Making money by Forex trading is not an easy job. But still, there are some methods you can follow which can turn your dreams come true.
Can Forex trading be a passive income? You can make passive income by trading Forex if you used one of the following methods.
- Follow Forex Signals to Trade from a Legitimate Signal Provider.
- Copy-trading an Expert Using One Of The Copy Trading Brokers (Such as eToro or Zulu trade).
- Forex robots (Trading with Expert Advisors Cautiously).
In spite of we always recommend knowing how to trade. However, Passive income is still possible if you followed one of the ways above.
You can earn passive income by trading forex. Your current occupation doesn’t matter, a teacher, a janitor, or a farmer.
Just devote one to two hours of your time per day and earn four to six digits per month.
Forex trading is an online business. With a laptop and internet, you can do it anywhere and anytime, at home and while on vacation.
Forex is simply a foreign exchange. By converting Euro to US Dollars, keeping USD for some time, then converting it back to Euro, you may have less Euro depending on the current exchange rate.
As the exchange rate moves, banks and large firms accumulate wealth by trading various currencies.
Now is the time to establish your passive income. Take part in this large-scale trade.
1. Follow Forex Signals to Trade from a Legitimate Signal Provider
The legitimate signal provider is like a good mentor. He will gladly guide you through transactions and explain everything in between.
So, getting a good mentor is a great way to start.
However, think carefully. Investigate! Beside. A good signal provider focuses more on education
They will give you signals with appropriate technical analysis. If you win, you want an explanation, and even more so if you lose. So, you can develop the skills needed for future trades.
They will guide you on how to manage the risks. Just like other businesses, losses are inevitable.
However, the right skill set can reduce risks to a great extent.
They want you to learn and be able to climb your own path. Not to follow them blindly and pay a subscription fee for eternity.
Unworthy signal providers don’t care whether you win or lose. They will let you down the moment your money goes to nothingness.
Stay away from pretentious signal providers
People wearing fancy dresses, sitting inside a gorgeous car, and showing off earnings via an expensive phone.
Chances are, all are made-up scenes to lure you in. They just want your money and have no intention of helping.
Join trading forums to do a background check
The community will recommend reputable signal providers. On the other hand, will warn you to stay away from known scammers.
In addition, will give you pointers as a bonus. In the long run, you may find good mentors free of charge.
They have an office dedicated
Do these people really sit in front of computers, do research and analysis, and trade their own money?
Reputable signal providers, they must keep up with the ever-changing market trends, maintain their winning streaks, and give better services to clients.
Good people give back to the community
When they were a beginner, perhaps they relied on community support to get signals with the right context.
Now that they have mastered the craft, advising others is their way of giving back. They are genuine if they do.
Don’t be fooled by the number of their Facebook and Instagram followers
I, for example, can hire someone to create a group of fake followers. Fabricate good comments and delete genuine but bad feedbacks.
The same is true for the website. I can choose which comments to showcase and invent data as I please.
Consider the subscription cost
You don’t expect to amass a great fortune in the beginning.
However, it should provide the necessary knowledge and skill to help you earn.
Your investment will go to waste if you are just giving them pointlessly to these gurus.
Take every given signal with a grain of salt. You have full control over your funds. Decide wisely whether you follow them or not.
Be patient while trading
Wait for a good entry. If there is, go. If you feel there is none, sleep and look again the other day. You don’t have to put all your time and energy into watching graphs.
Bear in mind that it is a learning experience. The more you learn, the more you earn.
Manage your risks
Don’t allow yourself to lose big. Move to the winning side by diversifying funds into several small quantities.
With enough patience and the right skill set, your winnings will cover up for some losses.
Be a disciplined trader
Before you buy, you should decide beforehand your selling points get profit or cut the losses.
Execute once the set criteria are met. The upward trend won’t go up forever, while a downward trend may cause you a considerable loss.
While looking for a legitimate signal provider, consider copy-trading. Learn and earn by literally copying top rated traders.
2. Copy-trading an Expert Using eToro
Etoro was established in the year 2007. It has a proven track record and good customer support.
It has an active social community of over 10 million users, investors, traders, and speculators.
I suggest participating in the discussions. By doing so, you can get valuable knowledge and insights from friends and mentors.
Sign up for free eToro account
Complete your profile to get a virtual fund of 100,000 USD. Use it wisely to practice trading and copy-trading. Then deposit actual money when you are ready.
The initial deposit is 200 USD, which is the minimum amount to copy-trade, someone. The succeeding deposits can be as low as 50 USD.
Trader profiles are public. Take time to examine top traders with low-risk scores and leave high-risk traders for later.
If you like their style, copy them. Whatever that trader does will be automatically done to your account. If the trader wins then you win too.
Copying someone skips the initial task of analyzing data. Take it seriously though.
You can learn from their strategies.
The person you intend to copy is an actual trader. He trades his own money and cannot mess with your funds. Losing his own funds will only affect yours to some extent.
He will get a commission from your earnings. The more reason for him to uphold good standing.
The more copier he has, the more commission he gains.
Manage your risk
Diversify your funds. I recommend copying several low-risk traders. It reduces your chances of losing.
Often, winning copies will cover for a few losses.
The system only allows you to copy traders with risk scores of six and below. Scores of 7 to 10 are too risky and are not listed.
Automatically stop copying a losing trader by setting the loss amount.
Visit regularly. Scout for new talents and replace low performers. Always be curious about why they are losing and why the newly chosen talents are on top.
For a minimum amount of 5,000 USD, consider investing in CopyPortfolios.
It consists of conservative but top-performing traders.
Devote 1-2 hours a day on copy-trading or have a forex robot do it for you 24/7. But, be warned!
3. Forex Robots, Trade with Expert Advisors Cautiously
Robot or Expert Advisor (EA) is basically a computer program that does the trading for you.
It trades without emotion. It won’t hesitate to buy or sell once it sees preset criteria.
I’m not a robot fan and so I won’t recommend it to anyone. However, if you insist. Here are some criteria that might help you choose.
Test The System
Backtest the system with historical data, using tools like Quant analyzer. Then, forward the test using a demo account for a few weeks. It will give you insights on how it performs and how it will likely to perform over a period.
There should be a group of experts who actively develop the robot month after month.
Make changes as necessary to adapt to fluctuating market trends.
If there is none, it may give you good returns for some time but will eventually fail at some point.
Most robot sellers have horrible support. You can’t find anyone to talk to if you have questions or something horrible happens.
If you can find a bunch of communities saying good about the robot, then you might have some confidence.
If they are trying to sell you a robot without the money-back guarantee, then probably they are not confident with the software.
Consider The Cost
Either you pay a onetime fee or a monthly subscription. A monthly subscription robot should give you net income, not a net loss. For onetime payment robot, estimate how long will it take to reach the breakeven point and start earning.
Or, just answer the big question. Will you ever earn by using the robot?
Many robot sellers will show out of nowhere, possessing an excellent reputation, and even offering a money back guarantee.
They will lure you in, then disappear without a trace after a week or two.
Keep in mind, robots that work are held in secret. The skilled group keeps them updated with the fluctuating market. No one would sell a robot that could amass a fortune.
Don’t let the program run for you 100%. It won’t teach you anything. It never cares whether you win or lose. It won’t give you sympathy if a sudden market swing swiped your funds clean.
Forex trading can be a good source of passive income. However, don’t rush things.
Dedicate time to learn while maintaining your other income sources. Understand the market. Join communities to make friends and get good mentors. Ask for their help.
Start small and grow gradually. Trades will be easier as you master the craft. You will be able to make larger bets and turn the passive income into active.