With the development of technology in the modern world, anyone has gained access to the Internet. It can be used not only from your home computer or the Internet, but even with a smartphone or tablet!
The Internet is primarily created in order to facilitate the search for the necessary information, as well as to maintain communication with other people who are on the other side of the globe.
But even 10-15 years ago, people could not even imagine that the global network would open up new opportunities for earning money! It became possible to work not only remotely from home, but to receive passive income, while not even performing any special actions.
On my site you can read about many ways to make money online. But the most profitable and promising is trading in financial markets. That is what I’ll tell you today. The article will discuss:
- about brokers,
- Forex
- CFD,
- binary options,
- automatic trading
- trading advisors and robots,
- trust management at Forex,
- PAMM account,
- and much more.
Brokers
We begin with brokers, since not all newbies fully understand who they are. And this is an important element of trading in financial markets.
Brokers surround us not only in the field of trading in financial markets. Every person throughout his life, even if only once, but used the services of these companies. Surprised? The fact is that they are so densely entrenched in the sphere of our daily life that they have become very popular and valuable. So who are these?
Brokers act as intermediaries between the client and the company. They can also perform intermediary functions between two customers who are individuals.
Such companies operate legally, the activities of which are fully regulated and controlled by several legislative acts.
Why did brokers become so popular in modern society? The fact is that we really appreciate time. And sometimes it takes a lot of time to find the right information, which we may not have. Therefore, people impose such duties on intermediary companies that take a certain percentage of their assistance.
The scope of their activities can be diverse (not only Forex and binary options, as we are used to):
- financial - the activities of such companies are fully or partially related to finance.
- non-financial - real estate, jurisdiction and other areas.
It is also worth mentioning about the form of ownership. It’s rare to meet a broker as an individual. For the most part, these are legal entities, companies, consulting firms that operate on a common tax system.
Regardless of the field of activity, brokers perform the role of intermediaries. Their responsibilities include actions to speed up clients' tasks, assist in the collection and execution of necessary documents and much more. Financial intermediary organizations help their clients acquire shares on the stock exchanges, open deals for buying and selling currencies.
You and I are familiar with the concept of a broker, as a company that allows you to trade in the Forex market and binary options through a special trading platform. In addition, they offer certain trading conditions, training courses and free round-the-clock advice.
Forex Brokers
So, you and I smoothly approached what Forex brokers are. Thanks to the development of modern Internet technologies, trading on the Forex markets for private traders has become available. Now you do not need to have a large start-up capital to open an account and access the foreign exchange market.
Previously (another 20 years ago), only large financial companies could afford to enter such a market and make money on the difference in exchange rates. Now it is enough to have 100 dollars in the account to open a deal and get your first profit. And all this is the merit of modern brokers!
These are companies that are intermediaries between traders and the foreign exchange market. A simple person can not just enter the market. To do this, he needs to have with him the amount of the initial capital of 100 000 dollars. And it will be difficult for an individual to get access to such a large international trading platform.
Therefore, we need brokers. They take on all the difficulties of opening deals for a small fee (commission). Thus, traders as a simple individual can easily trade on the stock exchange, even with small contributions.
Any operation in the foreign exchange, stock or commodity market can be performed only directly through brokers. There is no direct access for individuals.
To start trading, the first thing you need to do is register on the official website of the broker. This is a simple procedure that does not require any serious action from you. Fill out the form with your full name, email address, mobile number. After necessarily required verification procedure in order to identify your identity.
Newbies often get scared of this, but there's nothing wrong with that. You send scanned copies of your passport and other documents. This is necessary in order for the security service to make sure that you are a real person, not a fraud. In the future, this procedure will protect your capital from hacker attacks.
After that you need to download the trading terminal MetaTrader 4 or 5. Almost all brokers provide access to the market through this platform. You can download it for free on the website of the broker in the relevant section. In addition, there are mobile versions that allow you to work even away from home.
After that you do market analysis based on technical or fundamental analysis and make out an order to buy or sell one or another currency pair. How to trade profitably - we'll talk about this a little later.
Additional broker functions
The main duty of Forex brokers is to provide quality access to the market and allow opening trades, making a profit in case of a correct forecast.
