Imagine How Much You Could Gain With FX Trading

If you wish to ensure good returns in your investment, invest in Forex trading since it offers you complete control over your money. The money you invest is available rather than tied up. If you had tried other investments such as real estate or stocks, you would realize that your funds are tied up. But let me tell you how much money can be made using Forex trading.

What is your aim?

In general, money is made when the investor knows exactly what he/she is doing and of course the amount invested. A sound mind is also an asset. When you invest in forex trading you can make money each time the point value rises and you lose money whenever it decreases. The important thing when investing is to check the market trends and chart analysis.

Initially, you would probably wish to invest a small amount of money, like maybe $100 and you will get a mini account. You have to be wise at this point since you are going to buy a large amount of currency. But your skills will still have to be sharp. What you're going to be doing is buying lots of currency. In general, the leverage is 100-1, which is much better then the 2-1 to 4-1 leverage equities that stock trading offer you. When you buy lots of 10.000 or more each lot equals one contract.

Let's say for starters that you have a mini or micro account and you wish to trade the $ against the Euro. So you will be using 100.00 to purchase 100 of the euro currency units   For each dollar you will control 100.00. So if you invest 100.00 will give you 10.000 units equaling a contract.

An illustration on how to earn money

When you use forex trading, you'll have what is termed as "market order" and a "stop loss order." This represents an insurance against losses. The "loss order" will stop you from losing more money than you can afford. If you buy the Euro against the dollar for 1.3455 and you set up your "stop loss" order at 1.3425, you are actually ordering that you are willing to lose 30 pips or 300.00.

On the other hand you wish to go the other way, you can set up a specific margin for profit such as 1% or even higher. For example, if the euro increases from 1.3455 to 1.3490, you will have actually made 35 pips or $10/pip. This process is short term and you can play with this every day if you wish.