How to make money on the currency exchange rate: possible options, methods and recommendations
How to make money on the difference in exchange rates? The world does not stand still, there are various technological devices, new professions and ways to get money. Despite the negative image of earnings on the Web, as well as aggressive advertising and the imposition of various services, working and receiving money remotely, without leaving home, is quite real. However, it takes effort. This article will help you learn how to make money on the exchange rate.
About different ways
The article will discuss how to make money on the exchange rate. Below is a brief overview of everything connected with it. Two key ways are popular in the Russian market - Forex and binary options.
Both tools allow you to make money on exchange rates on the Internet, but they differ in the principle of their work. In the case of Forex, the client has more options for risk management, and binary options allow you to get more profit in a short period of time.
This is quite a controversial tool. On the one hand, it allows the trader to receive up to ninety, and in some cases even one hundred percent profit from his investment in just one minute. However, not all so simple. Over the same period, you can lose the entire amount of investments and end up with a round zero, money spent and nerves.
The principle of operation is simple only at first glance. You need to choose the direction where the price of one currency will be relative to another, for example, in one minute from the current time. But in order to do this, you will need to spend a lot of time on training, master technical analysis and many other nuances. You may have to switch to more long-term binary options, for example, from five minutes or even from several hours. The term of execution of contracts is called expiration. This is the time that is needed to close the transaction. The binary options market is an example of how to make money on the exchange rate on the Internet.
The principle of operation is similar to binary options, but there are some rules here. In general, "Forex" is designed for longer periods, as a rule, not exceeding one day.That is, positions are opened for several hours, less often - for several days.
By the way, it’s not so easy to transfer a position to the next day, you have to pay an additional commission for it. The main difference between Forex and binary options is less risky and less profitable transactions. By opening a position, you will not be able to get a big profit immediately or lose everything in a jiffy, but only pay a small commission, which is called a "spread."
If you are really interested in how to make money on the exchange rate, then special attention should be paid to where you are trading. There are a lot of brokers, but more than half of them are scammers, and it’s better not to get involved with them. If you see intrusive advertising that promises you millions almost simply and in a short period of time, then you should think about it. Most brokers use dirty methods to attract customers, and such advertising is not the main one.
Should be wary of calls managers. Most likely, they will offer any preferential terms, absurd bonuses, or they will lead your trade. Immediately refuse, as they are fraudsters, and in the best case you just take the time, and in the worst you will be convinced to invest a lot of money and, most likely, will not allow them to be withdrawn.Pay attention to the license.
It is especially good if the broker has both Russian and European certificates. Do not neglect the search engines. It is better to spend a couple of minutes on the sites of specialized regulators to check licenses than to lose money and a lot of time.
How not to fall for deception
In addition to the above calls from the broker and sly advertising, there are other tricks. You should be wary of various paid teachers who, for a hundred dollars and an hour of your time, will promise to teach you how to make money from the difference in exchange rates. Do not get fooled by tricks scam. There are, for example, various "magic" signals. These are supposedly accurate forecasts of courses at a specific point in time. However, practice shows that this is impossible. Otherwise, the whole industry would not make sense, since the terms would be millionaires. Yes, and the creator of such a system would not sell it for a few tens of dollars or a couple of hundred rubles, since it would be more profitable to make money on it yourself, hiding as long as possible. As for the usual price forecasting, it is quite realistic, but it requires long and difficult training.
How to make money on the exchange rate?
First you need to be able to choose a broker and adequately perceive the information. Further it is necessary to master the technical and fundamental analysis. Perhaps this is the main secrets of earnings on currency fluctuations. Training options can be different, however, as mentioned above, beware of scammers. If a person wants to get a certain amount for lessons, then this does not guarantee that they will help you.
Only a small percentage of paid gurus are really able to help you, but such people, as a rule, take their acquaintances and relatives as students or ask for a lot of money, which is quite logical. For the time spent, the pros can earn more than if they teach someone, especially from scratch. The best way to understand how to make money on the exchange rate is to read various information on your own. It will not be superfluous to practice, for example, on a virtual account.
