risk facing forex traders. Here are seven other reasons why the odds are stacked against the retail trader who wants to get rich trading the forex market.


Excessive leverage


Although currencies can be volatile, violent gyrations like that of the aforementioned swiss franc are not that common. For example, a substantial move that takes the euro from 1.20 to 1.10 versus the U.S. Dollar over a week is still a change of less than 10%. Stocks, on the other hand, can easily trade up or down 20% or more in a single day. But the allure of forex trading lies in the huge leverage provided by forex brokerages, which can magnify gains (and losses).


A trader who shorts $5,000 worth of euros against the U.S. Dollar at 1.20 and then covers the short position at 1.10 would make a tidy profit of $500 or 8.33%. If the trader used the maximum leverage of 50:1 permitted in the U.S. (ignoring trading costs and commissions) the profit is $25,000, or 416.67%.  


Of course, had the trader been long euro at 1.20, used 50:1 leverage, and exited the trade at 1.10, the potential loss would have been $25,000. In some overseas jurisdictions, leverage can be as much as 200:1 or even higher. Because excessive leverage is the single biggest risk factor in retail forex trading, regulators in a number of nations are clamping down on it.


Asymmetric risk to reward


Seasoned forex traders keep their losses small and offset these with sizable gains when their currency call proves to be correct. Most retail traders, however, do it the other way around, making small profits on a number of positions but then holding on to a losing trade for too long and incurring a substantial loss. This can also result in losing more than your initial investment.


Platform or system malfunction


Imagine your plight if you have a large position and are unable to close a trade because of a platform malfunction or system failure, which could be anything from a power outage to an internet overload or computer crash. This category would also include exceptionally volatile times when orders such as stop-losses do not work. For instance, many traders had tight stop-losses in place on their short swiss franc positions before the currency surged on jan. 15, 2015. However, these proved ineffective because liquidity dried up even as everyone stampeded to close their short franc positions.



Forex brokers with best money withdrawal options in 2021


The best and most exciting thing about forex trading is, of course, to withdraw your profit from the forex broker. Say you have been trading, made a considerable amount of profit and now you want to spend your profit. In order to be able to do it, first you have to get your money back from the broker. To withdraw money from your forex account is very straightforward in general but does require you to take few steps.


Forex brokers with best money withdrawal options



Forex.Com


Forex.Com is owned and operated by an industry giant; GAIN capital holdings who has been around for more than 20 years. Forex.Com is registered and regulated by CFTC, NFA and CIMA. The broker accepts clients from the US. Investors can deposit and withdraw funds by credit card, bank card and wire transfer. Digital wallets are going to be available soon.


Money withdrawal options: credit card, bank card, wire transfer


Part I, money from forex.


XM


XM puts more than ten methods of deposit and withdrawal under disposal of its clients. In addition to international bank transfer and credit card which has become industry standards as deposit and withdrawal methods, XM clients can use various other methods. Those methods include neteller, skrill, unionpay, web money, ideal, moneybookers, moneygram, sofort and western union. One important detail which makes XM even more favorable is that the broker covers international wire transfer commission of its own part which considerably reduces the withdrawal cost.


Money withdrawal options: wire transfer, credit card, neteller, skrill, unionpay, web money, ideal, moneybookers, moneygram, sofort, western union



Fxpro


Regulated by FCA,cysec and SCB, fxpro is headquarted in london and one of the most prominent forex brokers in the industry. Traders who open an account at fxpro can withdraw and deposit funds through credit card, international bank transfer (SWIFT), paypal, skrill, neteller and china unionpay.


Money withdrawal options: wire transfer, credit card, paypal, skrill, neteller, unionpay


Part I, money from forex.


Hotforex


Established in 2010 and headquartered in cyprus, hotforex is an award winning forex broker that offers a wide range of account types and trading instruments. The broker is pursuing a policy of providing the most convenient and advantageous trading conditions for the traders. You can deposit money in hotforex using credit or debit cards and bank wire transfers. Apart from that hotforex also accepts skrill, neteller, fasapay, sofort, mybitwallet, ideal and webmoney.


Money withdrawal options: wire transfer, credit card, skrill, neteller, fasapay, sofort, ideal, webmoney, bitcoin



Exness


Exness was founded in 2008 in russia and has grown into one of the most popular forex brokers in europe since then. The company is regulated by cysec in cyprus and FCA in UK. Having a wide array of payment methods, transacting money on this brokerage platform is pretty easy and quick.


