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What Is Forex and How to Make Money with It?

Currency or Forex trading has received a lot of attentions in the past few years. However, let’s see whether it is what people really think, or it is something completely different.

What Is Forex?

Forex is the knowledge and art of trading different currencies against each other and making profit through it.

Each country has its own currency, and the currency of different countries can be bought and sold against each other. Forex traders are those who make money through buying and selling different currencies against each other. Forex is not a new business, and its history is as old as the history of money. However, computer and Internet have enabled people to trade Forex from home and through the personal computers.

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There are two kinds of Forex Traders

Forex trading is different from the money exchange business. Although a money exchange business also deals with the currencies, it is different from Forex trading and Forex traders are not money exchangers. Forex traders are those who buy and sell currencies against each other to make profit, not to offer a money exchange service to people.

1) Retail Forex Traders:

Retail Forex traders are the ones who trade Forex from home and through the retail brokers.

They are the ones who lose a lot of money and give up on Forex trading sooner than later. Most people think that it is possible to have a fixed monthly income through Forex trading, and so they start doing it from home. However, Forex trading looks easy at the beginning and when you look at the price charts. Indeed, there is no retail Forex trader who can make money consistently from trading the currencies from home and through the retail brokers.

It is becoming harder and harder to make money through Forex trading and as a retail Forex trader. Brokers get greedier all the time and try to cheat their clients more. Indeed, I have never seen a consistently profitable retail FX trader who trade currencies through the retail brokers. You can learn more here: Some Forex Trading Facts and Myths You Must Know

By the way, I forgot to tell you who Forex brokers are. They are the companies that connect you to the currency market to enable you to buy and sell currencies through your personal computer and the Internet. You can learn more about them here: Forex Brokers

2) Professional Forex Traders

Professional Forex traders are the ones who either trade for the banks or the hedge funds and financial companies, or if they trade for their own, they do it through the bank accounts and with a reasonably big capital, not through the retail Forex brokers and with a small trading account.

They don’t trade every day, because they only take the big trading opportunities to increase their wealth and capital. Indeed, currency trading is not a source of income for them. It is an investment opportunity to increase their wealth. Learn more about these Forex traders:

  1. Monthly Time Frame Is the King
  2. Forex Trading through a Bank Account
  3. Some More Advantages of Trading Forex through a Bank Account

So, the first thing you have to keep in mind is that Forex is not what the brokers and Forex signal websites advertise over the Internet. Therefore, make sure not to waste your time and money on it, with the hope of creating a source of income that makes money for you every month, consistently. It doesn’t work like that at all. Forex trading can’t be as your main source of income and full-time job. Period.

If you don’t believe this, you will be back to this article and this website after a while of wasting time and money. So make sure to bookmark this page to come back here when you remember me and this article after losing some money and wasting a lot of time. I hope you don’t rick too much.

How Can You Make Money with Forex?

Does what I explained above mean that you can never make any money through Forex and currency trading?

No, I didn’t say that. Indeed, currency and stock markets are great investment opportunities. But please note that they are investment opportunities, not sources of income. It means, you can invest a portion of your capital in currency market to increase your capital, as you do the same with the real estate and stock markets.

To do that, first you have to have a reasonable amount of capital that you can invest a portion of it in the currency market to increase your wealth and capital. This is how Forex trading and currency market can benefit you. But, if someone tells you that he makes money every day while sitting at the computer and trading the currencies against each other through the shorter time-frames, then you should make sure to ignore him, because he is lying.

Now, As I mentioned above, Forex is a good investment opportunity that enables you to invest some money and increase your wealth and capital. What if you don’t have any money to do this now?

If you don’t have any money and capital to invest in the Forex market, then you have to create a reliable and strong source of income to make money consistently. Forex can’t be this source of income at all. I explained why. Therefore, if you are unemployed and you have no job and income, or you have a job, but your income is not enough and you want to make more money, and you think that Forex trading is the solution, you are wrong. I explained about the reasons above.

What you have to do first, is creating a reliable and strong source of income. When you made enough money, you can invest a portion of it in the currency, stock and real estate markets to make more money and increase your capital. If you aren’t ready to do that now, then stay away from the Forex market, because you can’t make any money through it with a small $500, $1000 or even $10,000 account with a retail Forex broker.

This is the most important piece of advice we always give to our website’s followers.

