How to earn on the Forex market for beginners.

The Forex exchange has long been known for its opportunities, especially for experienced investors. However, newcomers will also be able to master it if they understand how to earn on Forex. To put it simply, how to earn on forex, one must first understand how money is made on it: essentially, it is earning on the difference in exchange rates of different currencies. 

But even with a unified system, the strategy of how to earn on Forex can vary. This is an important nuance. Moreover, the strategy of how to earn on Forex can also depend on the invested funds. Therefore, there is no single answer on how to earn on Forex for beginners. From scratch, that is, for novice investors, it will be necessary to master several ways of earning on the exchange (the market) at once. 

How to earn on the Forex exchange? 

Let’s start with the fact that an exchange like Forex operates in the international market. It is one of the largest and, accordingly, one of the most popular. Many choose Forex because it has developed an almost perfect reputation over the past few years. Every day, millions of transactions are conducted on this exchange, which operates around the clock. However, for newcomers, trading on Forex can seem complicated and confusing. 

If a novice needs to start somewhere, it’s worth beginning with the study of the basics. That is, what an exchange is and how it works. It is a decentralized market where currencies from various countries are traded. The main principle of working on Forex is buying one currency while simultaneously selling another. Transactions are made in currency pairs, for example, EUR/USD (euro against the US dollar). That is, there are pairs (these are 2 currencies) that can even be connected. The exchange rate difference between them can yield a profit. However, in reality, dozens of other factors influence all trading on the exchange. An experienced investor takes all of them into account. 

Talking about the features of Forex, the following can be highlighted: 

1. Non-stop operation. Forex operates 24 hours a day, 5 days a week. This allows traders from different Time zones to participate in trades at their convenience.

2. Sufficiently high liquidity. Thanks to huge trading volumes, currencies can be quickly bought or sold without significantly affecting their value.

3. Investors can earn on both rising and falling rates. This is one of the most distinctive features of this exchange. Unlike the stock market, on Forex, one can earn from both the rise and fall of currency values.

Thus, the principle of Forex operation is quite simple, but to start earning on it, one needs to enter the market step by step. 

How to start trading through the exchange? 

Good news for beginners is that trading on the exchange is not that difficult. It’s harder to start earning well on it. The first trades can generally be conducted with minimal investments. 

To begin with, it’s better to learn more about the basics of trading. Before starting trading on a real account, it is advisable to study the fundamental concepts and principles of working on Forex. This will help you better understand how transactions are made, what currency pairs are, as well as spreads, lots, and margins. In this case, educational courses, webinars, and various information available online will help. As an option, books on the basics of Forex, of which there are also many. Studying information isn’t very interesting, but for significant earnings, it’s necessary for beginners. It wouldn’t hurt to read various forums as well. 

Next, you need to choose a broker. You cannot trade on the exchange without one. The broker provides a platform for conducting transactions in the currency market. When choosing a broker, it’s important to pay attention to the following factors:

1. Make sure that the broker is regulated in your country and has a license. In Ukraine, the regulatory authorities are the National Securities and Stock Market Commission.

2. It’s best to find out about all the commissions that the broker charges right away. Also, it’s better to clarify the conditions for buying, selling, and withdrawing funds. 

3. Additionally, check how convenient the platform is to use, whether there is a mobile version, and whether there are educational materials for beginners.

Only after this and with the help of the broker can you open your first demo account. That is, before risking real money, it is recommended to open a demo account. A demo account is a training version of a real account where you can trade virtual money without the risk of losing funds. This will help familiarize yourself with the broker's platform and test your trading strategies.

At this stage, you can start understanding Forex practically. It’s better to start with small amounts, which can be gradually increased as you gain more experience. 

Earning strategies on Forex 

Various strategies developed by experienced investors will be helpful for beginners. Speaking about large amounts, strategies will need to be combined and new ones invented; however, for beginners, even one such plan will already serve as a real assistant. 

There are many trading strategies on Forex that allow earning on both short-term and long-term fluctuations in currency rates. For beginners, it is important to choose simple and clear strategies that will help them navigate the market.

First of all, trading by trend should be considered. This is one of the most popular and simple strategies for beginners. The essence is to open transactions in the direction of the main trend — that is, to buy currency when it is rising and to sell when it is falling. Trends can be upward (currency growth), downward (decline), or sideways (stability).

Determining trends is not that difficult. You need to constantly analyze prices, their movement, and review charts. Indicators like moving averages can also be used to identify trends and points of entry into the market.

You can also trade on Forex based on news. This refers to global economic news, which greatly impacts currency rates. For instance, changes in interest rates, political instability, or the release of important macroeconomic data can cause sharp fluctuations in currencies. Beginners can use an economic events calendar to track news and make trading decisions.

When it comes to strategies, one can pay attention to scalping. This is a strategy based on quickly making many small transactions. Scalpers aim to profit from small fluctuations in currency rates. For this strategy, it is essential to have a quick reaction and the ability to analyze the market on short-term intervals.