Money withdrawal options: wire transfer, credit card, skrill, neteller, webmoney, perfect money, sticpay, jeton wallet


Choose the withdrawal option


When it comes to withdraw your profit from forex brokers, the methods are not scarce including credit card, wire transfer, paypal, neteller, skrill, western union, bitcoin to name a few.


I usually go with wire transfer when withdrawing my profit. Nevertheless it comes with some caveats. Wire transfer is recommended if only you are going to withdraw an amount over a thousand. Otherwise the bank transfer fees are going to eat up your hard earned profit. Bear in mind that when you choose to get your money back through wire transfer, you are going to get double charged (once by the bank in where your forex broker is located and again by your local bank). The fees could range from $50 to $100 in total. The certain amount completely depends on the bank the broker is working with and your local bank. International wire transfer fees charged by some US banks are explained in this article.


How to Withdraw Money From Forex Broker - Withdrawal Options


My second favorite option to withdraw funds from forex account is credit card. Again there are some caveats. Some forex brokers don’t allow you to withdraw more than what you deposited with the same credit card. When you deposit $1000 to your forex account using credit card, you can only withdraw an amount up to $1000 by the same card. So you will have to choose another withdrawal method to transfer your profit.


Though I haven’t used so far, other popular methods are digital wallets like neteller, skrill, paypal. Forex brokers don’t charge extra fees to withdraw money by digital wallets however those services apply their own fees when you want to transfer money from the wallet to your bank account.


Submit your withdrawal request


After you decided the best transfer option for you, you have to submit your withdrawal request. Forex brokers used to demand clients to print out a withdrawal form then fill, sign and forward it to the broker by mail or e-mail.


However nowadays you don’t have to go through this cumbersome process. Majority of the forex brokers provide clients with a username and password for the client portal where they can submit their money withdrawal request in just seconds.


Just log in to the client portal, navigate to the money withdrawal section, fill the online form and click the submit button. Congratulations!


An important caveat is that some forex brokers do not require clients to verify their account till to the point they wish to withdraw funds from their account. If this is the case for the broker that you are trading with, you will need to verify your forex trading account by loading proof documents for ID and address. However, you will have always the chance to verify your account upon registration in case you do not want to worry about the last minute rush.


Wait until your fund is transferred to your bank account / credit card / digital wallet


It ranges between one to three business days depending on the forex broker and withdrawal option you used. Wire transfer and credit card transfers could take up to three business days. Though I remember several times that I received the funds same day when I used wire transfer as the transfer option. The commission and fees are not fixed for wire transfer. Since there are three banks involved at a wire transfer transaction, it is hard to know the exact amount that is going to be charged as commission. However, based on my experience, I can say that it should range between $30 and $100.


Digital wallets such as skrill and neteller has a different commission and time schedule. First time you incur any commission is the moment you withdraw funds from your trading account. The rate changes between %3 and %2 of the amount you like to withdraw. It takes fews days between the time that money leaves your trading account and arrives at your digital wallet. Second time you will get charged is the moment you transfer the money from your skrill account to your bank account. That is another %3 – %2 commission.


Wire transfer is my preferred withdrawal and deposit method. I use digital wallets only if wire transfer is not among the methods offered by the forex broker. Credit card is fast and more reasonable than any other withdrawal and deposit method. Nevertheless, I shall kindly point out that in the case you choosed credit card as a withdrawal method, you can only withdraw the amount you deposited by the same credit card. Therefore, you will have to use another method in order to be able to withdraw your profit.



Can you really become a millionaire from forex trading?


There are some questions that are frequently asked by novice traders:


Among all the frequent questions, there is one question which is asked by some novice traders more often:


Can I become a millionaire through forex trading?


I have two clear answers for this question and I explain about each of them in details:



  1. Yes, you can.

  2. No, you cannot.



Making lots of money through forex trading is completely dependent on some special conditions.


When someone has the proper conditions, he can make millions through forex trading.


When he doesn’t have the proper conditions, he will do nothing but wasting of time and money.


What are those conditions?


You can increase your wealth and become richer through forex trading and become a millionaire or even a billionaire.


However, if you are among those who want to turn a $500 or even a $5000 account into millions, then I have to tell you that you have to be patient enough.


I am not saying that it is impossible to make millions with forex.


Anything is possible in this world.


However, you have to be patient, because it can’t be done overnight, or even in one year.


You will be faced with some challenges that finding a good broker that doesn’t cheat you is the biggest one.


Many forex brokers (market maker brokers) don’t let you grow your account consistently, because in most cases, your profit is their loss.


