The financial world has seen its fair share of turbulence over the past few years, and nowhere more so than in the currency markets. Just take a look at what has happened to the British pound in the wake of the EU referendum – of course, this looks of the face of it like a disaster for the Brits, but those who were playing the currency markets smart and used their pounds to purchase a fistful of dollars (or perhaps we should say Euros) immediately prior to the vote were smiling all over their faces afterwards.
It’s an extreme example, but it gives a perfect illustration of how there is always money to be made on the forex market if you understand the dynamics, correctly interpret the indicators and have a generous portion of good luck.
There are no end of trading apps that you can download onto your smartphone and you can use these with your choice of Trusted Forex Broker to start trading in the blink of an eye. But before you leap in feet first, remember the yin and yang of the markets. For every trader who gets it right and makes a profit, there are two, three, even ten whose trading careers come to an abrupt end before they have even started, due to bad decision making and a lack of strategy.
Do you have to be lucky or good?
There are those who argue that the forex market is so risky and volatile that you would be better off putting your money in a suitcase and spending a weekend in Vegas. However, that is to ignore the factors that drive the many shifts in the currency markets. For sure, they are complicated, and some might even work counter to one another, making the challenge similar to that experienced everyday by meteorologists trying to come up with a long range weather forecast.
The point is, though, that the indicators are there, and there is more than blind luck involved, as those archetypal city traders with their Rolex watches and Ferraris can testify!
Learn the ropes
Having said that, there is a big difference between saying “you can make money” and “you will make money.” Successful traders know the nuances of the market and understand the signals, tools and indicators. To share their success, you need to know their trade.
Don’t even contemplate trading with real money until you have got your head around the most significant indicators. These include moving averages, MACDs, RSI, Bollinger bands and many others. If the phrases and acronyms sound like a foreign language to you, your first step should be to start reading articles and taking as many tutorials and online courses as you can find.
That will give you a good grounding, and allow you to start constructing your basic trading strategy, which you can put to the test in a demo account. It might sound like a laborious waste of time, but the reason more than 90 percent of new traders end up losing money is that they start trading before they are fully prepared.
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