But there is additional functionswhich though are not obligatory, but will be favorably perceived by clients. They are surrounded by:
- news feed;
- analytical reviews;
- The economic calendar of all economic events;
- training and useful materials for new traders;
- free access to trading indicators and graphical analysis tools in the terminal.
Brokers Earnings
Often in the network you can find questions about how much do brokers earn? This is a rather slippery topic, which again will directly depend on the degree of reliability of the broker. Forex brokers, as they are intermediaries, charge for their services in the form of a commission. It is deducted from you from each open order. It is also called spread.
Whenever you open a trade, it will immediately be in the first seconds in the negative for the amount of spread specified in the trading conditions. This is the difference between the purchase and sale price. Spread can be fixed and floating.
Companies often use this condition to attract as many new customers as possible. They simply lower the spread. This is especially advantageous to scalpers, to whom each item counts.
There are several types of modern brokers:
- Kitchens
These types of brokers are able to earn not only on spreads, as mentioned above, but also on the deposits of their clients. Brokers even difficult to call them. They do not bring your transactions to the interbank market. All customer funds remain within the company and they do not go beyond.
Therefore, there are often cases of fraud on the part of brokers. After all, it is beneficial for them to lose their money. To do this, fraudsters can go on a variety of tricks:
- slips and hangs;
- "technical problems" on the trading platform;
- constant delays in the withdrawal of profits;
- substitution of market quotes.
There can be a lot of such sticks in the wheels, it all depends on the “flight of fancy” of the broker itself.
- Brokers.
These are reliable companies that actually carry out the withdrawal of your funds on the interbank market through liquidity providers. In this case, the company is absolutely no difference, their client trades profitably or at a loss. He will still receive his profit in the form of commission. But in the first case, if the trader will constantly trade profitably, the broker will simply go bankrupt.
In order not to be deceived and get caught in the hands of fraudsters, it is best to initially find a company that will be reliable and high-quality. Believe me, there are such people on the market, even despite such a huge abundance of fraudsters and cheaters.
First of all, pay attention to the availability of a license and a high herd of work (not 1-2 of the year, but 10-20 of years). Be sure to compare the trading conditions, otherwise it may be that you are trading with a scalping strategy, and the broker has an excessive spread.
Forex
Go ahead. We dealt with brokers, now let's get to what Forex is and how you can earn money on it. The following material will be a kind of step-by-step instruction for beginners.
Forex - This is the foreign exchange market, where its members buy / sell currencies. You, too, at least once in your life had the honor of being a member of it, when you changed the rubles in a bank for dollars. Have you noticed that the course is constantly changing. Sometimes you can make good money on this. For example, you exchanged money at the rate of 60 rubles for 1 dollar, and later the rate rose to 65 rubles. Selling a dollar, you will find yourself in the net nailed on 5 rubles.
Naturally, in the Forex market, in addition to the dollar / ruble pair, there are hundreds of other currencies that traders from all over the world earn every second! Daily turnover of the Forex market is one of the largest. The same stock market noticeably lags behind in this parameter.
In general, huge money is spinning here, which is hard for us even to imagine. But we, too, can become participants and grab even a small part of this turnover.
Anyone without exception in the modern world can become a trader. But not everyone will succeed and be knocked out in the lists of millionaires. Why only 80-90% succeed?
It's all about the right approach and mood. There really are a lot of people leaking money. But all because they hoped for quick and easy money. And here this does not happen! We need tactics, strategy, discipline, mental attitude, composure, constant work on oneself, the ability to competently manage capital, and so on.
How much do they earn on Forex?
Why are people so eager to get into this risky area of online money? After all, there are much less dangerous professions, where you can also earn good money.
The whole thing is in the potential earnings that you can get. They do not have a ceiling, you can earn exactly as much as you want!
Profession trader can really allow you to become financially independent people. But it is important to take into account some points. Therefore, I want to immediately bring you down from heaven to earth and acquaint you with the reality in this area. This is important for your future success. The faster you understand this, the faster you start moving in the right direction!
Trading psychology is an important science that takes up half of your future success. It is necessary to learn to keep emotions under control, to be cool, to observe strict discipline in work.
