How to make money on Forex without investments – step-by-step instructions for beginners and novice traders17 min read
How much can you earn in the Forex market? Is it possible to make money without any investments? Personally, I managed to earn 500$ in 2 days. I’ll be honest – it’s not very simple.
Here I will also tell you how to do it and through which brokers it is best for beginners to work.
This material will be especially useful for beginners, and by, who is only going to trade in the foreign exchange market. Having studied the article, you will understand «your» it or not, what are the advantages and disadvantages of this way of earning.
What is the Forex market and how does it work
Forex Market (Forex) — international currency market, which is a kind of virtual space, where at the current moment the price for financial instruments is formed — currencies of different countries.
This market does not have a single trading platform (exchanges) unlike the stock market. Thanks to, that this market is international and conditionally divided into trading sessions (American trading session, European and Asian).
Forex works 24 hours a day, 7 days a week. It means, what can you earn here anytime.
The foreign exchange market itself was originally intended to, to large companies, banks and even entire countries could exchange one currency for another, i.e, eg, buy euros for dollars, sell francs and buy yen (japanese currency) and so on.
But, as the saying goes — A holy place is never empty.
And with the emergence of the market itself in 1971, he began to attract financial like a magnet (currency) speculators, which are usually called traders*.
Trader — (from ang. «dealer») usually applied to people, performing speculative operations in order to profit in the foreign exchange and stock markets.
therefore, starting to trade forex, you automatically fall into the category of traders, acquiring complex, highly paid, and a very risky profession.
Is it possible to make money on Forex and is it realistic to do it without investments?
Yes, on Forex, you can earn very quickly. With this, he attracts a large number of people every day.
Next I will tell, how much you can earn here and give visual calculations in numbers.
After all, money love account, is not it?!
Is it possible to make money on Forex without investments?
There is such an opportunity.
for instance, consulting and trust management.
Forex profit is formed in any case with trading capital.
I.e, to make money, you definitely need to invest in a particular currency, to sell it later.
But! If you have experience and understanding of the principles of trade and you are confident in your abilities, then you can give advice to people, Forex traders and take your percentage of their profits.
To do this, you will need to constantly analyze the situation in the market and in the world, but the payment for your intellectual work will be very decent.
Developing this thought, you can offer a person, who has money, be his hired trader.
I.e, he opens an account, and you trade on it, and divide earnings for example 50 to 50. If your work will be profitable, then the investors themselves will bear you money.
Thus, can say, what to earn on Forex without investments is impossible, the only question is, whose investments will it be.
What you need to make money on Forex — 4 basic conditions for a safe start
Let’s look now, what you need to know, be able to have, to profit from currency trading.
These prerequisites will be needed ironically, if you decide to become a trader in the foreign exchange market.
Condition №1. Initial capital
Yes, freebie lovers have to smoke aside, so how to make money fast, at the same time a lot and without investments can only criminal or morally unacceptable ways.
Here you need to think not with money, and interest, since work on forex — it’s a cross between speculation and investment.
for instance, good income is considered, if you are here STABLE make a profit of 3%-10% per month, which averages from 30% before 100% per annum.
Such a percentage on invested funds the trader receives, if he does not put back the profit, and takes it off and spends on his needs.
If the trader does not withdraw his profits, and systematically increases the trading account, then given the compound percentage, (when the percentage is superimposed on the percentage), his annual profit may be from 100% before 500% per annum.
In theory, it is, but practice shows, that only a few people out of a hundred are generally able to make a profit here, comparable to at least a percentage of a bank deposit (8%-15% per annum).
Thus, if you want to earn 100$ in a day (3000$ per month), then you need capital at least 10 times more.
Condition №2. Special knowledge and experience
Anyway, and without knowledge and experience on Forex there is nothing to do, that’s for sure!
You can get them, starting to study articles, Related literature and videos, as well as opening a virtual trading account and practicing on it.
In the meantime, it remains to become a student.
The best learning option — is to find yourself a good mentor, who already has rich experience in Forex trading, earns money consistently and can teach you.
Such a person can teach you how to free (for a nominal fee), just because, that just enjoys the transfer of knowledge, or maybe ask for a substantial fee for the transfer of experience to you.
If your mentor asks you for tuition, demand guarantees of result from him, although in most cases your financial success will depend on you, more precisely on the quality of your trading decisions.
Then you will understand, what is Forex earnings for you — fantasy or reality.
Where to look for a mentor (experienced trader):
- among friends and acquaintances;
- on thematic forums about Forex on the Internet;
- in brokerage companies and dealing centers in your city;
- at seminars and events for traders.