Millionaire On Board
Forex is not a get-rich-quick scheme


It is not too easy to make a living through currency trading. Someone has to teach you the right techniques, otherwise you can’t get anywhere on your own.


It is the same with the stock trading and all other kinds of tradings and investments.


To make money consistently through forex trading and maybe to become a millionaire finally, you have to pass some important stages.


There are so many jobs that you can follow and become a millionaire.


It is not the job that has to make you a millionaire.


It is “you” who has to follow the job properly to become a millionaire.


For example, there are so many millionaire real estate agents and brokers in big cities like new york.


However, there are a lot more agents who cannot even cover their monthly expenses in the same cities.


All agents are in the same areas, have access to the same markets and customers, ruled under the same jurisdictions, use the same advertising media and… .


But, how can some of them become millionaires, and most of the others fail to have even one sale per month?


Whatever the reason is, it has nothing to do with the real estate business itself, because it is the same for all the agents and brokers.


The reason is in the agents and brokers behavior, life and work style.


Behavior, life and work style


Forex trading is like that too.


It possible to become a millionaire through forex trading, as it is possible to become a millionaire through stock trading, programming, marketing, importing and exporting, constructing, and…


The more important question is “how?”


There are two things that you have to do to become a millionaire forex trader:


2. You have to develop the trading discipline in yourself.


You can’t become rich through forex trading, without having these two at the same time.


It is not even possible to make a living without having the discipline, whether you master the trading techniques or not.


I’ve never seen even one single retail forex trader who has become able to become rich or millionaire without following the proper techniques and having the discipline it takes.


Even I’ve never seen a forex trader who has been able to make a living like this.


There is no consistently profitable and professional currency trader who doesn’t trades forex with the proper technical analysis methods.


When you have a big capital, you can trade currencies through a bank account, instead of retail brokers. But most people still have to be patient to reach this level.


And, as bank accounts are not leveraged, you will trade with more peace of mind. But you should start small at the beginning.


Those who don’t believe in what I explained above can spend some time and money on forex trading at least through having small live accounts with retail forex brokers.


I am 100% sure that they will remember what I’ve explained above, and will be back to this site after wasting lots of time and money. The reason is that most novice traders start trading with real money before they do the above two things: (1) developing proper techniques and (2) discipline.


How can you become a consistently profitable forex trader?


Unlike what most people think, it is not possible to start making money right after learning the forex trading basics and a trading strategy.


There is something very important that most people don’t consider:


To learn how to trade forex, become a consistently profitable trader and hopefully a millionaire, first you have to find a mentor who teaches you the currency trading techniques and help you to develop the discipline in yourself.


Additionally, you’d better to have an income that covers your expenses and leaves you some free time to sit at the computer and learn how to trade with peace of mind.


You can make any money through forex trading and any other kinds of trading when you DON’T HAVE TO make money and you don’t have financial problems. Therefore, having a source of income is a big help.


False forex success stories


Most people think that they can learn to make money through forex trading within a very short time, and become a full-time forex trader who makes thousands or even millions of dollars.


This is is not true at all.


There are so many false forex millionaires stories over the internet.


Be careful not to be deceived by them.


None of the real millionaires or billionaires, like george soros, have made their wealth through forex or stock trading without following strong strategies. However, they are experienced business people who make a lot of money through several sources of income they have.


Then they invest a portion of their wealth in currency, stock, real estate… markets to increase their wealth: A short term investment strategy that makes you a millionaire


This is how they’ve become millionaires or billionaires. Their increase their wealth through forex or stock trading while they have other sources of income.


Therefore, if you like to become a millionaire, first you have to have a good source of income that makes a reasonable amount of money that not only covers your expenses, but also leaves some money for your trading and investments.


Then you can start learning how to trade.


You have to keep on learning and practicing until you become a consistently profitable trader. That’s why we enable our trading students to develop a source of income too.


The hassles of following too many trading strategies


Some traders the hard way of following too many trading strategies, robots and time-frames, and sitting at the computer for several hours per day.


That is the hard way which can hardly take you to your destination.


The simpler and easier way is learning the forex trading basics, and then a simple and strong trading strategy.


Then you have to master your trading strategy through demo trading.


When you succeed to make profit consistently for 12 consecutive months at least, you can open a small live account and start practicing with it.


If you can make profit consistently for 12 consecutive months with your live account too, the way you could make profit with your demo account, then all you have to do is that you keep on trading with your live account to grow it, or adding some more money to it. But don’t make your account too big. You will be faced with lots of negative emotions when you are still new and you want to trade with a too big account.


