TO make money. Well, this depends on how much youre risking per trade. Mathematically it can be expressed as: E 1 (W/L) x. You can download it here for free). In this example, the expectancy of your trading strategy is 35 (a positive expectancy). Now the question is whether this process results in profit in reality and actually or not. The last question is: how do traders know what currency pairs to trade and when to buy or sell them? The price difference makes some profit for them. You can start with a small account, but it takes you a lot of time to turn it into a reasonably big and professional account.
Money, can You, make from, forex, trading?
For example: you see that Canadian unemployment rate declined, which means that the CAD will rise. As the rate is now.0690, you will receive 106,900 when you sell the 100,000 you had bought: 100,000.0690 106,900 Therefore, you have made a 1,000 profit: 106,900 105,900 1,000 It can be the other way round if EURs value goes down instead of going. Position size, level of risk. They have been lucky to make some profit for a short while. Sometimes the markets become too volatile and cause some big losses. They are the ones who lose a lot of money and give up on Forex trading sooner than later.
But no matter what strategy or system youre using the bottom line is you need money to make money in this business, period. You have to have money to master your trading strategy. Fundamental analysis, it is all about following economic news in different countries. Because youve got different account size, risk appetite, risk management, trading strategy, and etc. Forex is the knowledge and art of trading different currencies against each other and making profit through. It is an approximate distance that the pair will go down from the neckline.