Can You Really Become A millionaire With Forex Trading ?

There are some questions that everyone wants to trade with Forex are asking like 

• How much money can i earn ??
• How many pips can i make per month??
• Can i start with a 10$ account and can i reach 100,000 or even a million??

But the most important questions that concerns all traders is can i become a millionaire with Forex trading??

The answer could be yes or no as it's dependent on some conditions.it's not a stable process and it varies always.

So, if someone have the right conditions he will make it and if he doesn't have good conditions he won't make it.

What's these conditions??

Let's say that if you wanna turn 100$ or 500$ or even 2000$ to a million it won't be easy at all, you will have hard times,difficult situation.

I'm not saying it's impossible to do that but it's very hard"every thing is possible,nothing is impossible".

You have to be patient and overcome the challenges you will face and one of them is choosing a good broker and it could be the most important challenge as Forex brokers don’t let you grow your account consistently, because in most cases, your profit is their loss.

There are two important things u have to do 

• You have to learn and master your trading techniques.
• You have to own some money "capital" to start with.

To learn how to trade Forex, become a profitable trader and hopefully a millionaire, first you should have a source of income that supports your currency investment.

I mean this source of income should cover your expenses while trading because you could lose.it's not about profit only as it's profit and loss.

How to Make Money with Forex?

Most people think that they can learn to make money through Forex trading in a short time, and become a full-time Forex trader making thousands or even millions of dollars >> not true.

None of the real millionaires or billionaires, like George Soros, have made their wealth through full-time Forex or stock trading as They are experienced business persons who make a lot of money through several sources of income they have.

The Best Forex Signal Providers (Paid - Free)

If you are new to Forex trading then you should:

• Choose you Forex broker first.
• Create an account
• Make a deposit

Then you have to use a Forex trading signals as it tells you when to trade and what to trade at this time.

You can consider it a tool to help you place trades at the best way.

It's hard to find a Forex trading signal provider as there are lots of them so who will you choose so in this topic we will produce the best Forex trading signals providers.

-JKonFX Market Analysis: Most Trusted Signals

• Verified Statistics: Not independently verified.
• Price: plans from $30 per month.
• Year Founded: 2014
• Suitable for Beginners: Yes, (includes easy to follow videos updates).

-ForexSignals.com Trading Room: Best Forex Signals

• Verified Statistics: Yes
• Price: from $97 per month
• Year Founded: 2012
• Suitable for Beginners: Yes

-Digital Derivatives Markets: Transparent Signals Provider

• Verified Statistics: Not independently verified.
• Price: plans from $74.40 per month.
• Year Founded: 2014
• Suitable for Beginners: Yes, (includes easy to follow trade analysis)

-1000pip Builder: Signal Provider

• Verified Statistics: Yes
• Price: $97 per month + save an additional 30%. Claim Now ?
• Year Founded: 2016
• Suitable for Beginners: Yes

-Traders Academy Club: Best Value Service

• Verified Statistics: No
• Price: $97 per year - Join Now ?
• Year Founded: 2011
• Suitable for Beginners: Yes

-Forex Mentor Pro: Trading Education

• Verified Statistics: No statistics provided
• Price: from $16.40/month paid annually, or $47/month-to-month
• Year Founded: 2008
• Suitable for Beginners: Yes (includes systems and training videos)

-Baby Pips: Best Forex Community

• Verified Statistics: No - free service offering market feedback
• Price: Free
• Year Founded: 2005
• Suitable for Beginners: Yes

-Honest Forex Signals

• Verified Statistics: No
• Price: $177 per month
• Year Founded: 2011
• Suitable for Beginners: Yes

-Daily Forex

• Verified Statistics: No - free service offering market feedback
• Price: Free
• Year Founded: 2006
• Suitable for Beginners: Moderate

-Forex Peace Army

• Verified Statistics: No - free service offering market feedback
• Price: Free
• Year Founded: 2006
• Suitable for Beginners: Moderate

References

https://www.myforexchart.com/best-forex-signals

Forex reserves fall to $3.092 trillion (China's September 2019)

Yuan ⇑ 0.14%  Dollar ⇓ (September 2019)

According to Reuters News ...

China's foreign exchange reserves fell more than expected in September despite the yuan rebounding from its biggest monthly drop in 25 years in August amid a cooling domestic economy and rising Sino-U.S. trade tensions.

The country's foreign exchange reserves fell $14.8 billion in September to $3.092 trillion, according to data from the country's foreign exchange regulator Sunday.

Economists polled by Reuters had expected reserves would fall by $6 billion from August to $3.101 trillion.

