How To Make Money in Forex

Hallo the readers, now i want to share about how to make money at the forex. The first thing you must know is what is the forex it self. Some people maybe know but some people has no idea of that. Forex is foreign exchange, and it move at currency sector around the world. Maybe you know about stock, it approximately like forex. There have same method at trading like a number of lot, chart, instrument, etc. But in the fact, stock market and forex are different. Okay, now maybe you can imagine abou forex.

Many people around the world can earn the money at forex. How? The first step is we have to join the broker of forex, no matter what company you sign, but that company must be perfectly legitimate. After that, deposit you money, up to you how much that is.. :)

The second step is you must have the system. You can create your system your self, it can afford to you become a profesional or buy the robot system, but the robot system not always can make the money. It's your option.

How is it possible?

There are brokerage companies that enable you to buy and sell different currencies through the Internet and some simple softwares. For any trade that you make, you pay a small commission to the brokerage company that you are trading through.

You need to find a good, reliable and well-known brokerage company and sign up for an account with it. Then you have to fund your account. You use the money you have in your account to trade. Any profit that you make, will be added to your account and visa versa. Then you can withdraw the money you have made.

What currencies can you trade?

In Forex, you deal with currency pairs. There are four main currency pairs: British Pound and USD (GBP/USD), Euro and USD (EUR/USD), USD andJapanese Yen (USD/JPY), USD and Swiss Frank (USD/CHF).

In each currency pair, the first currency works as commodity and the second one works as money. For example when you choose GBP/USD to trade, if you buy, you buy British Pound against USD and if you sell, you sell British Pound against USD. It doesn’t matter what currency you have in your account. The trading software takes care of the exchanges and transactions automatically.

How can you make money?

Buying low and selling high or selling high and buying low is the base of making money in Forex. For example If you buy GBP against USD when each GBP is equal to $1.9554USD and then sell it when it is $2.0235USD, you have made a profit. I don’t want to focus on more details in this article and explain how the profits and the money you make will be calculated. I will talk about these topics in other articles.

But the big question is that how you can find out the best time to buy and how you can predict that if you buy, the price will go up and you will make a profit? This is the most important question that makes you a successful trader.

There are two methods to know the optimum time to buy and sell: Technical and Fundamental Analysis.

In technical analysis, you can predict the direction of the price using the the price chart analysis and also with the help of some special tools that are called Indicators.