What to look for when choosing a mentor:
- Is Forex the main source of income or is it just a hobby for a person. A professional trader with his big earnings will not be scattered and do anything else.
- Reports on trading results for at least one year on different accounts. The market often changes and profits of 5, 10 or 30 percent for the current month may result in the same or even greater losses in the next. therefore, period is important, for which the future mentor provides you with a report. It is also important to find out, Is this the only account for this trader. Perhaps it was on this account that he managed to increase capital by 70% per year, and in another trading account he suffered a big loss, which the «ate» all profit. Take a look, how your mentor will analyze the chart of currency pairs and what he will do after such an analysis.
- You see with your own eyes how a person makes money. Sit next to him and see how he trades on a live account. If a trader stably earns here, he has nothing to hide. He will open his trading platform right in front of you and in real time will show you how to trade Forex correctly and explain his actions.
Here is what else you need to work productively on the exchange.
Condition №3. Steel nerves and time
I will explain why.
When you open a position, that is, buy any currency, you see immediately, how current price fluctuations change the size of your account.
Just imagine, you sit and see the following picture on the screen: two minutes after the opening of the transaction you have lit «+ 153$», and after five to ten minutes you see «- 184$».
The question immediately arises, why not close the deal, when she went plus?
And then his main enemies come to the trader — this fear and greed.
Greed tells him — wait another, maybe in 5 minutes it will be 2 times more.
It happens and vice versa.
The trader opened a deal and it went negative, and fear tells him — close position, until the whole bill «leaked».
Anyway, to understand the principles of work on Forex and even more so to start earning here at least for bread, I’m not talking about oil, a solid time must pass.
It is usually measured in months and even years.
Condition №4. Cash reserve
Dear friend, you must know, that all speculative operations, this is especially true for the Forex market, fraught with great financial risks.
Can say, what is your own home based business.
therefore, remember the golden rule of risk management in business:
Never open a business for the last money, especially, if you do not have enough experience for this!
Indeed, in most cases, novice traders completely lose their trading account in the first week of Forex trading.
You must have a specially deferred reserve amount, which you plan to live on, while you go the way of becoming yourself a trader.
Or you must have other sources of income, if you do not want to be disappointed once and for all in earning on currency speculation.
At the end of this section of the article, I want to visually highlight the advantages and disadvantages of working on Forex.
Benefits of Forex Trading (+)
1. The ability to earn a lot and quickly
Due to, that the broker provides you leverage, you can literally turn 100 here in a day$ in 1000$! Another thing, how reasonable are your risks in doing so.
2. Unlimited earnings
When people ask, how much can you earn on forex, I immediately recall the example of the famous financier George Soros, who earned over a billion dollars here in one night!
If you still have this question and you are not enough billion, then it remains only to become the ruler of the world and appropriate all resources, which are on the planet.
This is a natural joke 🙂
3. Simplicity of work
Technically Forex trading is no harder, how to use a mobile phone or play a computer game. Another thing, that the financial results in this case will no longer be toy.
Disadvantages of Forex Trading (-)
1. High risk of losing money
Leverage, that the broker provides you is usually 1 to 100. That is your part of the trading capital broker «sponsors» ninety nine more.
It means, that you do not open the track 100$, and immediately to 10,000$ and the slightest fluctuation in exchange rates entails a rapid change in the trade balance as a plus, and minus.
If you don’t have experience yet and add excitement during trading, then the chances of getting losses increase many times.
2. Nervous work
If you haven’t tried playing Forex yet, I guarantee you, that for the first time trading for real money you will sweat your palms, heart beat quickly and even gray hair may appear.
therefore, I recommend to refrain from this method of earning for people with increased emotionality, nervous or cardiovascular disease.
Here you need to be calm and emotionally stable.
In some cases in humans, working in this market, gambling develops*, they can no longer stop and «flirting» on the exchange, like in a casino. Lose everything, sell the latest things from home, borrow money and lower it. So be careful.
gambling addiction — psychological illness, which is characterized by a dependence on the game process. Especially often gambling develops in people, who gamble for money, at casino visitors and often at exchange traders.
3. Income volatility
Even the world’s coolest traders will tell you, that once at a time it’s not necessary and in some month or year you manage to earn a lot, and in another period, the speculator suffers losses or stays with his money.
Therefore, professional financiers usually measure the results of trade once a quarter or a year.
The saying is best here:
«Do not count your chickens before they are hatched».
Beginner Trader Should Know, that good profit from previous periods does not guarantee the same results in the future.
How to make money on Forex — step-by-step instructions for beginners
And now, when did you find out, what is forex, understood the principles and nuances of this type of earnings, I suggest that you read the step by step instructions, which will help you as a beginner correctly start in this business and maximize the chances of becoming a successful trader.