A source of income is really good


To become a full-time forex traders who makes money consistently, you have to spend some time. I already explained it above.


If you don’t have an income currently, or if your income is not enough to give you time and mind freedom to learn forex, you should develop a source of income that covers your life and enable you to open a live account in the currency market when it is the time.


You can keep making money with your source of income until you are ready to open a trading account. If your income is enough to trade through a bank account later when you are ready to do it, it will be even better.


Trading through a bank account will have a lot more advantages compared to trading through forex brokers.


The only problem of trading through a bank account is that you have to have a lot of money because banks don’t offer any leverage.


Therefore, to become able to trade through a bank account, you have to have a lot of money already.


That is why I emphasized on having a strong source of income earlier in this article.


If you want to become a millionaire forex trader, you must have a good income and backup.


Turning a small $5000 account into a million dollar account is possible theoretically.


You can do it slowly and surely when you become a consistently profitable trader and you have enough patience. However, you have to be a patient and disciplined forex trader to do it. And, you can’t do it alone. You need the mentors technical and emotional support.


Do it the right way:


You need to become a professional trader through learning the best and most accurate technical and fundamental analysis techniques. This is the only thing that makes you a professional trader who can consistently make profit.


When they become consistently profitable forex traders eventually, they have enough money to open live accounts or even professional live forex trading accounts with the banks to trade professionally and increase the money they make.


This is how they can become millionaire forex traders while they also have some other good sources of income to support their forex and stock trading investments.


So, the answer of this question that whether it is possible to become a millionaire through forex trading is in the facts that I explained in detail above.


Be careful not to be deceived by the scam mentors or brokers. They are there to make money from your losses, not to make you a millionaire.



10 ways to avoid losing money in forex


The global forex market is the largest financial market in the world   and the potential to reap profits in the arena entices foreign-exchange traders of all levels: from greenhorns just learning about financial markets to well-seasoned professionals with years of trading experience. Because access to the market is easy—with round-the-clock sessions, significant leverage, and relatively low costs—many forex traders quickly enter the market, but then quickly exit after experiencing losses and setbacks. Here are 10 tips to help aspiring traders avoid losing money and stay in the game in the competitive world of forex trading.


Do your homework


Just because forex is easy to get into doesn’t mean due diligence should be avoided. Learning about forex is integral to a trader’s success. While the majority of trading knowledge comes from live trading and experience, a trader should learn everything about the forex markets, including the geopolitical and economic factors that affect a trader’s preferred currencies.


Key takeaways



  • In order to avoid losing money in foreign exchange, do your homework and look for a reputable broker.

  • Use a practice account before you go live and be sure to keep analysis techniques to a minimum in order for them to be effective.

  • It's important to use proper money management techniques and to start small when you go live.

  • Control the amount of leverage and keep a trading journal.

  • Be sure to understand the tax implications and treat your trading as a business.


Homework is an ongoing effort as traders need to be prepared to adapt to changing market conditions, regulations, and world events. Part of this research process involves developing a trading plan—a systematic method for screening and evaluating investments, determining the amount of risk that is or should be taken, and formulating short-term and long-term investment objectives.


How do you make money trading money?


Find a reputable broker


The forex industry has much less oversight than other markets, so it is possible to end up doing business with a less-than-reputable forex broker. Due to concerns about the safety of deposits and the overall integrity of a broker, forex traders should only open an account with a firm that is a member of the national futures association (NFA) and is registered with the commodity futures trading commission (CFTC) as a futures commission merchant.     each country outside the united states has its own regulatory body with which legitimate forex brokers should be registered.


Traders should also research each broker’s account offerings, including leverage amounts, commissions and spreads, initial deposits, and account funding and withdrawal policies. A helpful customer service representative should have the information and will be able to answer any questions regarding the firm’s services and policies.


Use a practice account


Nearly all trading platforms come with a practice account, sometimes called a simulated account or demo account, which allow traders to place hypothetical trades without a funded account. Perhaps the most important benefit of a practice account is that it allows a trader to become adept at order-entry techniques.


Few things are as damaging to a trading account (and a trader’s confidence) as pushing the wrong button when opening or exiting a position. It is not uncommon, for example, for a new trader to accidentally add to a losing position instead of closing the trade. Multiple errors in order entry can lead to large, unprotected losing trades. Aside from the devastating financial implications, making trading mistakes is incredibly stressful. Practice makes perfect. Experiment with order entries before placing real money on the line.


$5 trillion


The average daily amount of trading in the global forex market.  


