Looking to make (a lot) more money? Forex could be for you…
If you’ve got a head for numbers, good decision making skills and you’re ambitious about your career, getting into foreign exchange could be your true calling. But how do you break into the industry, especially if you don’t have much previous experience in a similar field?
Here are some top tips on how to start profiting via Forex:
What is Forex?
Forex, also known as foreign exchange or FX, is a global market where the world’s currencies are traded. Essentially, it’s the exchange of one currency to another.
Forex is the largest, most liquid financial market in the world – with turnover in excess of $5 trillion every single day.
How do you make money from Forex?
Currency values are constantly changing, with a number of factors affecting how much each one is worth (e.g. economic strength, geopolitics etc.)
Forex Traders will buy a currency that they think will rise in price and sell a currency they feel will depreciate in value.
For example, if they have Euros but feel the price is weakening, they might exchange these for GBP, which they have forecasted will rise in value. Then, when they go to buy Euros back, they will be able to buy more than they started with – meaning they’ve made a profit.
Although the fluctuations will often be quite small, these can become incredibly significant when large values are exchanged.
Where does Forex take place?
All trades are made online and are implemented by traders all over the world.
What’s more, the market is open 24 hours a day, five and a half days a week. Meaning no matter what time of day it is and what time zone you’re in, the market will be active.
Can anyone trade Forex?
You don’t need any formal qualifications to get into foreign exchange trading.
However, to maximise your earnings, you will need to fully understand how the market works, as well as how to use the latest technology, Forex trading platforms and terminology.
If you don’t know your spot market from your forwards and your futures market, you won’t last very long in Forex.
What skills do I need to trade Forex?
Although this type of trading is open to everyone, there are a number of key characteristics you need to succeed in foreign exchange.
Some examples of key skills for Forex Traders include:
- Excellent decision making
- Financial acumen
- Calmness under pressure
- Contingency planning
- Excellent analytical and forecasting skills
Why learn Forex?
There are many great reasons to get into foreign exchange.
Not only does it offer incredible cash flow opportunities on both short and long term strategies, it’s also an excellent way to achieve financial freedom.
Some great reasons to learn Forex include:
- Excellent earning potential
- Flexibility of work (with markets open 24 hours a day)
- Leverage availability
- International opportunities
- Low risk/low investment opportunities
Interested in Forex? View all Forex courses now.
