That is one of the leading questions anyone considering forex trading asks. The simple answer is yes you can, but the reality is that it depends.
The best way to enumerate this is to start with an example. George Soros, worth an estimated 8 billion US dollars, made his money through investing. He is known as the man who broke the bank of England because, in 1992, he took a short position against the pound and made a profit of 1 billion dollars when the UK withdrew from the ERM.
There are other examples to consider, such as Andrew Krieger and Stanley Druckenmiller. Clearly, there is money in forex exchange. However, there is a reason why when you Google people who became millionaires via forex trading only these few names come up.
The reason is that it takes more than luck or a casual knowledge of the forex exchange market to make it big. Instead, it takes time, commitment, and willingness to fail and learn from failure. George Soros, for instance, studied at the London School of Economics and followed that up by working in various banks. It then took him more than ten years after starting his first hedge fund to make that 1-billion-dollar profit. He took his time, learned what he needed to learn and eventually it paid off.
Therefore, wherever you are trading from, forex exchange the United States, India or forex trading Australia, the principals that govern success in the forex trading are similar. Here are three of them.
Start Small
The continuous piece of advice every experienced trader gives is that everyone ought to recognize that forex trading is not a shortcut to immediate wealth. While there are people who are lucky enough to make it big with their first trade, for 99% of traders, it takes time.
It does not matter how skilled you may be, always start small. The best place to start is with a demo account. Find a good broker, and there are many available such as Rakuten broker and open a demo account.
Practice until you feel you have learned enough then move on to live trading. Once you start live trading, do not immediately begin trading 300,000 dollars on a 10,000 dollars’ account. Chances are, you will probably lose 20% of your account in a matter of weeks.
Always start small and increase your leverage with time. That is the foundation of making it big in forex trading.
Commit Yourself to Learning More
Everyone is a total of what they know, and it is what you know about forex trading that will determine how successful you are. The thing about forex trading is that it is not constant, it changes every single day. The factors that affect the falling and rising of a particular currency are continually shifting.
As a result, it is necessary that you commit yourself to learning more, and to keeping up with the changing industry if you are to remain competitive. At the moment, traders who initially embraced cryptocurrencies and machine learning are raking in money merely because they noticed an oncoming change and were quick to adapt and learn.
The trick to forex trading success is always to be open to learning more. Never stop learning.
Do Your Research and Take Advantage of the Tools Available
In the current age, there are countless tools to help a trader. The trick is in identifying which device is right for you. It could be SSI, a tool that tells you the traders who are short vs. those who are long on a specific currency pair.
The tool could also be copy trading or social trading; a tool that allows you to learn from and copy more experienced traders.
In essence, the tools available are too many to list. Therefore, do adequate research, combine that with what you have learned and pick a tool you are convinced will make you a better trader.
Final Word
Remember also; your broker plays a vital role in your success as a trader. Rakuten Securities, for instance, or any other trusted broker who will partner with you to ensure the best possible environment for a successful trading career.
