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How to make money on Forex | Is it really possible? | Complete guide

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In this guide we will discover  how to make money with Forex  through 10 excellent tips that will help us invest profitably.

What is the Forex? It is a virtual market where the main currencies of the world are traded daily. In terms of trading volume, it is the largest market in the world, with more than 6,000 trillion dollars traded every day.

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We are talking about an OTC (Over The Counter) market open 24 hours from Monday to Friday, with excellent profit opportunities derived from the innumerable possibilities to invest every day.

How to invest in Forex? Through regulated online brokers specialized in currency trading, such as eToro and LiquidityX . We’ll take a better look at these two excellent middlemen over the course of the guide.

How to make money with Forex? Here are 10 great ways to invest profitably in the forex market:

📚

Study the markets

🥇

Choose the best broker

Activate a demo account

💸

Define the capital to invest

🎯

Select the currencies to trade

💰

Calculate your earnings

🏆

Adopt a winning strategy

Consider the economic calendar

💬

Confront yourself in the forums

🧠

Manage psychology

How to make money on Forex

1. Study the currency markets

The first step to follow to make money with Forex is to study the dynamics of the market, to be able to predict and invest successfully.

The  currency pairs move following a dynamic quite clear deductible with a good ability to correctly analyze charts.

Therefore, we need a solid theoretical basis on which to start: the eBook LiquidityX  is what we  should . It is a completely free and clearly written digital guide, which explains from A to Z how to invest (and earn!) With Forex.

What makes the difference are the many practical examples that will greatly help the trader to successfully trade the best currency pairs.

2. Choose the best broker

To access the currency market, you must choose a Forex broker and activate an account. It is a virtual market, so it is necessary to contact a specialized intermediary.

How to recognize a good broker? Simple, just check that it has these characteristics:

  • European license
  • Free demo account
  • Spreads bajos
  • Absence of fixed commissions
  • Customer service in Spanish

These are the basic conditions that distinguish professional brokers from low-quality ones.

Therefore, it will be appropriate to choose the ideal platform based on specific characteristics. Here are some examples.

Do we want to invest with a Metatrader? Then LiquidityX  is the best option for us as it has a perfect MT4 for Forex.

Curious about investing automatically? In this case, eToro has the Copy Trading system that will allow us to copy (automatically!) The trades of other expert traders!

Do we want low and competitive spreads? In this case, Markets is the best solution, since its spreads start at 0.5 pips, among the lowest in the industry.

These are just a few examples, the best way to understand if a broker is right for us is to practice in a demo.

3. Activate a demo account

The demo is an active virtual money account , which allows investors to practice without risking anything.

It is a perfect way to meet the broker and try it first hand. The demo faithfully replicates everything that happens on a live account, making it particularly useful for testing trading strategies  or the characteristics of each platform.

How to activate a Forex demo account? You simply have to complete the registration by providing an identity document and proof of residence, then you must choose a username and password and as soon as our account is verified, we can continue with the download of the demo.

These steps take just a few minutes and above all, there are no costs to incur or make deposits: the demo account is always free.

4. Define the capital to invest

The choice of capital to invest in the Forex market will be a crucial step as it will allow us to guide our operating strategy.

To date it is possible to activate accounts even with a  few tens of euros , but we need to clarify some aspects.

If we want to start investing with 100 euros, for example, we can do it easily, but don’t expect big profits! Forex is a solid and safe market , it is useless to sell smoke and promise stellar returns for a small capital invested.

Different speech if we want to deposit a few thousand euros: in this case our strategies can also be optimized to obtain interesting monthly income.

How much money do you need to invest in Forex? Let’s find out the different options with the corresponding brokers.

  • From € 10 to € 100: small amounts of money, perfect for beginners and discover what it means to trade currencies in real time. The broker that offers such low minimum deposits is XTB .
  • From € 100 to € 200: in this case it will be possible to implement some scalping strategies, on secure and certified platforms such as eToro  or  Avatrade .
  • More than € 200: trading with minilots even a similar amount can give good satisfaction, also allowing us to diversify. LiquidityX  requires a 250 euro minimum deposit, perfect for these needs.

5. Select the currencies to trade

The Forex market is based on the main currencies in the world, so it is necessary to choose the best ones and trade them on our Trading platform.

An important clarification:  in Forex, currencies are traded in pairs. Therefore, we must take into account the correlation that is created to take advantage of it to our benefit.

Generally speaking, most operations are carried out in the following currencies:

  • Euro
  • Dollar
  • GBP
  • Yen

The crosses between these currency pairs are called ” major “, that is, the most traded Forex currencies in history. Here are the main ones:

  • Eur/Usd
  • Usd/Jpy
  • Gbp/Usd
  • Usd/Chf

These 4 currency pairs are responsible for 80% of all trading volume that occurs every day on Forex.