The fall in September was due to fluctuations in foreign exchange rates and in the price of assets, the foreign exchange regulator said in a statement after the data release.

As a result, uncertainties in the international economic and financial environment will increase, with the global economy slowing, and trade protectionism and unilateralism on the rise, according to the same statement. Volatility in international financial markets will increase.

China has been able to keep capital outflows under control over the past year despite an escalating trade war with the United States and weakening economic growth at home.

Reserves have rebounded from an October 2018 low thanks to capital controls and rising foreign investments in Chinese stocks and bonds.

In September, the yuan rose 0.14% against the dollar after posting its biggest monthly drop in 25 years in August.

The yuan has now depreciated about 11% against the dollar since the two sides began exchanging tit-for-tat tariffs in April last year.

The dollar rose 0.47% in September against a basket of other major currencies (DXY).

Dollar DXY Chart

Related Post:

➤ US Dollar requirements to Secure a Direction

ECONOMIC RISKS:

China burned through $1 trillion of reserves supporting the yuan in the last economic downturn in 2015, which also saw it devalue the currency in a surprise move.

China's economic growth risks slipping below the lower-end of Beijing 2019 target of 6% in the third quarter or over the next year, analysts warn, as the trade war with the United States persists.

Factory activity surveys in China pointed to slight improvement in September as domestic demand picked up, but analysts believe the gains will be short-lived as the property market cools and Sino-U.S. trade tensions remain elevated.

Top-level trade negotiators from China and the United States are expected to meet in Washington on Oct.10-11 to determine if they can agree on a truce in the trade war, but most analysts doubt a durable agreement can be reached.

Higher U.S. tariffs on Chinese goods are due to take effect in mid-October and mid-December, and sources told Reuters the Trump administration is considering radical new pressure tactics on Beijing, including the possibility of excluding Chinese companies from U.S. stock exchanges.

To shore up the Chinese economy, the central bank in early September cut banks' reserve requirements for the third time this year, releasing 900 billion yuan ($126.35 billion) in liquidity. China also trimmed its new benchmark lending rate in September for the second month in a row.

China has also been ramping up its gold reserves this year. It held 62.64 million fine troy ounces of gold at end-September, up 5.2% from 59.560 million ounces at the end of 2018. The value of its gold reserves fell to $93.045 billion at end-September from $95.45 billion at the end of August.

What do you think is going to happen the next few months between China and US!

US Dollar requirements to Secure a Direction (2019 Q4 Dollar Forecast)

 US dollar has the most dramatic time during 2019. Many political and economical affected the stability direction.

• The Dollar’s level of activity measured through the 52-week range is nearly the lowest on record
• President Trump’s critique of the Euro and Yuan may signal a trade war evolving to currency war

Preview of the Q4 US Dollar trading

While there are thousands of economic matters buffeting the world's most liquid currency, there are certain considerations that have commanded the Dollar’s reins more readily these past months, and will likely continue to do so moving forward.

While trade wars (China Vs US) have been a critical point as to whether they can confer some measure of benefit or if they are clear detriment to the United States, data and sentiment surveys are starting to show clear strain on the economy. That may raises the pressure to over-taxed girders to the past decade of expansion.  what if the central bank moves too slowly, and refuses to act or the market simply deems it incapable of holding back the tides of change?

DOLLAR DXY CHART 2019

➤ View full chart via Trading View Charting Platform

Related Post:

➤ Forex reserves fall to $3.092 trillion (China's September 2019)

A slide down the monetary policy scale and/or economic struggle could readily pose a striking motivation for the Dollar relative to global counterparts. While the US central bank has thus far shown little enthusiasm to act in an effort to afford a cheaper currency and thereby growth through trade, there are forces that are pushing aggressively for just such a solution. US President Donald Trump made no effort to hide this clear interest through the past quarter.

White House could attempt a currency intervention as a bid to buy more time. In an increasingly competitive world and with elections starting to role forward, unorthodox options may look more appealing. If indeed this line is followed, the implications seem acutely straightforward for the Greenback.

Read Also:

➤ 3 Biggest Forex Trades by George Soros with Trading Strategies

Source: Daily FX

Important Forex Knowledge you need to (Margin/Leverage)

Like any new skill you learn, you should learn it's basics to better practice this skill and to make a good path on it.

There are many important things you should know about Forex trading. may be you know it so no problem at all as you can review this knowledge again.

How to Make Money with Forex?

