This question can be paraphrased: does a job with a good salary exist? Yes, it exists. But to reach a high salary level it is required to work in a company for some time in order of getting into to the root of the matter. On Forex this situation is similar. If you expect to gain profit on Forex market after a month of working – this means that you’re in deep illusion. If you understand this situation soon, you will lose less money. In my opinion, to bring oneself closer to profit making, it is required to pass through following steps.
1. It is required to overtake the elements of technical analysis.
2. It is required to learn a feel of danger and to learn all the situations when it is unreasonable to open positions.
3. It is required to be able to find the points of market entering with minimal risks. A free training account with virtual funds will be enough to pass trough these three steps. And it is required to operate it at least one month. This will allow to form a strategy, to detect its weak points. Treat a virtual deposit with consideration, as if it was a small real one.
4. It is required to modify a nature of your behavior and to form new one. To enhance a trading strategy.
On this step you will need a small real account. In my opinion, a deposit that equals to 30% - 50% of your salary, would be enough. This amount will be enough to threat it quite seriously; meanwhile such a small amount would allow you to feel yourself rather comfortable with the exception of panics upon slight market movements against your position.
I strongly do not recommend opening a deposit at the expense of borrowed money; when you expect to double your deposit quickly and to return the debt. It is nearly not possible to get through such a psychological pressing. Furthermore, is you don’t possess a sum, required for deposit opening, doesn’t it mean that Life-Destiny itself doesn’t desire you to do it? Who does want to go against his own destiny?
This isn’t a courage, but a stupidity.
5. It is required to store specific experience.
Experience would allow you not only to successfully find a good point of entering and closing a position, but also to correct your errors with minimal losses or small profits. In addition, sometimes there are arising such situations when you intuitively see familiar models (patterns) of market and you unmistakably take a correct decision even without a deep technical analysis of the situation.
6. It is required to accumulate a rather big deposit.
Initially it is rather possible to double your small deposit while working on Forex market. If an expected market movement in 100 points corresponds to a profit of 20% of your initial deposit, in order to double your deposit, you will need just 500 points of profitable deals.
This situation is rather popular, as the cost of 1 lot is close to a sum, corresponding to 20% of a small deposit. From economical and mathematical points of view, such state of affairs is connected with super-risks (and superprofit), but it is rather acceptable, if the deposit doesn’t exceed single remuneration. But when it is talked about more essential amounts, then entering a position with amounts exceeding 10%, will be fatally dangerous for your deposit, and in a long-term outlook will lead to a catastrophe.
Thereby the profitability of working on Forex market, with optimal correlation of profits and risks, equals to 10% - 15% of your deposit per month.
Though, if you proceed to the 6th step of Forex trading, you won’t feel any problems with lack of money on your deposit. There are many prosperous people in the world desiring to increase their capital. If you will really possess a profession of exchange trader, you won’t be left unnoticed. A high-level trader will be one of the most claimed specialists on labor market, until there would exist
Good article. Many people make money online on forex. Its really easy money if you know what you should do.