Keep charts clean


Once a forex trader opens an account, it may be tempting to take advantage of all the technical analysis tools offered by the trading platform. While many of these indicators are well-suited to the forex markets, it is important to remember to keep analysis techniques to a minimum in order for them to be effective. Using multiples of the same types of indicators, such as two volatility indicators or two oscillators, for example, can become redundant and can even give opposing signals. This should be avoided.


Any analysis technique that is not regularly used to enhance trading performance should be removed from the chart. In addition to the tools that are applied to the chart, pay attention to the overall look of the workspace. The chosen colors, fonts, and types of price bars (line, candle bar, range bar, etc.) should create an easy-to-read-and-interpret chart, allowing the trader to respond more effectively to changing market conditions.


Protect your trading account


While there is much focus on making money in forex trading, it is important to learn how to avoid losing money. Proper money management techniques are an integral part of the process. Many veteran traders would agree that one can enter a position at any price and still make money—it’s how one gets out of the trade that matters.


Part of this is knowing when to accept your losses and move on. Always using a protective stop loss—a strategy designed to protect existing gains or thwart further losses by means of a stop-loss order or limit order—is an effective way to make sure that losses remain reasonable. Traders can also consider using a maximum daily loss amount beyond which all positions would be closed and no new trades initiated until the next trading session.


While traders should have plans to limit losses, it is equally essential to protect profits. Money management techniques such as utilizing trailing stops (a stop order that can be set at a defined percentage away from a security’s current market price) can help preserve winnings while still giving a trade room to grow.


Start small when going live


Once a trader has done their homework, spent time with a practice account, and has a trading plan in place, it may be time to go live—that is, start trading with real money at stake. No amount of practice trading can exactly simulate real trading. As such, it is vital to start small when going live.


Factors like emotions and slippage (the difference between the expected price of a trade and the price at which the trade is actually executed) cannot be fully understood and accounted for until trading live. Additionally, a trading plan that performed like a champ in backtesting results or practice trading could, in reality, fail miserably when applied to a live market. By starting small, a trader can evaluate their trading plan and emotions, and gain more practice in executing precise order entries—without risking the entire trading account in the process.


Use reasonable leverage


Forex trading is unique in the amount of leverage that is afforded to its participants. One reason forex appeals to active traders is the opportunity to make potentially large profits with a very small investment—sometimes as little as $50. Properly used, leverage does provide the potential for growth. But leverage can just as easily amplify losses.


A trader can control the amount of leverage used by basing position size on the account balance. For example, if a trader has $10,000 in a forex account, a $100,000 position (one standard lot) would utilize 10:1 leverage. While the trader could open a much larger position if they were to maximize leverage, a smaller position will limit risk.


Keep good records


A trading journal is an effective way to learn from both losses and successes in forex trading. Keeping a record of trading activity containing dates, instruments, profits, losses, and, perhaps most important, the trader’s own performance and emotions can be incredibly beneficial to growing as a successful trader. When periodically reviewed, a trading journal provides important feedback that makes learning possible. Einstein once said that “insanity is doing the same thing over and over and expecting different results.”   without a trading journal and good record keeping, traders are likely to continue making the same mistakes, minimizing their chances of becoming profitable and successful traders.


Know tax impact and treatment


It is important to understand the tax implications and treatment of forex trading activity in order to be prepared at tax time. Consulting with a qualified accountant or tax specialist can help avoid any surprises and can help individuals take advantage of various tax laws, such as marked-to-market accounting (recording the value of an asset to reflect its current market levels).  


Since tax laws change regularly, it is prudent to develop a relationship with a trusted and reliable professional who can guide and manage all tax-related matters.


Treat trading as a business


It is essential to treat forex trading as a business and to remember that individual wins and losses don’t matter in the short run. It is how the trading business performs over time that is important. As such, traders should try to avoid becoming overly emotional about either wins or losses, and treat each as just another day at the office.


As with any business, forex trading incurs expenses, losses, taxes, risk and uncertainty. Also, just as small businesses rarely become successful overnight, neither do most forex traders. Planning, setting realistic goals, staying organized, and learning from both successes and failures will help ensure a long, successful career as a forex trader.


The bottom line


The worldwide forex market is attractive to many traders because of the low account requirements, round-the-clock trading, and access to high amounts of leverage. When approached as a business, forex trading can be profitable and rewarding, but reaching a level of success is extremely challenging and can take a long time. Traders can improve their odds by taking steps to avoid losses: doing research, not over-leveraging positions, using sound money management techniques, and approaching forex trading as a business.