Why is that? Newbies often lose their vigilance after the first big profit. They become euphoric and begin to think that the gurus of trading are themselves. And after that errors, losses, plum deposit and so on begin.
If you are told on the net that you can earn 100, 200, 500 or even 1000% profit per month, or even a week, then run away from such scammers away. They are going to give you a "super strategy", buy a "100% -profitable indicator" and so on.
According to statistics, an experienced successful trader earns 10-20% per month from the amount of his deposit on the trading account.
And then you probably think - why so little? Where are the millions you talked about at the beginning? But the thing is that such traders have millions of dollars on their trading accounts! Therefore, they earn large sums within this percentage.
Well, if you deposit 1000 rubles (as many newbies count on it) and you will wait. that they suddenly turn into a million in one day, then it’s better to go to the casino right away and deposit this money there!
The larger the deposit, the greater the profit!
You need to trade only in the framework of money management. That is, for one transaction we do not recommend investing an amount in excess of 5% of the deposit amount. After all, there are both profitable and unprofitable trades in Forex. And such money management will allow you to “stay afloat” for a long time even in the case of a series of failures.
The main task of the trader is not only to preserve his capital, but also to increase it.
At first, you should not be concerned about the amount of profit. And only the development of its profitable strategy. If it is, then later it will be possible to safely increase your deposit. Well, along with this, your earnings per month will also grow.
Millionaires got their fortunes also not in one day. They went to this for years! They also lost their fortunes, but then they learned from their mistakes and perfected their trading tactics, until it began to bring stable positive results.
How to start a newbie
If earlier the profession of a trader was inaccessible to many people, now, thanks to modern Internet technologies, anyone, regardless of financial status, can start earning in financial markets. Even with the whole 1 dollar in hand!
Naturally, the profit from this amount will be negligible. But the opportunity to practice and learn with minimal risk. It is not necessary at the first stages to invest in the amount of 500 dollars and above. After all, as practice shows, you still lose them.
Even experienced pros more than once poured their deposits at the beginning of their careers. But they did not perceive them as a tragedy, but as an invaluable experience that would allow them to learn from their mistakes and improve their trading strategy!
- Choosing a broker to trade.
The Forex market in Russia has only recently begun to be regulated by the legislative side. From the beginning of 2016, the Forex Act, which regulates all activities of companies and obliges them to undergo licensing and full inspection, will come into force. As a result, small companies, fraudsters and unreliable organizations began to leave the market. Only reliable and proven leaders remain. Since not every broker is suitable for verification.
Such giants include Alpari, Forex Club, Grand Capital, which have existed on the market for over 10 years. Alpari and at the time of writing the review celebrates its 20th anniversary.
- Training in trading and market analysis.
It is not necessary to go through paid tuition and spend money on courses from experienced pros. Now all information is online for free. Many experienced pros were self-taught. Yes, it will take much longer. But for free!
It is also possible to attend online webinars that are held by all large companies on a regular basis.
Use any opportunity to obtain such knowledge! There is no limit to perfection. Even experienced pros continue to learn throughout their careers! The market is constantly changing and improving. And you should be aware!
- Trading tactics.
Getting new knowledge is always necessary to consolidate in practice. To do this, there is a free demo account where you can conduct full-fledged trading, but only with virtual money. Great opportunity without risks to feel like a real trader!
After you need to come to grips with the drafting of your trading strategy. To do this, you need to understand for yourself what time it is more convenient for you to trade, whether you will be engaged in scalping (short-term trading), intraday trading (medium-term) or making deals in the long term.
The choice of timeframe, currency pair, levels of acceptable risk and profit will depend on this. You must learn to understand the market, determine the trend, the moments of its reversal and the entry points to the market.
The trader needs to decide on the type of management:
- Independent trading - you yourself analyze the market every day, charts, quotes, follow the news, catch signals to open trades and so on. In general, take full responsibility for yourself.
- Auto trading - all the above work will be performed for you by robots and advisors, that is, computer programs. Experienced pros often resort to this method to rest or free up time, shifting some of the tasks onto a computer program. If you already have a profitable strategy, then you can put its algorithm in the trading advisor. But you can not fully rely on such programs. Since they also make mistakes. You need to constantly monitor the work of the robot.
