Did you know the foreign exchange market (the Forex market) is the largest and most liquid market in the world? Trading averages about $5.3 trillion a day. That works out to around $220 billion per hour!
It’s true individual investors make up only a small part of this market’s trades. But, the Forex market is growing quickly in popularity.
You don’t have to be a full-time trader to make money. In fact, it’s possible to trade on a part-time basis. And, you don’t need a library’s worth of knowledge about foreign currency exchange or economics.
Are you interested in learning how to make money with Forex? In this article, we’ll show you how to do it the lazy way. Read on for more information!
1. Limit Yourself to Currency Pairs That Trade When You’re Available
Forex trading occurs twenty-four hours a day, but that doesn’t mean you have to trade all day long to make money.
There are peak times when the Forex market is the most active and volatile, and, therefore, the most profitable. If you can trade during those times, great! But, if not, that’s okay too.
Look at your schedule, and determine when you’re available to trade. For many people, this is either in the early morning or after work.
See, then, which currency pairs are trading at high volume during those times. It could be the popular EUR/USD pair (best for beginners!) or another one.
You’re looking for a lot of activity, which helps to guarantee liquidity. That term refers to a trader’s ability to sell a position, and it means potentially higher profits for you.
2. Start With These Currency Pairs
Alternatively, you could focus your trading around well-known, popular currency pairs. They are easier for smaller traders and beginners to work with. Besides, all of them involve trading U.S. currency against other foreign currencies:
These are briskly-traded pairs with strong liquidity. In fact, most of the dollar volume on Forex markets occurs in these pairs. This is why they are best for beginners and may be the right trades for you.
3.Use an Automated System
Part-time traders can trade on their own. Some, however, prefer to use an automated trading platform. That saves them from having to monitor currencies around the clock and rushing to place their trades.
An automated platform can be combined with live Forex signals. It will place trades for you based on the Forex signal in your portfolio.
That is a wonderful way for new traders to learn about the Forex market. It also allows them to trade confidently and successfully until they learn more.
4. Start With Enough Money to Make a Profit
Many Forex brokers allow traders to begin with an investment as low as $100. If you’re planning on making an income from Forex trading (even a part-time one), it’s best to start with at least $500 (although $2,000 to $5,000 is better!).
The less money you begin with, the less flexibility you’ll have in trading. This situation could force you into becoming an active trader, whether you want to be one or not. Trying to hold out for long-term gains, then, could result in a losing trade.
On the other hand, with more money invested up-front and no more than 1% of your account on a trade, you’ll be able to create a steady stream of income.
It’s possible to become a Professional Trader. With a little planning and enough money to begin trading, you can carve out a nice part-time job for yourself.
What’s more, this side hustle won’t require extensive training in foreign currencies and economies. You might even say it’s a lazy way to make some extra cash!
Are you interested in learning more about Forex trading and live Forex signals? Check out our blog for the latest information!