Skip to main content

How to play the Forex market - Forex strategy

How to play the Forex market? 


Those who are interested in Alternative Investments, especially Forex, may be interested in additional ways to earn money when trading on Forex.

This especially applies to traders who like Day Trading (maybe even Scalping). Such investors usually include between a few and even dozens of transactions a day. Their profit / loss depends, of course, on the results and on whether they "predict" the market movement accordingly. And this part does not change.

The way I think about it, however, allows me to earn on every transaction I make 0.5 times the size of a transaction. So for long-term investors, who rarely deal with transactions is of less importance. However, for investors with shorter horizons, with a lot of transactions, this can be a way of additional income, regardless of the results of the trading itself. This may even be treated as a form of risk management.

For example:

1) The investor trades 1 flight with 10 transactions during the day and gains an average of 10 pips per each. At the end of the day, the balance will therefore be:

A) from trade: 10 x 10 pips x 1 $ / pips = $ 100 (profit) plus

B) additional earnings: 10 x 0.5pip x 1 $ / pips = $ 5

C) Total: $ 100 + $ 5 = $ 105

 2) The investor trades 1 flight with 10 transactions during the day. For 5 of them lose 10 pips and 5 gets an average of 10 pips. At the end of the day, the balance will thus be

A) from trade: (5 x (-10 pips) x 1 $ / pips) + (5 x 10pipsx1 $ / pips) = -50 $ + 50 $ = 0

D) additional earnings: 10 x 0.5pip x 1 $ / pips = $ 5

B) Total: 0 $ + 5 $ = 5 $

3) The last option is obviously a loss on the trade. In such a situation, the additional money earned reduces the loss, or even "neutralizes" it.

I believe that the above examples show that this is an interesting method to support traders in everyday trading. You may even be tempted to claim that for very active people who, however, the result of trade has a "0" may become the main source of earning. Of course this is extreme but ... It is certainly possible and very real.

What do you need to be able to earn on Forex?


1) Firstly open an account with a company that allows such earnings.

2) Open an account to trade Forex with Brokers working with this company (or assign a trading account to that company) - I will add that they are the largest and well known Brokers on the market.

3) Open a Trader account that provides signals to others (their way may also be attributed to the account - then proportionally to the number of people the trade remuneration grows :)

4) Assign your Trader Account with signals to your trading account allowing you to trade through signals sent from your Trader account.

5) Perform transactions through your Trader account, rather than directly trading your LIVE account.

That is the principle of action. For each transaction on a real Trader account gets paid in the form of 0.5pips x transaction size. So, if the investor takes some time and effort to open and configure accounts appropriately, then each transaction will receive extra money.

Based on my experience, however, I believe that with an investment of $ 1000 to $ 1500, this may be over $ 300 / month. However, this depends only on the skill and involvement of the trader.

Comments

Popular posts from this blog