Step 1. Choosing a Forex Broker
Here I will tell, how to choose reliable broker*.
From that, Which broker you choose depends on a significant part of your success in trading.
Broker — this is a company, through which you will carry out Forex trading operations.
Legally, you cannot independently enter the foreign exchange market directly.
It is best to choose a Forex broker according to the following criteria:
1. Company life and seriousness
I do not recommend you work with brokerage companies, who have been operating for less than three years.
find out, whether the company is officially registered and whether it has the relevant documents for conducting brokerage activities.
2. Broker rating
On the site you can see the rating of Forex brokers and find the most suitable company for yourself. It is advisable to work only with those, who is in the top ten.
3. Minimum trading capital of a trader
Different brokers have a minimum deposit — your trading account is different and may vary from a few cents (so-called cent accounts) up to several hundred dollars.
for instance, with banks, the minimum size of a trading account can be in the thousands of US dollars.
4. Value of the trading commission (spread*)
Another important indicator when choosing a broker.
Spread — this is the difference between the purchase and sale price of a currency. But easier to say, what is a broker’s commission, so it will be clearer, if you are new to currency trading.
Lower spread, the more profitable you are to trade.
I will explain.
When you open a deal, a small amount is deducted from your account (spread). It means, that you automatically leave in a small minus.
Thus, if a, eg, you opened a deal, the price went up and you recorded a profit of 100$, then your profit is 99,5$ taking into account the broker’s commission.
5. Bonuses and level of service
note, How does the staff of the brokerage company and support services communicate with you?, and also in what way is the withdrawal of earned funds.
Step 2. Decide on a financial instrument
To start trading, install a trading platform. Different brokers may vary in function and interface.
The classic Forex trading program for most brokers is still Metatrader version 4 or 5.
Understand the functions of the selected program, analyze and check all its possibilities in work.
Search the Internet for instructions on using this trading platform or ask for such guidance from employees of a brokerage company.
After that, how do you learn to use the program, you will have to choose a currency, with which you will trade.
Forex trading in currency pairs, eg, euro dollar (EUR/USD), swiss franc dollar (USD/CHF) and so on.
To get started, select one popular currency pair, best euro-dollar (EUR/USD) and look at her chart and the current price change.
In the future, with the advent of experience, you can trade two or three currency pairs or more.
Step 3. We go through the training phase on the DEMO account
Now go directly to the trade. Open a demo account for trading (demo account) in the amount of, which you plan to trade in reality, e.g. 1000$.
Spend some time trading on a demo account, eg, a week or two, to understand, how to technically trade Forex using a trading terminal (computer program).
Try to treat your demo account like this, as if this is your real money, avoid big losses, but do not chase after superprofits.
Trade calmly, open and close deals only then, when you are sure, what is the most correct decision at the moment.
Do not open an account in real money, until you steadily manage to earn money on a virtual account.
Usually, in a few days, miraculously, people get a good profit on a demo account, and some even double their trade deposit.
But not everything is so smooth, when it comes to real money. Cause your emotions are here — main barrier to higher earnings.
Now the final step is left, go to him.
Step 4. We open a real account
To get started, you can open a cent account, if your broker provides such a service. Here you will indulge «copecks», but it will already be real money. And if you suddenly lose your trading capital, it will not be so offensive, because 10-20$ pay for getting a good experience is not a pity.
Further, having a more serious amount of money, you can open a dollar account.
It’s also worth moving from simple to complex. And even if your broker does not give the opportunity to open a cent account, then do not rush to immediately open a solid deposit of tens of thousands of dollars.
Practice your little money. Practice shows, what before, how a beginner begins to earn the first serious money, he «drains» more than one trade deposit.
therefore, It is advisable to open a large dollar account after receiving a positive result on a cent.
Agree, lose 2-3 times for 100 or 200 dollars is not so insulting, like 2000—3000 dollars.
At this stage, You have decided on the size of the trading capital and opened your real account with a Forex broker.
Step 5. Going to breakeven trading
First stage, which you need to go through and gain a foothold on it — it does not lose money when trading.
Now do not try to earn a lot. Your task — make deals, control risks and not «merge».
When you feel confident and your trading capital at least will not decrease from deal to deal, can move on to the next step — maximize profits from your trading.
Step 6. We get the first profit
Here you will see, do you have a real talent for forex trading.
First profit — An exciting and memorable moment for a novice trader.
but, practice shows, that she is also rapidly leaving, as it came.
For this stage of trading, the expression:
Result stability — sign of mastery!