Major Currencies

The major currencies are the most eight traded currencies"the most important currencies"and of course the most widely used in the world.these currencies are:

• USD
• EUR
• JPY
• GBP
• CHF
• CAD
• NZD
• AUD

Minor Currencies  

Minor currencies are any other exist currencies "Not Major" so we can say that all currencies are minor except the eight major we mentioned previously.

Margin 

  

When opening a new margin with any trade broker"trading platform" you should have amount of money"beginning deposit" and this amount varies from a platform or a broker to another, it could be 50$ or 100$ but for sure 50$ is the minimum possible deposit in most of the platforms.

The maximum deposit is unlimited as you can trade up to 100,000 or even millions.

What is a Pip and a Pipette in Forex?

When you open a new trade an amount of your money goes a side as initial beginning deposit for this margin.

This amount is based on:

• The currency pair you choose to trade on.
• It's current price.
• Number of units to trade.

For example, if you were to open one mini lot so instead of having to provide 10,000$ you would only need 50$(10,000$*0.5%=50$) with a (200:1) leverage or  0.5% margin.

Leverage

 Leverage is the ratio of the capital amount to used to the required security deposit "margin".

This means that you can control large amount of dollar with a small amount of capital.

Leverage varies with different brokers and in different trading platforms ranging from 2:1 to 500:1

Related Posts:

➤ Maximize your Forex Trading profit through new Technical Indicators

What is a Pip and a Pipette in Forex?

There are some concepts that you need to know when trading in Forex. these concepts seems small and unimportant to you but actually it's very important.

You don't need to just know these concepts but you should understand them as well like:

• Pip
• Pipette
• Lot

What the pip is ?

The pip is a unit of measurement to show the difference between two currencies.

If EUR/USD moved from 1.4356 to 1.4357 so this 0.0001 is one pip. this means that the pip is usually the fourth decimal place of price quote.

  

What the pipette is ?

• Fractional pips are called pipettes.
• Is equal to a tenth of a pip. 

For example, if USD/GBP moved from 1.46757 to 1.46758 so this 0.00001 is called a pipette.

Here is how fractional pips "pipettes" look like in a trading platform 

Do you know how to read pips and it's values??

How to Make Money with Forex?

How to calculate the value of a pip ?

Value of a pip is different in every currency pair as each pair has their own relative value.

Example:

• Lets take USD/CAD = 1.0200 
• Pip value in terms of base currency = the value change in counter currency*the exchange rate ratio
• Pip = (0.0001 CAD)*(1 USD / 1.0200 CAD) = 0.000098 USD per unit traded

What is a Lot in Forex ?

In the past, Forex was only in specific amounts called lots which are the number of currency units you will buy or sell.

Standard size for a lot is 100,000 units but there are another types of lots:

• Standard 
• Mini
• Micro
• Nano 

Some people show quantities in lots and others show it in units but no problem for you now in dealing with any of them.

To take advantage in the pip's minute change rates"values" you need to trade with large amounts of specified currency to find a touchable profit or loss.

Let's assume we will use Mini lot size (10.000) and we choose to trade in USD/CHF  with exchange rate of 1.4555

This will give us = (0.0001 / 1.4555)*10,000 = 0.69 $/pip.

Here are some examples of pip value for USD/JPY and EUR/USD with the four types of lot sizes:

How to Make Money with Forex?

Placing a trade in the Forex market is very easy even if you don't have previous experience with the process.

The main objective of the Forex trading is exchange of one currency with another expecting it's price will change as the currency you bought will increase in value compared with the one you sold.

Let's take a simple example for that:

• You purchased 10000 euros at EUR/USD exchange market with rate 1.1900
• After one week you exchange your 10000 euros back to us dollars with rate 1.2600
• That means US dollar has increased 0.07 against Euro.
• Your profit = 0.07 * 10000 = 700 USD

Exchange ratio means the ratio of one currency against another currency.

How to Read a Forex Quote

Currencies always put in pairs like EUR/USD because in every Forex transaction you are buying currency and selling another.

What Is a Currency Cross Pair ?

• GBP : British Pound
• USD : American Dollar

The first currency to the left is the base currency (GBP) while the other to the right is the quote currency (USD).

In buying this means how much units you have to pay from the quote currency (USD) to buy one unit of the base currency(GBP) and in previous example you have to pay 1.51258 US dollars to buy 1 British pound.

In selling it means how many units of the quote currency (USD) you will get for selling one unit of the base currency(GBP) so you will receive  1.51258 US dollars when you sell 1 British pound.

The base currency is the basis for buying or selling.

