Forex Trading: Opportunities to Make Extra Money During the Pandemic

How to make money on forex trading

This year has revolutionized the way we think about work, communication, and human connection. The global pandemic has shattered economic systems to the core.

Millions of consumers were confined to their homes around the world, with no opportunity to live their usual lives. The crisis has brought countless problems, but it has also highlighted new opportunities presented by the Internet.

Today, anyone can learn to trade currencies, stocks, and other instruments online. Virtual trading by itself is not a novelty. Over the past few years, India has embraced Forex.

Overview of Opportunities

The global currency exchange is the largest financial market with a jaw-dropping turnover. Every day, it sees volumes over US$6 trillion. They are exchanged between organizations and individuals. The retail dimension has existed since the 1990s, but now it is more accessible than

So, how exactly are currencies traded through the Internet? All of them are valued in pairs, against one another. These combinations are classified as major, minor, or exotic based on the economies they represent.

Majors and minors are connected to the strongest systems, like the economy of the USA or Switzerland. The third category is linked to the least developed economies. Common examples are the Turkish lira, the Thai baht, and the South African rand.

Trading can bring profit because currency rates are always changing. This market never stands still. It is affected by a plethora of factors ranging from fiscal policies to geopolitical tensions.

A trader aims to buy low and sell high. In this regard, the market is very similar to the stock exchange. A well-timed trade can bring you a hefty profit. The key is to foresee movements using media information and special technical indicators.

Overview of Tools

So, what should your arsenal include? Traders may apply fundamental or technical analysis to foresee likely changes. The first approach is based on news reports in the financial media. For instance, announcements made by central banks can cause the respective currencies to plunge or jump.

Higher interest rates precede growth, while bigger trade deficits cause depreciation. In addition to this, you have factors like GDP, unemployment, foreign policy, etc. These elements are tracked using economic calendars embedded in trading software.

The second avenue of thought is technical analysis. Here, traders look for confluence between several indicators, such as volume and moving averages. The premise is that patterns tend to be repeated over time.

Trading terminals have many indicators, and there are even Forex robots can be programmed to trade automatically. Some traders may use both types of analysis to make decisions on Forex.

Popular systems, such as MetaTrader 4 recommended by ForexTime, have different versions. You can choose between desktop software, mobile apps, and even web-based terminals. Switch devices during the day if necessary, and enjoy unhindered access to the system.

Plenty of Educational Forex Trading Opportunities

The Internet has a wealth of educational material for a newbie trader Forex. First, everyone should get initial support from their broker. The company may provide articles on popular strategies, links to webinars, etc. This education is free for their clients. You can also find a good deal of resources on your own.

Even a basic Google query will give you thousands of results. There are articles, books, video tutorials, podcasts, and more. YouTube has dozens of reliable channels devoted to the subject. Some of them are hosted by real Forex legends. For example, check out Warrior Trading.

Any theory you learn should be followed by practice. Trading platforms include a special mode just for education. It is unlocked with a demo account, which is easily created online via your brokerage site.

Use the simulator to practice managing trades and choose the most appropriate strategy. You can see how all the controls work, so you know exactly what to do when real money comes into play. Live trading will give you access to the largest financial market, which requires preparation and caution.

Can I Make a Million?

The size of returns depends on more than one factor. First of all, you need the right knowledge and mindset to trade successfully. The market may always turn against you, as its forces are beyond your control.

Your initial investment is also important, as it determines the range of possible profits. During the pandemic, when conventional employment fails, this is not an opportunity to miss.

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