How much money can you make from forex trading?


The question of how much money you can make currency trading is a big one that is asked online quite often, so much so that I decided to write an entire 2,000+ word article on it.


See, while this question is incredibly broad, the money you can make from trading forex can be estimated depending on how much money you have, the leverage you’re using, etc.


So, how much money can you make from forex trading?


You can make anywhere from hundreds to thousands of dollars a day trading forex; the bigger your bankroll and equity, the more you can invest therefore the more profits you can reach. While there are plenty of forex traders who do very well, the reality is that most forex traders lose money.


The answer to ‘how much money can you make from forex trading’ is unlimited amounts of money, although perhaps the better question is ‘how much money will you make from trading forex?’


So, how much money can you make with forex trading?


How Much Money Can You Make From Forex Trading?


There is no way to predict exactly how much you should make each day in forex trading. The key is to set earning goals that are realistic for your economic situation, how much time you have to invest, your skillset, etc.


Obviously, the better you get at trading forex, the more money you will make. This statement does not come without a warning; as mentioned previously (and many times on this site), most forex traders fail.


The answer to ‘how much money can you make from forex trading’ is unlimited.


Yes, most forex traders come out with negative results.


That said, there’s no reason to get scared if you are willing to put the time and effort into learning how to trade forex.


With the right resources and practice, it is entirely possible to make a full-time living solely off of forex trading (and you don’t have to be rich, either!)


People are drawn to forex for reasons such as:



  • Forex requires a lot less starting capital than stock trading (or other investing)

  • You can trade forex 24 hours a day, 5 days a week

  • Forex is extremely volatile, which means you have the potential to make a much greater return on your investments (compared to other financial investing)

  • There are a large variety of strategies and methods you can utilize to trade forex, and you will likely find one that works for you



For these reasons and more, forex is seen as an attractive option to make some money online – however, because forex is so volatile and there is an opportunity to make so much money, you can also lose substantial sums of cash.


As long as you have a realistic view of the dangers of forex trading, you can focus on avoiding these risks and achieving the success that so many others have found with currency trading.


This post will answer the following questions:



  • How much do forex traders make?

  • How much do forex traders make a day?

  • How much do professional forex traders make?

  • How much do professional forex traders make A day?

  • How much money can you make trading forex?

  • How much money do I need to start forex trading?



This article is intended to provide a practical depiction of how much the average forex trader can expect to make, and also how much professional forex traders usually make.


Also, I hope this post can put to rest some of the fantasies you may have about forex trading, thanks to the faux-marketing and forex scams out there. Unfortunately, a 20% return is not doable every single month – any system or ‘forex robot’ claiming otherwise is lying to you.


Use these answers as inspiration and goals to work towards – with the right amount of hard work and dedication, anyone can reach these levels of success.


How much do forex traders make?


How Much Money Can You Make From Forex Trading?


The average forex trader can expect to make no more than 5% of your account size back every month.


So, if you happened to have a great month and you gain 5%, that means:



  • If you trade with $10,000, you made $500.

  • If you trade with $5,000, you made $250.

  • If you trade with $1,000, you made $50.



Not to worry – many great forex traders grow their bankroll over time and eventually get to a point where they have an account with hundreds of thousands of dollars.



  • Bill lipschutz, one of the top forex traders out today, started trading with $12,000

  • Ed seykota started trading with $5,000

  • Randy mckay started trading with just $2,000!



Becoming a successful trader is a process, not an overnight occurrence; if you aren’t coming into the forex game with heaps of money, it will take some time before you are one of the big dogs.


Obviously, how much money you can earn in forex trading varies greatly, and the amount of money you do make will change every single month – you might have a fantastic month, turning profits of 30%, just to lose 40% your next month.


This is where strategy and proper risk management comes in – although leverage in forex is great, you do have to proceed with caution if you hope to stay in the game for the long run.


Keep your risk low (especially when starting, don’t risk more than 1% of your capital ever), and make trades that have great risk/reward ratios!


How much do forex traders make A day?


How Much Money Can You Make From Forex Trading?


If the average forex trader makes about 1% to 5% a month trading, then following this logic, this works out to returns of 0% to 0.15% a day.


The question of ‘how much do forex traders make a day’ is especially broad – while everyone likes to come out profitable every single day, this is just not how it works.


The goal is to be profitable overall, which means at the end of the month (or any span of time) you want to be up.


If you are trading long-term, you will have some bad days.


All you can do is keep going and trading according to strategy, aiming to be profitable over the long-term.


