How to Make Money on FOREX

There are may people telling you that FOREX is the largest market in the world. Yes, it is, but it is just not easy to make money on FOREX, if you don't know what you are doing or you are not studying the market well. You must know when to buy and when to sell.

I have spent some years trying to understand what separates successful traders from the ones who fail. I think a strong part of it has to do with psychology. Successful traders have spent years mastering their emotions. Many have never even heard of fear or greed.

But once you have mastered those things, you can begin to understand how the market works. Make money on FOREX doesn't have to be rocket science. Let's use one of the simplest examples to describe how it works.

Imagine a large company trying to buy parts for an important product. You the individual want to be able to buy the parts without paying a outrageous price. You go to a store and you check out a section of parts that you think will be best. The part is on sale for $79. You buy the parts and the price is $79.

After you've bought the parts, you go to the store and look around for other purchasers. Let's assume that 20 minutes after you enter the store, there are 5 customers in the store. This means that the parts that you had paid for are now going to cost you $79.

You look around and notice that some of the shirts are left discounted. There is a chance that you can get the entire price of the shirt discounted, and the price they were originally $ 79. You buy the shirt, and it is now only $79.

After the shirt is sold, you go to the store and look around for other shirts. This time, there are many people in the store and you can see that the Discount shirts are now available for only $79. You buy the shirt, and it is now only $79.

After a few minutes, 5 customers have come into the store and most of them are looking for the shirt that was on sale for $79. Additionally, since you bought the shirt at $79, you can only get it at that price, since the price has dropped.

When the store closes, you go to the store and you find out that the price that you were quoted is the price that the store is taking, and the price that you will get it at is actually $79.

As you leave the store, you notice that you can still buy the shirt at the original price that the store sold the shirt. What you realized is that while you were given the benefit of a twenty percent discount, the price that you bought the shirt with before the discount was actually the price it was going to get you at the original price. Even though you got the twenty percent off, you are not off by that much.

Remember, it is taking advantage of a price discount to make a profit, so don't be fooled. The shirt was on sale for $79, not $49.

Understanding what price discounts are and how they work is very helpful for you when you start to discuss price predictions with other traders. monitors the market and lets you know when you should be buying and when you should be selling. Hopefully, you will be able to realize what everyone is trying to tell you when you start to talk to other traders.