- Trust management and PAMM accounts - if you still do not trust computer programs, but want to make money on trading and do not have the proper experience and time for independent trading, then this type of earnings will suit you. It involves transferring your capital to another trader, who is a more experienced specialist. He trades your money, and at the end of its validity period, he gives you a portion of the profit agreed in advance.
There is nothing to do on Forex without a trading strategy. Trading will turn into classic gambling. Each transaction must be opened deliberately, on the basis of signals from technical tools, indicators, candlestick patterns, graphic analysis figures and much more.
There are ready-made strategies, some of them you can find on my site in the appropriate section. You can take them as a basis and supplement in the future as you gain new knowledge and experience.
Decide on the type of trading account. Brokers, depending on the needs and trading styles, offer traders several types of accounts. For beginners, Standart or Cent is ideal. The latter, by the way, perfectly replaces the demo. After all, trading for real money is significantly different from virtual trading from a psychological point of view. If you sit on the demo for a long time, you can lose the value of real money, which in the future will lead to a drain on the deposit.
Earnings in Forex is a serious business, the success of which depends on many factors!
CFD contacts
Trading in financial markets is possible in several ways, a kind of tools. There is a classic Forex, which I mentioned above. And more recently began to gain popularity and CFD contract. Translated from English, it stands for Contracts For Difference. That is the contracts for the difference in prices.
This tool began to gain popularity especially among binary options brokers. They were the first to decide to diversify trading for their clients. Although now this method can be found even at Forex brokers.
The history of CFD has been almost 200 years old, but today it’s about modern contracts that brokerage companies offer us.
What you need to first understand for yourself? This is over-the-counter trading. If Forex refers to the exchange, then here you do not go to the real market. Your transactions and investments do not make any volume in the financial markets. All deposits are kept exclusively within one broker. That is, you are working against it, and not against other market participants. Actually, like binary options.
The main mechanism of work is very similar to Forex. There are terms like spread, leverage, Ask and Bid prices and so on. In CFD contracts there is also no expiration date. That is, you have the right to close the deal when you see fit. As in Forex.
CFD is a kind of middle ground between Forex and binary options. If the first is more difficult for beginners, then CFD is a kind of second degree in growth in the career ladder of a novice trader. Most of them (like me), began their acquaintance with the financial markets with binary options.
In CFD trading, the same strategies, tactics, money management, hedging and diversification rules are the same as in Forex. Therefore, it will not be difficult for you to switch from one trading instrument to another.
CFD opening order:
- The trader determines where the price will go - up or down, based on his strategy and market analysis.
- then he chooses the size of the investment (the amount of lots).
- puts pending protective orders stop loss and take profit.
- leverage
Then it remains only to wait for one of the pending orders to be triggered, or to close the deal manually if the trader considers it necessary in the prevailing market conditions.
If on Forex it is possible to trade only currency pairs, then in CFD, access to currency pairs, commodities and raw materials, stocks and stock indices, cryptocurrency is open.
Binary Options
Well, finally we smoothly approached binary trading, another way to trade in financial markets. This is the easiest and most affordable way, the ideal option for beginners to learn how to trade and generally understand what the market, charts, price, currency pairs, and much more.
Binary Options - this is one of the youngest financial instruments, which appeared in Russia and began to actively develop only 8 years ago. Now there are almost no such people left who would not hear about BW. Moreover, everyone at least once (even purely out of curiosity) registered on the site, opened deals on a demo account. Or even poured deposits in real life.
Why merge it? Yes, because all newcomers are prepared for such a fate. Even the pros at the beginning of their career poured deposits. But they did not despair, but continued to go on.
Newbies make deals at random. After all, the process of trading in the BO terminal is so simple that excitement is often included. And this is the very first sign that you lose all the money.
No wonder binary games are often compared to casinos. And many unscrupulous brokers promote the earliest earnings in just 60 seconds (the famous turbo options).
But it is important to understand that this is as serious a business as Forex. You can earn money here, but you need to learn how to predict the market and make your trading strategy. Like on Forex and CFD contracts.
So, the main task here is also to determine the future direction of the price. But what is the difference between binary contracts and FOREX? First of all, a fixed profit, which is known before you make a deal.
