An often asked question about Forex is whether it is possible to make money in this currency exchange market. The answers range anywhere from “it’s a scam and you should stay away from it” to “it is the greatest way to earn money by doing almost nothing”.
If you are wondering about whether it is possible to earn additional or full time income trading currencies, this article is for you. Let’s find out.
There is a lot of Forex information for beginners, and unfortunately, a lot of it is full of either hype, or are screaming to stay away from Forex. The truth, however, is really simple, and can be found somewhere in the middle.
Let’s deal with the hype first. If you have researched Forex robots – automated software that does your trading for you – you know very well what I’m talking about. They promise insane gains out of couple of hundred bucks, a fancy lifestyle, a yacht and millions and whatnot – all that if you buy their product for about hundred bucks.
The truth is, that while those robots sometimes work, more often they do not. The problem is that they are suited to a certain market condition, and once that condition is not true anymore, they can quickly lose your account. My advice – stay away from them, and you’re half way there.
Now there’s doom and gloom side of the story – that Forex is a scam and everyone who goes near it, loses their money. That isn’t true either – it happens because people aren’t careful with choosing their broker (there are some shady brokers around that won’t pay out your earnings, and in that case it doesn’t matter whether you are a good trader or not), or they simply risk too much, or they just think of Forex as their ATM.
As you can see, every problem with Forex is created by people themselves. The Forex itself is not a get rich scheme, and neither it is a scam. It is just a tool, which some people use to earn a decent living – and some people lose money in it.
The answer to the question whether it is possible to make money with Forex is a definite yes. In order to do that, though, you need to be careful, and study simple price action in order to understand what’s going on in the market, learn about money management to risk proper amount of capital on any single trade, and understand your own psychology – what trading strategy suits you the best and, if you are a beginner, take a look at our Forex trading tutorial as we believe it is a must-read topic to get you started!