XMTrading: How can beginners make a little money and trade with FX? Explanation

Is it possible for beginner traders to earn a little at a time until they reach their goal through FX trading? What are the methods and trading methods? We will introduce and explain them in this article. There are two ways to fight in FX: short and long. The strategies are completely different for short-term investment and long-term investment. However, the reality is that profits do not always come out as expected. That’s why it’s important to earn money little by little.

trading strategy
How to trade to earn money
Recommended XM for short trade
1. Related

trading strategy

When actually doing FX, the most important thing is the trading strategy. The way you trade is completely different depending on whether you are looking to trade in the short term, long term, or even locally. The following are some common trading methods. A tip for starting out is to use low leverage to limit losses with small amounts of money. When you start out, be sure to check the interest rate settings, swap points, and other mechanisms and information. It’s difficult to keep at it, but it will make it easier to save money steadily.

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short trade

Short trading refers to short-term investments, and is a trade that is settled within a few minutes at the earliest and within a few hours at the latest after entry. This method is very simple, as you can fight using only technical analysis if you avoid economic indicators and political events. In addition, the time from entry to settlement is short, and the price range is not very large, so it has the advantage of being easy to make a profit. When you start, it is attractive because you can increase your profits by imagining that there are plenty of opportunities in a day on the chart. There will be many stop losses, but if you can grasp the trend, your win rate will be high.

long trade

Long trading is a strategy of trading across days, and is also known as swing trading. The weakness of long trading is that the timing of settlement can be as early as a few days or as late as a few months, so the number of trades is small and it is heavily influenced by political events and economic indicators. Not only technical analysis but also fundamental analysis is essential. However, compared to short trading, it has a larger price range, so if you can make a profit once, it is easy to make a total profit for that month. For reference, the longer the position is held, the fewer the opportunities. It is a style where you do not need to check the price movement with a tool and enter appropriately.

scalping

Scalping is the practice of targeting big economic events and even political events, aiming to make big profits during periods of price fluctuation. It requires almost instantaneous settlement, and since you are trying to make a profit during sudden fluctuations, it is very risky. If you do not trade by lowering the lot size while you are not used to it, you will suffer a lot, but you can also aim for big profits. The basic principle is to make a profit by buying and selling steadily, but in foreign exchange, you need to always look at the chart when buying and selling. To be successful, you need to calculate in advance and make money efficiently.

How to trade to earn money

When it comes to trading to earn a little at a time, short trading is the best. For those who want to steadily earn money every day, short trading is the best. Here are some reasons why. If you want to try earning a little, pay attention to the following points. As you work hard and grow, it will become easier to save money, and you will gradually find out which currency pairs are compatible with you. You will be able to easily accumulate and grow your profits on your own without the support of others. By accumulating it completely, you will be able to eliminate emotions and aim for a high return.

don’t target price range

Short trades do not aim for a large price range. Since we settle at 20 pips and 30 pips, the probability of making a profit is high because the goal is very close. Of course, the price range is small, so you won’t get a big profit per time, but you can accumulate it steadily. If this is long, you can aim for a large profit, but because the target price range is large, there are many cases where it returns and it does not go well.

Most of the market is range

Most of the market is in a range, and 80% of the time it is in a range. In other words, if you make a long trade, even if you make an unrealized profit, the trade will come back and end in a draw in most cases. In comparison, in the case of a short trade, the price range you take is small, so even if it is in a range, the probability of making a profit is quite high. If you have seen these market trends recently, you can try practicing at the same time by lowering the currency unit to get a sense of the direction. You will also gain skills by watching the candlesticks.

high interest rate

It’s the same as above, but in the case of short trades, the probability of making a profit is higher because the target price range is smaller. What’s important in trading is whether you make a profit or cut your losses, not the process. Ultimately, the more times you can make a profit, the higher the probability of making a total profit. The prices of the US dollar and the euro do not generally move significantly, so if you practice small trend following, you will ultimately be able to win. There are opportunities 24 hours a day, anywhere.

less irregular

In the case of short trades, the time until profits are taken is only a few minutes to a few tens of minutes, so it is easy to avoid political events and economic indicators. Since you can trade while avoiding the sudden fluctuations that are common in trading, there are few specific irregularities and you can prevent unexpected large losses. As a beginner, you should know that events should be avoided. When choosing the best main currency, avoid pairs with events close by. Some adjustments are necessary to make a profit according to your purpose. Take steps to do the right day trading until you have a track record.

Recommended XM for short trade

XM was originally known as a forex company with too wide spreads. But this was only recently. Now there is an account type called KIWAMI account. The spread is very narrow and very suitable for short trades. Therefore, this account type is highly recommended. Especially for those who trade in pounds, it is recommended because the spread is extremely narrow.