If you are looking for ways to make money online, then you should go for currency exchange trading. You might have heard about currency exchange trading through its other names, including forex trading or FX trading.
There are people out there who like to dismiss forex trading as a type of scam. However, the truth of the matter is that there are many people out there who have been making money doing trades. However, only very few are doing trading as a full-time job. The rest are doing it as a hobby to earn extra income.
How much money can you earn doing trades? That really depends on how aggressive you are. But if you are a reasonable trader, you can expect to earn 20% of your money within six months time. While it’s not enough to replace your current income, it is better than having your money lie in the bank, or keeping it in a box.
The good thing about forex trading is that you don’t have to be an expert at it. As a matter of fact, you don’t even have to study the charts as most people will tell you. There are platforms out there like eToro that allows you to do social trading.
What is social trading? It is basically copying the trades of other traders who are, we presume, more experience than you are and have been earning more money than you have been.
We signed up for an account with eToro and invested $1,000 and copy traded one of our friends. That was six months ago and we have proven to ourselves that it is easy to earn 20% of $1,000 or $200 within six months time. We cannot even imagine turning that much with a savings account in our bank.
But we do realize that we cannot do copy trading forever, and we know that if we are going to make a stable income out of forex trading, we have to train ourselves to become real traders. This entails studying the charts of different currency pairs and doing a technical analysis, while determining when a currency pair will make a breakthrough and rise in price for some time.
We really do not need to tell you, but just like any type of trading, your profitability depends on your ability to buy low and sell high. You have to know when a currency pair has reached its lowest low so you can buy it, and you have to know when it has reached its peak so you can sell it.
Developing trading skills takes time but thankfully, there are people out there who are willing to coach newbie traders and most of them are eager to do it for free. Of course, you can always pay for someone to coach you in trading. They will look over your shoulder and see how you have been doing your technical analysis and encourage you, or discourage you, from doing trades depending on the conditions of the market.