There is no set amount of how much forex traders will make in a day, although it’s not uncommon for certain traders to have daily goals they try to hit.


Now that you are familiar with how much money forex traders make and how much money forex traders make in a day, let’s take a look at how much money professional forex traders make.


How much do professional forex traders make?


How Much Money Can You Make From Forex Trading?


Professional forex traders can make a 5-10% return on their capital monthly – the catch is that their accounts are usually huge, well over a million dollars, so that a 10% return can mean hundreds of thousands of dollars every single month.


Obviously, as with all forex trading, the returns will vary widely – even professional forex traders have off months, and then spectacular months where they make up to 50% of their capital back!


Use these big returns as motivation to keep growing your forex trading account.Use these big returns as motivation to keep growing your forex trading account.


How much do professional forex traders make A day?


While we all wish we could have as successful a day trading forex as george soros once did, this is unlikely to ever occur.


How Much Money Can You Make From Forex Trading?


That said, there are some professional forex traders who are making heaps of money every single day (think more returns in a day then you have in your entire account!)


Speaking conservatively, a professional forex trader can expect to make anywhere from 0% to 1% of their capital.


Obviously, these are just hypotheticals – but there are certainly some forex pro’s out there making this kind of money.


Again, use this as motivation to keep moving forward! Everyone has to start somewhere.


How much money can you make trading forex?


How Much Money Can You Make From Forex Trading?


I hope this post gave you an idea of how much both the average and professional forex trader might make – it’s worth mentioning again that these numbers vary greatly, and I’m sure there will be some people who read this post will disagree strongly (feel free to leave a comment)!


Every forex trader uses a different forex strategy and has different approaches to trading; because of this, questions such as ‘how much money can you make off forex trading?’ are hard to provide a concrete answer for.


If there was one specific strategy for forex trading that worked, every single trader would be successful – obviously, this is not the case.


In order to reach the levels of success that many average and professional forex traders have obtained, you need to create realistic goals and have legitimate grasps of risk/reward ratio, risk management, money management, stop loss, etc.


Risk management is arguably the most important part of forex trading – this is how you stay in the forex game for years to come.


If a forex trader is making crazy 20% returns, that means they are probably risking much more of their capital then they should.


Remember, the key is long-term growth and success.


Utilizing proper risk management is how you stay afloat for years to come and is how you can live off of trading forex full-time!


How much money do I need to start forex trading?


How Much Money Can You Make From Forex Trading?


How much money do you need to trade forex? It depends.


As I mentioned earlier, some of the most well-known forex traders today started with accounts of just a few thousand dollars.


This puts to rest the idea that you need to already be rich in order to make big enough returns on currency trading – this is simply untrue.


Not only myself but many of my friends and colleagues started trading part-time with just a few thousand dollars and grew it to accounts of hundreds of thousands of dollars.


So, how much money do you need to trade forex? As much as you have.


If you only have $500, fine – go for it. You certainly won’t make enough to go full-time, but over time you can grow it into something substantial.


That said, I do recommend having at least a couple grand – $2,000 – which I think is the sweet spot for starting trading. While this isn’t enough to quit your day job and trade the forex markets full time, this is enough to get you started and has been proven to be enough to grow into a big-time successful account.


Just make sure that however much money you’re investing in currency trading, you can afford to lose it.


If you do want a chance to make returns on your investment and not lose your money, you must take the time to learn how to properly trade forex and make profitable trades.


Learn to trade forex


How Much Money Can You Make From Forex Trading?


Figuring out the best strategy for you is the key to trading forex successfully – if you don’t know any strategies or simply want to learn how to trade forex, definitely make sure to properly educate yourself before investing any real money into the markets.


For those who want a program that will teach you everything you need to know to get started in forex and more, go read our post on a mentorship program that is both valuable and affordable.


Also, if you haven’t already, make sure to grab our free forex trading fortunes PDF – enter your details below to get your copy sent straight to your email today!


How much money can you make from forex trading?


You can really make an unlimited amount of money from forex trading, although typically, anywhere from 1% to 10% returns on capital are expected, per month.


How much do forex traders make?


The average forex trader will usually make no more than 5% returns on their capital, per month.


How much do forex traders make A day?


The average forex trader will usually make anywhere from 0% to 0.15% returns, per day – the number varies.


How much do professional forex traders make?


Professional forex traders usually aim for 5% to 10% returns on their capital, per month.


How much do professional forex traders make A day?


Professional forex traders make up to 1% a day returns, give or take. The number varies.


How much money do I need to start forex trading?


