There are two reasons that keep people from investing in the forex market. Firstly, they consider forex trading too risky. That’s true. Forex trading contains really high risk, only when you don’t have a good management plan and discipline. The other reason is that they keep wondering “Is forex really profitable?” Can we really make money from trading? Well, we will show you the answer here today.
Yes, of course forex trading is profitable. If not, why are thousands of people still doing it?
The reasons that you failed or still are failing in trading can vary. However, the most common explanation for you failure is the lack of knowledge and experience. Nowadays, there are thousands of forex education websites online. Pick the most popular ones and start learning now. No amount of knowledge is enough.
The lack of experience can be solved in two ways. First of all, you can open a forex demo account to practice trading. Every forex broker has demo accounts, and of course all of them are free. You can practice trading on demo account as long as you want until you’re confident enough to enter the real market.
If you’re afraid that demo account doesn’t give you the real-life market conditions when trading, you can always try out real account right away. Of course, real account will cost you money. However, there are some brokers that let you open an account for as low as just 1 dollar. You can deposit a little bit in, consider it a fee for studying, and then practice as long as possible.
In the forex market, people make money from forex trading thanks to the difference in the prices of currencies.
We will explain it as simple as possible. Currency exchange means you buy or sell a currency with another currency. The ratio between their values rises or falls over time because of the changes in the market conditions. For example, on Monday, you buy Euro with US dollar. You pay 1600 dollars for 1000 euros. On Tuesday, you see that the ratio between their prices has changed. Now, you sell 1000 euros for 1900 dollars. In the end, you have earned 300 dollars.
That’s basically how you make money from forex trading. By predicting when the price will rise or fall, you can know when to buy or sell a currency.
Like I said before, success in forex trading requires a huge amount of knowledge and experience. What if you don’t have time to learn or practice forex trading? Well, there is a faster way to make money in forex for the investors.
You can make money in forex faster by using the feature copy trading. Now, your role is not a trader anymore but instead an investor. Copy trading means you go to the copy trading platform, choose a forex trader, and copy all of their trades. Orders in your account will be executed exactly the same as their account. If they make profits, you also make profits without actually trading. How much you earn depends on the ratio between your deposit and theirs.
For example, if they deposit $5000 and you only deposit $1000, when they earn $700, you will only make $140. To know which is the best copy trading platform, click here.
Now you know for sure is forex really profitable or not. Don’t be afraid anymore. Let’s start trading today.