We could all use a little extra income, and the internet offers dozens if not hundreds of ways to make money from home, but do they all perform as promised? From blogging to self-publishing books, there are many options to choose from in 2019, but many opportunities take years to develop with no immediate return. Here’s a “no-frills, no promises” introduction to trading from home that explains how to get started on the right foot. Read this to know exactly what you're getting into from the very first day.
Forex is short for foreign exchange. Let’s use a familiar example to better understand what traders are doing. Ever used those kiosks and exchange windows at the airport? For example, British tourists will bBuy euros with their pounds to spend while on their Spanish vacation. If they’ve got something left at the end, they go to an exchange and buy Sterling. This is foreign exchange in the physical.
Let’s imagine you had an exchange at the end of your street and an app telling you the world currency prices. One day, for example, GBP is high, so you go and Buy euros. A few weeks later, GBP is down and the euro hits new highs, so you Buy GBP with your euros. You’ve profited from the price fluctuations that occurred between the major banks.
Thanks to the internet and specialized software, you don’t have to leave the house to trade, and you don’t have to physically take hold of the currencies. Everything can be done from the comfort of your home or even on the go using a trading app. Brokers use CFDs (Contracts for Difference) to measure the profits and losses of the trades. You open a trade, you close it later on, and the broker updates your account based on the difference.
As with any business or service, the broker must also benefit from the transaction, and like the exchange kiosks, brokers have a spread. The price of buying is always slightly higher than when you sell. Since brokers have massive volumes from thousands of traders each day, they offer a much better spread than the kiosks, but the principle works the same.
Signing up has become much easier and faster than you might think. The recent upgrades made by the Exness development team made the user experience a priority so you can feel comfortable from the start. Protecting client data is also important to Exness, so all communications between the server and trading terminal are encrypted using 128-bit keys.
You are not required to make a deposit immediately. An Exness account comes with free access to software that traders call the “trading platform.” Essentially, the platform takes the prices of the world banks and credit associations and displays them with a small spread from the broker. The trading platform has many features for both newbies and pros including instant opening and closing of trades.
You can view the markets and even test your skills as a trader using a risk-free demo account. Only when you want to start targeting real profits must you make a deposit. Exness accounts vary and offer different trading conditions. In some circumstances, you can open an account for just $1, but such a small start is somewhat pointless and will not generate anything of real value from your time. A modest and affordable deposit can make your trades real and provide the thrill of a win, but also the experience of taking a loss or waiting out a storm.
The proper way to start trading
The natural order is to sign up, get to know the software, make a few demo trades, and start following the market. When you’re feeling confident, make a small deposit and keep your trades low. Open multiple trades with the aim to make a small pocket-change profit each week. As your understanding of the foreign exchange market increases, so can your trading budget.
Patience is a trader's best friend
You’ve got a lot to learn, and avoiding risky situations is your first goal. Good things take time, and trading is no exception. Before you start running with high leverage, take some baby steps on a modest budget. Remember, you are not obliged to trade every day. If market prices don’t seem to be appealing, then don’t trade! There will always be a surprise or two around the corner, so avoid unnecessary chances.
Save your funds for those trading pairs that show great potential. If you are winning more than you are losing, then it might be time to up your game and start targeting more significant profits.
Start learning how to trade currencies from home
Not sure how to get started? No problem. Follow this step-by-step guide.