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How Can Forex Trading Make You Money?

Can you really earn money from Forex trading? Most will probably answer “no,” but if you understand how Forex trading really works, you can actually make a profit out of it.


While it is possible to make a profit out of Forex trading, the odds are all against you, especially if you don’t take the time to plan and prepare to trade. Even for a skilled Forex trader, the odds may still not be in your favor. Making big money in Forex trading may be something of a gamble, but once you have a successful trade, the rewards are incredibly big as well. If you want to try your luck in this trillion-dollar exchange market, you might want to look at this great dummies guide to Forex trading.


But first, you’ll need to learn how you can make money from Forex trading.


Making Money From Forex Trading


It is possible to earn money from Forex trading and make it a source of regular income. But to make that possible, you’ll need to put in a considerable amount of capital and start trading regularly.


To make money from Forex trading, you must first study how the market works, how to trade currencies, and develop a proven trading strategy. The concept behind making money from Forex trading is to buy low and sell high.


Say for example, you have a $1,000 capital on your trading account and the currency pair you want to trade with is EUR/USD, which has a current exchange rate of 1.25. This means that for every €1 you’ll get $1.25. Now, you predicted that for today, the euro will rise against the dollar. With that said, you decided to buy €800 euros using $1,000. Your prediction becomes correct and you see the euro rises from 1.25 to 1.26. You can now decide to close the trade and exchange the €800 euros you bought to dollars again, which will now be $1,008, making you earn $8 from that trade. Of course, the larger your capital is, the more profit you can earn from each trade.


It takes time to develop skill and experience to trade profitably in the Forex market. If you are willing to give it time and are prepared to trade for at least five to seven hours a day, it is possible to earn a living from Forex trading.


The Forex market has an average of over $5 trillion in trading value. It is the largest marketplace in the world, which entices Forex traders from around the globe. The risks are high, but if you do it well and are patient enough, you can earn big bucks from it.


You can become a profitable trader in Forex but it requires discipline. Here’s how you can do it.


  • Study About Financial Markets – Before you even start trading, you must first study the different types of financial markets where you trade. Aside from trading currencies, the Forex market also allows you to trade for shares, indices, and commodities, all of which can also yield profits for you.
  • Find A Good Broker – If you managed to find a good broker, you’ll have more time to develop Forex strategies and analyses. You’ll have to allot time to research before you commit to a broker. Your broker must be compliant to the rules and regulations set, and find out if they are offering the currency pairs that you want to trade.
  • Always Start With A Demo Account – One of the reasons why you need to find a good broker is because they offer a demo account for you to use to start trading. A demo account will allow you to trade paper money instead of your real capital so you can have a good grasp of the whole trading process. Aside from that, demo accounts also give you access to important information, which your broker also provides to successful traders. Once you feel like you are ready to start trading for real, you can now switch from a demo account to real funds.



What makes Forex trading really enticing even for a beginner is that it gives you the opportunity to earn money without having too much difficulty. Forex is such an exciting market that offers a ton of trading opportunities for you to earn money.


The desire to earn money and become successful is natural, but don’t let this overwhelm when you are trading in Forex. It takes time to learn how the Forex really works and compile a consistently successful track record. A lot of beginners lose their money because of their hasty nature. Only 15%  to 20% of the traders in the Forex market are successful, while others lose their money because they got greedy. As a beginner, you need to focus more on learning than earning, because if you trade hastily, you’ll only see staggering losses.