Now, if you are ready to start from the beginning and establish a reliable and strong source of income, I suggest you to read the below articles to understand what I mean by a reliable and strong source of income:

  1. The Easiest Way to Get Rich Fast
  2. How a Reliable and Strong Source of Income and Proper Investments Make You Super Rich
  3. Trading Strategies Don’t Work If You Don’t Choose the Right Living Strategy

The below article explains how our investments strategy works to make a lot of profit in long-term in the Forex market. This is the strategy you have to follow when you have already earned enough money through the reliable and strong source of income I talked about it above: A Short Term Investment Strategy That Makes You a Millionaire

Don’t Trust the Fund and Account Managers

There are some people who claim to be skillful and profitable Forex traders. They offer you to give them some money to trade in the currency market and return some profit or interest to you every month. These are the ones you should avoid as well. Many of them are scams. The ones who are not scams, don’t know what Forex trading is in long-term. They have been lucky to make some profit for a short while, and now they think they are professional Forex traders who can double and triple the accounts every month. What will happen is that they will wipe out the whole account and all the money will be blown up. Learn more here: I Can Manage Your Funds and Accounts

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So, if you are looking for making money through Forex or Forex traders, make sure not to give your hard-earned money to anybody as you don’t risk it to trade Forex on your own. For a newbie, Forex and currency market is nothing but a money sucker. It only wastes your time and money. That is it.

Now, if you are really after making money and getting rich, you can follow a clear and straight-forward wealth building strategy: A Wealth Building Strategy to Create Wealth from Nothing

Forex market can make you richer only when you are already rich. Now that you know what Forex is and how professional Forex traders make money, you won’t make any mistakes and you won’t lose any money in this market. You are lucky if you have found this article before risking any money in Forex trading. I know some people who haven’t been as lucky as you, and so they lost their shirts before they learn that Forex trading was not what they thought. Make sure you follow us on this site, if you are serious about getting rich without losing any money and wasting any time.

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"Whether you think you can, or you think you cannot, you are right." - Henry Ford

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19 thoughts on “What Is Forex and How to Make Money with It?
  1. Michael Kavanagh says:

    Hi Chris Pottorff
    Ive just read you’re intriguing article Dec 26th 2012 on FX. I am completely new to this & want to know how do i learn this. Can you advise me please. I would be most grateful of any advice you can give. Thank you.
    Kindest Regards
    Michael Kavanagh (Australia)

  2. Michael kavanagh says:

    Hi Chris
    Thanks for the article. I’m an absolute beginner.
    I understand you have to have a working knowledge of technical analysis. Are there any text books you may suggest i look at?
    Kindest Regards
    Michael Kavanagh

  3. majid ali says:

    Thanks dear its is helpful and very good knowledge. i like the way that

    you are explaining .thank you god bless you

  4. kamran Mazhar says:

    Hi Chris
    Thanks For The article. I,m a new in Forex and i want to know about Forex Trading how to Trade in Market and how to make money u have any Text Book about Forex ?

    kamran Mazhar

  5. rupam says:

    hi i m very interested to forex trading. i have learned many things from your article. thanxs for it..

  6. Marco says:

    hello! thanks for your contribution……..i really need to start this business and i am residing in tanzania…………can you advise me more what to do

  7. Asiri says:

    Thanks for your posts… although no one like to share their knowledge, I feel you’re the most special person among them…. I’m also learning about FX but before trading with live account I want to know more about theory of FX… so I think your posts will help me for that. like to say you thank you again…

    good luck..!!!

  8. kingsley says:

    thanks a lot. Your post really help me. Please can you give me some good and reliable brokerage companies that i can open account with?

  9. kolawole peter carrick says:

    Hi… am very delighted about this. being a teen, have started gaining knowledge about FX i really appreciate this. please, is there anyway my knowledge can be more broadened about this.

  10. sobia says:

    dear charis
    h r u? i am new in forex trading i am a loser in forex trading. in our country youtube is banned i can’t see your helpful videos. can i see them on dailymotion?

  11. Jemuel says:

    I believe this is the beginning of my FOREX TRADING Journey.
    I’ve been following your POST for several days or maybe a week now. It’s very informative and I learn a lot from it. Your WEBSITE is truly a HOLY GRAIL… Thank you so much CHRIS.

  12. Chanidapa Methateenathorn says:

    Hi Chris,

    I highly appreciate your help to create this website. I will start learning forex step by step from your articles and hope to improve my skills.

  13. Arbaz Khan says:

    Thanks for creating this website. Helped a lot!

  14. SephorA says:

    thank you for sharing the information! 🙂

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