This is the best way to cool the fervor of a novice trader. When a person performs at least a hundred operations, then, most likely, an understanding will come that he has little knowledge of this activity.Demo accounts allow you to trade virtually. In other words, you have real quotes for currency pairs, but you won’t lose your money and you can practice. Earn on a demo, of course, also fail.
It is recommended to use such accounts for training, testing strategies and familiarization. Of course, working with real money, a trader perceives the process differently, because a psychological moment begins to manifest itself, such as excitement or, conversely, the fear of losing money. However, the longer you stay on demo accounts, the better for you.
Everything related to charts, various indicators and other useful things belongs here. On the web, a huge variety of different useful literature on this topic. There are whole free schools, all kinds of trading chats and forums, as well as useful educational videos that you can watch for free. Without the basic fundamentals of technical analysis, it is better not to even begin to engage in trading. Candlesticks, various price corridors, trading volumes, indices - you will most likely need all this.
It is impossible to master technical analysis, therefore it is necessary to develop constantly. As for at least the appropriate level, then you will need from six months to a year, but the exact dates will depend on the specific person. There are people who mastered trading for more than five years and only then came to a stable profit. It is important not only to wonder about how to make money on the exchange rate, but to really do something for it. The fact that the price is wavy, and the market is constantly in dynamics, is not so difficult to understand, but it is difficult to give an adequate forecast for at least the next hour. This will require considerable effort and perseverance.
This item is equally important and necessary. As well as technical analysis, it gives an answer to the question of how to make money on currency fluctuations. The essence of fundamental analysis lies in the news. Every hour in the world dozens of iconic economic events occur that affect one or even several currency pairs. If you have decided to work with stocks, then you should pay attention not only to the general financial news of a particular state, but also to financial statements, as well as incidents of the company whose bonds you want to buy.
It is important to learn to adequately interpret an event, to understand when and how to respond to the information received. For economic news there are separate websites and Internet portals where traders can get useful and relevant information completely free of charge. Fundamental analysis and technical can contradict each other. This is a normal phenomenon, especially when strong events appear, for example, at various summits and forums. During such periods, it is better to postpone trading for a couple of hours, and not only traders, but also the brokers themselves are insured against this. They can close the site or reduce the payment of transactions. It is unprofitable to go broke to anyone.
What is important
In fact, you do not make real deals. All this is a game inside a broker, but he gets real prices for currency pairs from special firms. It is important to know that your operations and transactions of other traders do not affect the real value of currencies. In fact, you make bets in much the same way as it does with football or another event, only the broker acts as a bookmaker.
Many present it as real trading, but the real market requires hundreds of thousands of dollars.Currency exchanges, as a rule, are located abroad or require a special agreement of an individual with a bank. However, the knowledge and tools that you can potentially get from more affordable brokers will help you move on and you can use them where you want. You can try yourself on the stock exchange, on the derivatives market, in trading real futures, in investments. Fundamental and technical analysis will work everywhere.
Psychology and Trading
This is probably one of the most important and key points. The most important thing is to be able to distinguish between a ridiculous game and serious work. With this approach, any business will go well, and not only trading, but it is about him. Do not be lazy to read special forums, literature, various publications, learn to draw trend lines, analyze charts and news. As for the excitement, it kills all the work and becomes one of the main obstacles to your success. Remember that trading is not a casino, not a roulette or a magical way to make money. This is the same work as any other.
Here, as elsewhere, some get good money, and the rest, at best, remain in the same place where they started from. You should not try to “recover” losses or increase investments at lightning speed.It is important to dose the risk, try to limit the potential loss, do not take any steps if you are not sure about them. However, you need to be able to overcome your fear. Someone has everything exactly the opposite: in the place of excitement comes daze and fear of opening a deal. So, you need to understand yourself, gradually increase investments. Deposit should not cause mental discomfort. In other words, you need to start with the amount that you do not mind.
Can I make money on the exchange rate? The answer is yes. However, you can lose big money. Everything will depend only on you, your efforts, time, theoretical and practical part of the work. Trading is a big deal. If the soul does not lie in this occupation, then it is better not to torture yourself.
And if you are really interested to watch the price, analyze various currency pairs, read the news, make forecasts and improve your skills in this area, then over time you will start making good profits. It remains to wish novice traders good luck, but in this area it is better to think a few times before starting to do something.