Forex Trading Advice – How to Make Money in Forex Trading
The forex market is a global marketplace where you can buy and sell currencies. It operates twenty-four hours a day, seven days a week. The market closes only for the weekend, but rates are likely to move throughout the week. In addition to offering a great deal of potential for profit, the forex market is also very cheap to enter and has low transaction costs. Forex brokers make their money by charging a spread, which is usually measured in pips. The smaller the spread, the cheaper your trades will be.
In order to make money in forex trading, you need to understand how the market works. While there are many legitimate ways to earn money in the forex market, you also need to be aware of some common scams. According to Angelo Ciaramello, CEO of retail trading education firm The Funded Trader, there are three main types of forex scams. One is a portfolio manager scam, which involves an unregistered portfolio manager contacting you through social media and promising you unheard of returns. The scammer will use an alias or fake name to attract clients.
Another common strategy is to take a short position in the market. In a short position, a trader sells a currency in anticipation of its value declining, with the intention of buying it back at a lower price. The trader will then close the short position when the asset is at a lower price than when it was sold.