7 Correct Forex Trading Ways to Earn Money

Forex trading is difficult and easy. Forex aka foreign exchange or foreign currency exchange is still considered a "terrible" investment. Horrified because the results can make drooling so big. Also horrified because the potential loss is so great that personal assets are at stake.

Forex is like two sides of the same sharp sword. If you use it incorrectly, you might hurt your hand. However, there is one thing that is interesting. According to an article in Republika, housewives are also interested in investing by trying out forex trading. This means that this investment in buying and selling foreign exchange is actually not exclusive to men with ties.

For those of you who are also interested in trying your luck in getting money from forex, there are a number of tips that can be applied the following:

1. Learn what forex is

Do not know, then do not love. The first step before trying to trade foreign exchange is to learn what forex is. One way is to ask for information from the Financial Services Authority (OJK). OJK has public services in the form of complaints or requests for information about financial products. The request can be submitted in accordance with the procedures listed on the OJK website.

Googling itself is also recommended, as long as the main role models are trusted sites. Not a blog created just to get traffic. What is also recommended is to find a mentor or someone who has already entered the world of forex. In essence, get as much knowledge about forex trading as possible first before becoming a trader so you don't get the wrong target.

2. Try another investment first

For starters, you can try other investments that are similar to forex. For example, stock mutual funds or dollar savings, which work more or less similarly to forex. That way, you know how the investment is carried out and the risks.

From this experiment, it is hoped that you can know a little bit about investing. In investing, there is the possibility of profit and loss. Don't just hope to make a profit, especially if you are still groping as a novice investor.

3. Prepare funds

Each broker has its own provisions regarding forex trading capital that traders must prepare. As a beginner, you should prepare a minimum of capital first. Calculate for capital to learn forex trading.

When you are more proficient, just inject new capital. Small capital when you are a novice investor is also useful for minimizing losses. Unless you are sure you can succeed and will reap the benefits of that investment.

Funds for this investment must be separated, not picked up from other posts. Later, if forex trading goes well, resist the temptation to put most of your funds into this investment. It must be underlined that investment funds must come from investment posts.

4. Find a broker

With the capital that has been prepared, look for a broker that matches the nominal amount of the funds. At this point, it should be emphasized that for forex traders in Indonesia, it is advisable to look for a broker from Indonesia as well.

Because, it is easier to track the legality of the broker. In addition, if anything happens, for example the broker goes bankrupt or other bad things, things are easier. Look for a broker registered with the Commodity Futures Trading Regulatory Agency (CoFTRA), because it can be ascertained that it is official and more reliable.

In addition, prioritize brokers who take commissions or smaller spreads and don't use these fees. Thank goodness you can get a broker with a free consultation fee. Brokers are companies, of course they want to make a profit. A good broker is one who wants to profit with the trader, not seek profit alone.

There may be many offers from brokers, such as bonuses when registering as a trader and others. But that's not a guarantee the broker is worth choosing.

5. Make sure the "weapon" is powerful

Weapons in forex trading are gadgets and a capable Internet connection. The gadget can be a computer, laptop, or smartphone.

Forex trading can be done 24 hours for 5 days (Monday-Friday). This trade obviously requires an Internet connection as everything is done online. Therefore, a good connection must also be prepared so that transactions do not crash in the middle of the road.

Maybe the opportunity to earn money that is in front of your eyes is lost because of technical problems like that. In fact, it could be a loss and up to billions in debt.

6. Demo accounts

Each broker generally provides a demo account service, aka an account that can be used for forex demo trading. This demo is important to run to find out the stages of forex trading in the application provided by the broker.

Make the most of this demo so you don't get nervous when you really have to decide to sell or buy forex in front of the screen. It's money at stake.

7. Be a disciplined trader

The final stage of how to trade forex in order to earn money is to become a disciplined trader. Discipline is required to determine when to sell and when to buy foreign exchange.

The formula for buying and selling forex is actually simple, namely selling when the value goes up and buying when the value goes down. But forex trading is dynamic. If you are not disciplined, you will be easily tempted to see forex whose value is dropping without thinking about its future potential.

Remember, forex that goes down doesn't mean it will go up later. It could even continue to fall, resulting in losses for traders. Every investor certainly hopes to get a profit. But investing is not as easy as turning the palm of the hand, let alone forex investment.

If you intend to enter the world of forex trading, first prepare everything. Including the mentality to deal with losses that may occur in foreign exchange trading.