Forex Trading: Can You Make Money Online?

Making money online is the desire of many. It means, in fact, breaking free from the logic of classical work, which imposes working hours, presence in the office, in the laboratory, in the store, etc., an income that is always the same. Of course, making money online is not easy, just like doing it "offline". In fact, if possible, it is even more difficult. What options are available? There is more than one, and among these, Forex Trading stands out. Intrigued by the many advertisements on the web, enticed by the possibility of generating wealth, many laypeople consider a career in Forex Trading. Is this a hypothesis that can find confirmation? Is it an alternative to consider? In short... Is it possible to make money online with Forex? In the following article, we will answer this question, addressing both theses (yes, it is possible) and the other (no, it is not possible or at least too difficult).

Why it is almost impossible to make money online with Forex

Of course, if it were easy to make money online with Forex, it would have already become a mass activity, while still, despite a certain openness to the general public, it can be considered a niche. According to the most skeptical, however, it is practically impossible to get rich with the currency market, especially if starting from a disadvantaged position, that is, when you have little knowledge and little capital. In favor of this thesis, there are some elements. Forex Trading is truly a complicated activity. There can be no doubt about this. After all, it is one of the first truths you learn about currency trading. Those who study learn it as soon as they start reading books, while those who make the unfortunate choice of improvising as traders learn it directly on their own skin. There are no official Forex Trading schools. This is well known. Neither at university nor at school are useful notions taught to become currency market traders. Of course, those with a degree in economics and finance start with an advantage over those who are completely new to the subject, but the training path is equally complicated and long. Above all, it is carried out as a self-taught individual. The risk of making mistakes in this phase is very high, with dramatic consequences on the results front. Starting with a small capital is risky. To be clear, not everyone starts with low capital. Laypeople, however, that is, those who have approached the world of Forex from the outside, partly out of necessity and partly out of prudence, begin with a few hundred euros or at most a very few thousand. It is a natural, understandable, perhaps even wise attitude. Too bad that in this way it is really difficult to make any headway. When talking about returns, we are talking about a few percentage points. Now, 2% of 1,000 euros corresponds to 20 euros. Is it really worth it? Above all... Can we talk about earning?

Why it is possible to make money with Forex

The points we have just described risk discouraging some people. However, there is good news: that is only one side of the coin. There is another much brighter side, which seems to suggest that yes, making money with Forex Trading is possible. Of course, it is never easy, but the possibility is there and not even as far away as it might seem. The reasons? Here are a few. There are standardized learning paths. It is true, those who study do so as self-taught individuals, there are no official schools or training institutions. This does not mean, however, that training paths do not exist. Many brokers provide at least one. In this way, the risk of studying poorly or choosing educational content ineffectively is reduced. Therefore, despite the complexity of the market, despite the amount of study being huge, it is really possible to learn to trade and make money. Many lose, but those who win take the whole pie. One statistic says that about 85% of traders end the year at a loss. A very high percentage, which would make anyone run away. On closer inspection, however, the situation is not so tragic. Firstly, because compared to other activities, the winner-loser ratio is not that bad. Let's think about job interviews: for many, a 15% success rate is a utopia. Secondly, it means that for those who survive the bottleneck, there is the possibility of real prairies opening up. In short, for them, making money online with Forex Trading is a more than realistic prospect. Even with a small capital, it is possible to produce, in the long run, good earnings. This point seems to contradict the one in the previous paragraph. In fact, by default, there is a risk of earning paltry sums. However, it is sufficient to take some precautions to be able to break even, accumulate capital and increase one's return in absolute terms. For example, financial leverage, which when used with extreme wisdom (e.g. ratio never exceeding 1:10) allows you to multiply profit margins.

Two golden tips

As we have seen, making money online with Forex, although very difficult, is possible. It is an alternative that can be considered as potentially profitable. However, it is good to dwell on two aspects, indeed to provide two tips that cannot be ignored. The first consists of studying. It is literally impossible to improvise as a trader and hope to survive for more than a few trades. It is necessary to study, and study well. Therefore, pay the utmost attention and pour the best energies into the training path. The second, on the other hand, has to do with the concept of prudence. The market is complex, full of pitfalls. The trader, however, has two very effective weapons at his disposal to keep complexity and uncertainty at bay: money management and risk management. These two expressions indicate two disciplines that allow you to keep capital under control and manage risk. Thanks to money and risk management it is possible to calibrate trades so that even in the worst case scenario the damage is far from irreparable, rather quite digestible. Therefore (and this is the advice), never give up on these two disciplines, indeed become experts in them, acquire their secrets. Finally, a piece of advice that is not exactly technical: pay attention to the psychological sphere. That counts too, in fact... It counts a lot. Stress and emotional pressure never leave the trader, not even the most successful one. You can come to terms with it, though. Of course, it takes time, a bit of experience, but, in the end, it is possible to act on your own mentality, transforming it into a winning card or even an ace up your sleeve. If possible, act immediately from this point of view. Integrate psychology into your study path, arrive at your appointment with the market prepared not only technically but also emotionally.