Professional trader — not that, who doubled their trading capital in 3 days, and that, who from month to month, from year to year it trades profitably and shows a systematic increase in the profitability of its trade with proper risk management.
Constantly analyze your results and try to understand the cause-effect relationships of currency price movements.
Step 7. We increase the trading account
If for a long period of time you manage to trade profitably, but your trading capital is too small to generate a solid income, just increase it.
For this, think in percent.
for instance, if you have learned to do steadily 5 or 10 percent per month from $ 1,000, then try to do the same with $ 3,000, so, if profitability persists, gradually increase your trading account by 2-3 times.
At a certain point you will feel, that you can manage larger amounts and then start trading on an account with dozens, and then hundreds of thousands of dollars.
It all depends on your talents, perseverance and systematic trading.
Approach Forex Operations as a Responsible Job or a Serious Business.
Never take it as a game or hobby, because in this case you are guaranteed to lose money!
Secrets of Profitable Forex Trading — my personal experience
I was engaged in Forex trading for several months and did not set out to become a super trader and earn millions here.
Rather, I was driven by curiosity and a desire to test, how much money can really be earned here.
First i like everyone — studied theory, forex strategies, traded on a demo account.
Generally, went through all the steps, which are described above.
Then he opened a real account for 1000$, began to trade.
It was very scary to open the first deal, although it turned out to be profitable. Then I earned 75$ for the evening.
Then I lost as much. Honestly, that he traded on Forex mainly without following a certain system, opened positions situationally, succumbed to emotions.
So in a few days I still managed to earn 500$ or 50% on the size of my trading account.
But it was pretty risky, since the size of such a profit could at least lead to a loss of 25% my trading capital, and this is unacceptable.
After which I analyzed my trading and came to the conclusion, how to trade forex profitably or at least not lose money.
Rules for Successful Forex Trading
1. Control your emotions
Do not open positions thoughtlessly and guided only by emotions.
With this approach, Forex game turns into roulette and sooner or later you lose your money.
Remember, that fear and greed — the main enemies of the trader and in the foreign exchange market, you are primarily fighting yourself, not with other exchange traders.
2. Trade systemically for your chosen strategy
Now there is a lot of information in books and on the Internet on various Forex strategies. All of them are made taking into account the psychological characteristics of different traders, terms of trade (long term trading, medium term, short term) and financial instrument (currency pair).
3. Manage risk
Do not invest too much money in one transaction, trim losses on time, place orders for forced closing of the transaction in case of sufficient profit (take profit) or unforeseen losses (stop loss).
If something goes wrong — close the trail immediately and do not leave an open position with the hope that, that now the price will turn around and go in your direction.
4. Learn and practice constantly
In any case, development is important. therefore, attend exchange trading courses and trainings, buy and study Forex books and courses.
Now in YouTube you can find many videos on profitable trading in the foreign exchange market.
As I wrote above, find yourself a good mentor and pour in a party of those, who has already gone a difficult way from a beginner to a professional and then your chances of success will grow many times over.
Beginners will definitely benefit from the above four rules.
The result of my story was a gradual loss of earned profit and a return to the previous level of 1000$, that is, I have not earned anything or lost.
But at that moment I understood, that emotionally it’s very difficult for me to trade and, probably, it’s not really mine.
Therefore, I applied for a withdrawal of funds and just took my money back, tied to forex trading.
Although,now i know for sure, what you can earn on Forex — it is a fact!
It remains only to understand, is this your occupation or not.
After all, Forex itself — this is one of the many areas of earnings as a whole in life, and on the internet in particular.
And if you are interested in this topic, it’s worth a try. At least, you will know for sure, what is it and how can you make money here.
Forex Market gives you the opportunity to earn fast and a lot, income is unlimited here, but fraught with high risks of losing money.
These risks can be reduced and this must be done, if you decide to seriously engage in a Forex game.
Every day, thousands of people wonder, what is Forex earnings — fantasy or reality. And starting to trade, everyone answers this question for himself.
Here you will need to understand, why each currency behaves differently.
for instance, the chart of one currency will be smooth, and the other — sharp with a large amplitude of deviation from the current price (volatility).
Use the rules and guidelines, described in the article, and you will at least stay with your money and get an interesting experience in stock trading.
Forex trading — it’s in a way romance, state of mind and lifestyle!
True trader — this is an entrepreneur, who takes big risks in anticipation of superprofits, because playing the stock market itself is fun, gives freedom and mobility, just do not flirt and approach responsibly to this matter.
Now you know, how to start trading, and if you are a beginner and decide to try your luck, don’t be afraid and try, suddenly it will become a matter of your life.