The number varies; you can start with $100 or $1,000,000 – the more money you have, the more profit you can make.


Part I, money from forex.


I’m a full-time forex trader, happily making money from the comfort of my own home.


I help others find financial freedom and success with forex trading.



How to get money back from forex scam – can you even get it back?


How to get money back from forex


Forex trading is one of the most famous forms of trading on the internet. There was a time in the past when you had to go to money exchanges to get a different currency for the currency you had. However, you can now trade fiat currencies from the comfort of your home, thanks to the online trading industry. When you trade online, you sign up with an online broker first. This broker gives you access to the forex market where you can see all the available currency pairs that you can trade. You can pick any currency pair and trade it with real money. You deposit this money into your online account through bank wire transfer, credit card, or some other method.


If you feel that you have been scammed by a forex broker trading scheme then you are welcome to visit our investment and trading scams page, for more information or visit our contact page to get help.


However, the fame of online trading has attracted many black sheep in the industry. You now have many online forex brokers that are not brokers at all. They are scammers in disguise you want to snatch away your money. Millions of people lose their money in the hands of these fake online brokers. And if you are one of them, you are also wondering how to get money back from forex scam. Can you get it back?


How to get money back from forex scam – getting it back is possible


If you are lucky enough, you can get your money back. Saying that you can’t get your money back at all would be wrong. As you continue to read, you will find out some methods that you can use to get the money back that you have lost in the hands of an online scammer. It won’t be wrong to say here that you have to be very lucky to get the money back. Even if you involve the police or some other intelligence agency, the chances of you getting the money back are very thin. You have to keep in mind that many of these online scammers have created their system after proper research.


They know how to deceive you and escape the system. They scam you, take your money, and disappear to never show up again. Not to mention, you never really know their real identities, and that’s why catching them becomes nearly impossible. However, things have changed in recent years. Today, the chances of you getting the money back have increased tremendously. Let’s discuss three methods that can help you get your money back from an online scam broker.


Methods to get your money back from forex scam


· calling your local police – very little chance


The first on the list of how to get money back from forex scam is the police. Yes, whenever you are scammed or you find yourself involved in a scenario where you have been deceived, you should get in touch with your police. That’s actually the best course of action you can take. However, your local police have some limitations. It cannot catch the thieves that are outside its domain of operation. So, if the broker is located in your country, there is still some chance that the police will get it. However, if the broker is located in some other country, you have nearly no chance of getting the money back from the scam.


· getting in touch with a regulatory authority – 50/50 chance


Now, you will be lucky if you sign up with a broker and get scammed, and then find out that the broker was regulated. If the broker that scammed you is regulated, you have some chance that you can get your money back. You just have to go on the website of the broker and find out which regulatory authority regulates it. After that, you just need to get in touch with the regulatory authority. You might find a contact form on their website or a phone number that you can call. You should immediately inform them about the mishap. You should tell them the name of the broker clearly.


If they have already gotten some complaints against the same broker, the chances are very high that they might even seal the website of that broker. However, such a perfect scenario does not happen every day. Why? Well, why will a scammer get regulated? Yes, in most cases, you are scammed by forex scams that are not regulated in the first place.


· getting help from money-back – very high chance


When you get in touch with money-back to file a complaint against an online forex scam, your chances of getting the money are very high. In fact, when you search how to get money back from forex scam after some years, money-back might be the only name you will find in your search results. Money-back has started only four years ago with its services. It has already served clients from many countries of the world with their issues with online brokers. The company has already dealt with more than a thousand cases successfully, which means the people who filed the complaint against the broker with money-back got their money back.


Why is the success rate of money-back so high in getting the money back from online scam brokers? Well, the company has been formed by a team that consists of professionals lawyers, psychologists, and industry experts. They have come together to form a team that not only knows how the laws that govern the online trading industry but also the tactics that make these online scammers give money back to the traders immediately.


Final thoughts


Just a few years ago, you could not have gotten your money back from the online scammers. If you searched for how to get money back from forex scam, you would have landed on the website of your local police after all. However, local police are usually not able to do anything when the scammer is located on the other side of the world. That’s where you need only digital police like money-back. These scammers are ready to give traders their money back instantly when they hear a lawyer on the phone, and when they know they will lose millions when the case goes inside the court. So, choose your online broker wisely, and your well-wishers even more wisely.


If you feel that you have been scammed by a forex broker trading scheme then you are welcome to visit our investment and trading scams page, for more information or visit our contact page to get help.





So, let's see, what we have: part I. Where does the money come from in FOREX? - forex military school at money from forex

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