On average, the yield here is 80%. That is, invest 100 dollars, in case of a correct forecast, you get 180 dollars (100 your + 80 net profit). Well, if the price was incorrectly predicted, you will lose all 100% of investments, that is, 100 dollars.
"All or nothing" - this is the main principle of trading in binary options!
Unlike the two previous contracts, there is an expiration date here. This is the deadline for the transaction that you set in advance. This is one of the main pitfalls for beginners.
After all, sometimes you correctly guessed the future price movement, but set too short a period. In the end - a loss.
Let's analyze the main features and benefits of binary contracts:
- This is the easiest trading tool in the financial markets. If it takes a long time in Forex to understand the operation of the MT4 terminal and understand how to conclude the first transaction, here you will learn the mechanism in just a couple of minutes.
- All risks are known in advance. Before you open a deal, you know how much you will lose if the forecast is wrong and how much you will get if it is right. This will allow you to correctly calculate your capital in the framework of money management and capital management.
- profit is fixed. You will get the same 80% profit regardless of how many points the price changes.
- This is where the opportunity to conduct short-term trading for 60 seconds. Well, the yield remains the same. Agree, why wait for several hours, if you can get the same 80% in a minute!
I hope you understand the main essence of this method of earnings. But it is important to take him seriously. After all, the main reason for draining deposits from 80-90% of newbies is treating it like gambling and easy money. People are inspired by the fact that here you can get 80% profits in 60 seconds. But do not even suspect that for this you need to follow your strategy. They do not comply with any money management, investing the entire amount on the deposit for one transaction. Just to double. But with this approach, even if it turns out to double, then with the same probability in 50 on 50 you can then lose all this money.
Well, in order not to lose, you need to follow your own unique strategy. Undergo regular training, be aware of all the important news and events in the field of finance and economics.
Auto trading
If you do not want to study complex market analysis, or you simply do not have time for this, then you can consider the option of automatic earnings. This is more of a passive source of income. You do not have to trade manually and make decisions about opening trades yourself.
This way of earning is in the work of robots and advisers. These are classic computer programs, scripts and everything that is installed in the terminal directory of MetaTrader 4 or 5.
Most of the robots are created exclusively for the MT4 terminal, since this is the most important and main terminal for making money on Forex.
You download the program, unpack it, install it into the terminal directory, configure, optimize, test the robot. In general, work abound. But the most important task is to find a decent and effective program that will really earn, and not drain your deposits.
And in this area there are many scammers who, under the guise of profitable programs, sell dummies that are not able to give a high-quality signal. Therefore, you should not spend a lot of money and be carried on advertising. A quality robot can also be found among the free ones. But in the future, you will still have to optimize and change it. Therefore, knowledge of technical analysis and basic programming skills will not be superfluous.
Abi robots and Autocrypto bot
To simplify the process of automated trading and not to torture yourself with the choice of advisors and their correct optimization, unique programs of their kind were created for automatic earning Abi robots и Autocrypto-Bot.
The first allows you to earn in the Forex market, and the second in the promising and very profitable in recent years - the cryptocurrency market.
The main advantage is that you do not need to download and install additional programs. All work is done in the web terminal. Register on the site, choose a broker from the list, open an account, set up a robot and turn on automatic trading.
Then you just have to watch how your deposit multiplies, and periodically withdraw the profit to your card.
All actions of the program are transparent, bidding statistics can be viewed in a special section on the site for each day of work.
Trust management and PAMM accounts
Well, the last way to make money in the financial markets, which I would like to talk about, is the transfer of capital to trust management another trader who has much more experience and knowledge.
You conclude an agreement with him, under which the Manager will trade for a certain period on your money, after which he will give you capital + interest on the profit he has traded. On average, net income is 10-20%. But there is also a risk and loss of funds if the trader turns out to be a low-specialized specialist or simply deceived people by posing as an experienced trader.
Conclusion
Trading is one of the most highly profitable ways to make money on the Internet. There are many ways that I have described in detail. Everyone has the right to choose the one that will be the most comfortable and convenient. It is not necessary to independently comprehend the market analysis. You can assign it to computer programs or other traders. But also independent trading opens for you a lot of new opportunities for obtaining financial independence!
