How to Learn Forex: 9 Steps to Being a Successful Trader

October 6, 2017


 With the economic instability of the financial market, people have increasingly sought more profit alternatives than fixed income. You may have noticed that even with the permanent crisis, there are those who can achieve above-average gains.


Whether by investing in stocks, real estate funds, real estate leasing, among others, living short-term income is entirely possible. But I imagine that, like me, you worry about your future, do not you? Rest assured that there are long-term investments that allow you to prepare now for your retirement, for example.

In this case, Forex trading is an excellent opportunity to make money work for you. If you are already an investor and / or interested in how to learn Forex, follow along in this article some tips that I have prepared for you to gain your financial independence. Remember that the main requirement you already have is your concern for your future and that of your family.


What is and how to learn Forex?


Foreign Exchange Market is a form of financial investment that allows for gains or losses, as we will see later, from the buying and selling of foreign currency pairs such as the dollar and the euro, using their appreciation or devaluation. Generally, those who enter this market already have or had some investment experience. If this is not your case, do not worry, you too can learn. There are three essential requirements for you to master Forex investment techniques.

Learn from the experience of other investors: Seek to follow the work of close or public people who share your experiences.
Develop a winning mental attitude: set goals and objectives and have the discipline to stay focused, even when the environment is unfavorable.
Count on a reliable structure: to operate within the law, you must hire a brokerage firm abroad. Strange as it may seem, it’s a very simple process.


What are the differences between investing in the Stock Exchange and in Forex?


The Stock Exchange is a very transparent and organized market where shares of companies (public or private) with public capital and derivatives are traded. By investing in the Exchange, you can profit from both the distribution of profits / dividends and the increase in the value of the company. Because your investments remain within the national territory, you depend on the economy’s favorability to make your income profitable.

In the case of Forex, the investment is made abroad. Therefore, the chances of gain are greater, since the investor gains or loses money with the difference between the quotation of the chosen currency pairs. If you want to know more details, read my article on how to make the investment abroad. Compared with the investments on the Stock Exchange, learning to trade Forex requires a little deeper knowledge and skills.


What are the advantages of learning Forex?


The main advantage of learning to trade in the Forex market is the high liquidity rate in the market. But what does it mean? Very simple. Forex trades around $ 5 trillion daily and is considered one of the most relevant trading markets in the world. There is a great deal of buying and selling currencies, which allows you to invest as much money as you want and make short-term trades without any problems.

In order to keep up with the volatility of markets such as the United States, Europe and Asia, Forex trading operates 24 hours a day, with the exception of weekends, operating from Sunday night to Friday night. This detail brings another series of strategic opportunities that you can take advantage of, including testing the strategy most appropriate to your investor profile and with that, to know the various operational possibilities.

Another great advantage when learning Forex is the leverage alternative, which means trading with more money, but with calculated risks, obviously. With this strategy, you can maximize your profits by using risk management wisely, a subject I will also address later. In addition to other advantages, in this video I also talk about the security of your equity when investing in Forex.



Learn Forex is easy?


As I’ve already commented, in order to learn Forex you need knowledge and skills a bit deeper than the ones needed for stock market investments, for example. However, initially you do not have to be an expert on any subject. Even if you already have a reliable broker and a proper structure, with the daily operation you acquire the necessary practice.

This structure is based on a digital trading system made up of robots and softwares responsible for trading operations, as we call Forex. After that, you will define your method, how many accounts and with which accounts will operate. This is basically the structure of a novice trader. Basically, the most important thing is to be constantly improving, learning, evolving and, above all, always with eyes on robots.


How much can I earn while learning to trade Forex?


Your average profitability can vary greatly and will depend a lot on how much capital you have to invest. There are two forms of income with Forex trading: from compound interest, which is multiplying your money; and the very multiplication of investments, which generates an average income. Before you know exactly how much you are going to make, you need to create what I call Financial Planning in Forex.

To do this, just answer the following questions:


What value do I want to invest initially?
How much do I want to invest per month?
What is my profitability goal?
How much do I want to accumulate?
What is my monthly / semi-annual / annual income goal?


Let’s look at a simple example. The other day a student asked me: “Marcello, is it possible to earn $ 10,000 a month trading in Forex?”. Yes! If you have $ 200,000 invested, simply make that amount yield an average of 5% a month. It turns out that in this market, just as the gains are right, so are the losses. Therefore, you should also take into consideration your risk tolerance, which in Forex is known as drawdawn. And it is on this important detail that I want to draw your attention to the next step.

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