Long / Short 

• First you have to determine whether you want to buy or sell.
• If buying(means buying base currency and selling quote currency)then you want base currency to rise in value so you sell it in higher prices.
• If selling(means selling base currency and buying quote currency)then you want the base currency to fall in value so you can buy it again with lower price.
• Long = Buy 
• Short = Sell

Bid / Ask and Spread

All Forex trades have two prices :

• The bid is the price you willing to buy the base currency in exchange with the quote currency.
• The ask is the price you willing to sell the base currency in exchange with the quote currency.
• In general, bid price is lower than ask price.
• The difference between ask price and bid price is called spread
• SPREAD = ask price - bid price

What Is a Currency Cross Pair ?

In the past, if you wanted to change currencies you would convert them first to US dollars then convert these US dollars to the currency you desire.

For example, if you wanted to change Japanese Yen to UK sterling you would first convert Japanese Yen to US dollars then convert US dollars to UK sterling.

The invention of Currency Crosses made this process very easy as you don't have to convert to US dollar in every exchange"middle process".

Examples of cross pairs:

• EUR / GBP
• EUR / JPY 
• GBP / JPY
• EUR / CHF 
• EUR / USD
• USD / JPY

Calculating Currency Cross Rates

Do you want to know how currency crosses are calculated ?

It's all about numbers so if you like numbers, you will find this part interesting.

Of course trading platforms do this process automatically and you don't need to think about that but here we will explain the method and currency cross rates.

Forex Vs. Stocks

For example let's take EUR / JPY and we want to find the bid/ask price for them but why these 2 pairs ??

The answer is because both of them have USD as their common denominator.

• First we will look at the bid / ask price for both EUR and JPY.
• Let's say we found EUR/USD : (1.5230)(bid) / (1.5235)(ask).
• And for USD/JPY : (89.38)(bid) / (89.43)(ask).

To calculate the bid price for EUR/JPY you multiple bid prices of EUR/USD and USD/JPY which in our case will be ((( 136.13 ))).

To calculate the ask price for EUR/JPY we will do the same process by multiplying ask prices of EUR/USD and USD/JPY which in our case will be ((( 136.25 ))).

Is Forex Trading Tax Free?

Why Trade Currency Crosses ??

The US dollar is the reserve currency in the world so, about 80% of exchanges in Forex market contain US dollar.

Most agricultural and commodities like oil are priced in US dollar.

But why US dollar and not any other currency??

When countries want to buy stocks like Oil they have to own US dollar"Oil pricing in US dollar" so countries even large ones like China and Japan keeps reserve of US dollars in hand for easy buying and not to be in need to convert every time they wanna buy. that's why US dollar is so strong and considered the leading currency in the world.

Why Trade Forex: Forex Vs. Stocks

There are approximately 2800 stocks listed on the New York Stock exchange so will you check all 2800 stocks to know which one you will trade on ??

In currency trading, there are some of currencies traded, but market players prefer to trade the four major pairs.

Four pairs are  easier to trade than thousands of stocks, aren't they ??

Here are some of advantages of Forex market over Stocks market:

1- 24 Hour Market 

The Forex market is open for 24-hour. Most brokers are open from Sunday at 4:00 pm until Friday at 4:00 pm , with customer service usually available during this period.

also with ability to trade in U.S., Asian, and European market hours.

2- Minimal-No Commissions  

Most Forex brokers charge no commission or additional fees to trade currencies online or in the phone.

Forex trading costs are lower than other market.

3- Instant Execution of Market Orders 

Your trades are instantly executed under normal market conditions. Under these conditions, usually the price you see when you execute your order is the price you get.

Keep in mind that many brokers only guarantee stop, limit, and entry orders under normal market conditions.

Forex Trading Order Types

4- Short Selling 

Unlike equity market, there is no restriction on short selling in currency market. Trading opportunities exist in the currency market whether a trader is long or short, or whatever way the market is moving.

Since currency trading always involves buying one currency or selling another, there is no structural bias to the market. So you always have equal access to trade in a rising or falling market.

5- No Middlemen 

One of the most problems in exchanges is middlemen and any third party between trader and buyer will cost them extra money "time or fees".

On the other hand, Spot currency trading is decentralized, which means quotes can vary from different currency dealers.

6- Buy-Sell programs don't control market 

How many times have you heard that “Fund X” was selling “Y” or buying “U”? The stock market is very susceptible to large fund buying and selling.

In spot trading, the large size of Forex market makes the probability  of any one fund or bank controlling a currency very small.

 Maximize your Forex Trading profit through new Technical Indicators