We recommend starting investing from the best because they are very liquid , offer low spreads and are perfect for successful graphical analysis!

6. Calculate your earnings

If we want to understand how to make money with Forex, we must necessarily have a clear understanding of how to make a profit.

The best brokers allow you to trade with financial leverage, thus dividing the minimum trading lot. To better understand this concept we must first clarify some concepts.

Batch

When we trade a currency, the standard unit is the lot, equivalent to 100,000 buy / sell contracts. How much is a lot worth? We must compare it with the pips, the unit of measurement of Forex.

Pips

This is the minimum movement of a currency pair, which can be observed starting from the fourth digit after the decimal point.

Example: Eur / Usd goes from 1.2355 to 1.2356, thus moving by 1 Pip.

Financial appeceament

This is a multiplier that allows you to invest in markets with more capital than we actually have in our account.

The maximum leverage in Forex is 1:30. This means that with an account of € 100 we will operate as if we had € 3,000

How to calculate profits in Forex? We must consider that each pip moved, trading with 1 lot, has a monetary value of € 10. Here is a summary:

BATCH

PIPS

MONETARY VALUE

1

1

10€

0,10

1

1€

0,01

1

0,10€

We suggest taking this table into account when investing, to facilitate the calculation of the profits obtained in Forex.

7. Adopt a winning strategy

If we want to apply a profitable Forex strategy we must first understand what type of traders we want to be.

Scalper? DayTrader? Or maybe invest for the long term? Based on our choice, it will be easier to choose an investment strategy adapted to us.

Below is a table with which the  most used Forex strategies are considered  , divided by type of investor:

TIMEFRAME

STRATEGY

COST EFFECTIVENESS

Scalping

RSI

⭐️⭐️⭐️

Scalping

Moving average

⭐️⭐️⭐️

Day Trading

Price Action

⭐️⭐️⭐️

Day Trading

Fibonacci

⭐️⭐️⭐️

Long-term

Elliott waves

⭐️⭐️⭐️

Tip: any strategy should always be tested on a demo account. Spend some time practicing virtual money, not necessarily € 100,000. It is more convenient to open a demo with an amount of virtual money similar to when we are going to operate with real.

In this way it will be easier to verify the effectiveness of the strategy and optimize it based on the Money Management that we will actually use in a real account.

8. Take into account the economic calendar

If we want to make money with Forex we must necessarily consider elements of  fundamental analysis , through the economic calendar.

Every day on Forex news is published that will affect the trend of the market and specific currency pairs.

Some examples? Interest rates, GDP data, unemployment, and more are events that can affect the currency market.

The suggestion is to always keep the economic calendar open  and avoid entering the market near a news release, volatility would be high and difficult to manage.

If we have   active Expert Advisors it is better to deactivate them and then restart them when the market has calmed down.

9. Discuss in the forums

Are there   valid Forex forums full of cool ideas? There are few but some solutions are helpful.

Many beginners turn to forums for advice from financial experts , “easy” tips for making money on Forex and other markets.

It goes without saying that blunders are often made: on forums where one email is enough to sign up, there are a lot of braggarts hiding behind the avatar.

The best solution? Join the eToro Community , a virtual meeting place with thousands of investors from around the world. All of them are verified users, since to register you must complete the registration process in its entirety with:

  • Identification card
  • Proof of residence
  • Always visible performance
  • General information on the notice board

In this way we will know who we are dealing with and it will be much easier to interact with  true Forex professionals , since their operations are public.

It is no coincidence that eToro defines itself as the ” social trading ” of finance:

10. Manage psychology

How to make money in Forex constantly? One of the secrets is undoubtedly the ability to better control the  psychological  and emotional aspect .

Even an inexperienced person can profit from a Forex trade launched more or less randomly. What makes the difference is the ability to consistently close positive trades.

To reach this level, in addition to all the aspects described above, we also need an excellent ability to manage our mind.

Often the most common emotions among beginning traders are two:

  • Anger:  when we close a negative trade
  • Euphoria: after a good trade

Both aspects run the risk of making us see reality in a distorted way: we always need balance and a   clear trading system to respect.

It will be important to always enter the Stop Loss, establish the Money Management to follow and set a Take Profit in each operation. In this way we will reduce the weight of the emotional component, since everything will be pre-established.

To better train this aspect, it is advisable to  train with a more experienced manager. It is useful to request the assistance of LiquidityX specialists, who will support us in our investment activity, with useful advice and suggestions:

Final notes

In this review, we have found out  how to make money from Forex through 10 great tips to follow every day.

There is no magic formula to make money every time, everyone who claims this is a scammer. On the contrary, there are very useful measures to improve our strategy and invest better.

If you follow the 10 tips listed in the guide, our Forex Trading experience will  surely start off on the right foot. It will be up to us to constantly improve and practice in the markets every day.

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