What is Forex for dummies. Forex for dummies - what is it and how to make money on it? Getting started as a trader
How to start trading Forex and where to get lessons for dummies? How to work with the trading platform for beginner traders MetaTrader4? Where should you start analyzing the Forex market?
Hello, dear readers! This is the author of the HeatBober website, Alexey Morozov. We continue our acquaintance with the Forex market, today we will talk about the basic knowledge necessary for trading.
I have successfully traded on the Forex exchange with the largest Russian brokers for several years. Based own experience and conversations with professional traders, I can confidently say that without awareness of the material below, trading is simply impossible.
So let's get started!
1. Forex for dummies – basic terms and concepts
We will talk about Forex terminology throughout all articles devoted to this topic. Within the framework of this material, we will only cover the concepts of “trend”, “support and resistance” and some others.
You can get acquainted with these fundamental names in more depth in the material “”.
Most of the time, the foreign exchange market is in motion, which can go either up or down. Therefore, the first two types of trends: ascending(aka upward or bullish), descending(aka downward or bearish).
For successful trading, remember the key definitions:
Bullish trend observed when a new peak updates the previous one, and a new trough does not fall below the previous one
In a downtrend the situation is reversed:
Bearish trend is then observed, a new depression updates the previous one, and the new peak does not rise higher than the previous one
An example of a bullish trend that is apparently close to ending or has already ended:
Ended bearish trend:
Sometimes prices move in a “corridor”: they either rise or fall within certain limits. We wrote earlier that a similar situation is often observed for several days before planned important news.
"Corridor traffic" is called lateral trend(aka horizontal or neutral). For this trend, it is important to remember the following:
Sideways trend observed only when the amplitude of fluctuations is at least 300 points.
If this rule is not observed, trading should not be carried out under any circumstances. In the example below, we see a sideways trend with an amplitude of 158 points - not enough to open positions.
Let us summarize the above in table form:
During the movement, prices rely on or are pushed away from invisible lines, which are called “support and resistance lines.” To carry them out, it is enough to connect the peaks or troughs.
If the price breaks through support or does not reach resistance, this is a signal of a weakening trend. If the price does not reach support or breaks through resistance, an acceleration signal:
The price on the screen above “confirmed” the support (yellow line), but did not touch the resistance (blue line) - the reversal signal was confirmed: the market did not update the top, and then broke through the support.
Let us remember one more very important point:
Transactions can only be opened in the direction of the trend – if it is rising – buy ( Buy), if downward – sell ( Sell)
These were the general principles of making money on Forex for a beginner, but everyone wants to become a professional, right?
2. Where to start analyzing the Forex market?
When opening any trade, it is important to rely on something, since trading “by intuition” or with automatic robots inevitably leads to failure. There are two main areas of market analysis in Forex: technical And fundamental.
According to technical analysis, schedule prices contains all the necessary information - to make a decision to open a transaction, you just need to study the price history.
In the article “” we will talk about the postulates of Charles Dow, one of which says “The market knows everything” - thereby confirming the logic of the technical direction.
According to fundamental analysis, prices in markets exist and change under the influence fundamental factors, which we will discuss in detail in a separate article.
Example
If a state begins to actively export its products to the market, its currency will inevitably increase in value - there is a fundamental economic basis for this.
Technical analysis is carried out on any timeframes, but, as a rule, the maximum time interval is one day. Weekly And period timeframes are the path of fundamental analysis.
Mastering fundamental analysis is much more difficult than technical analysis, so we will pay special attention to the second area.
Technical analysis methods:
- Graphic(classic) – analysis of graphs. This includes trading strategies based on patterns, equidistant channel, Fibonacci lines and many others.
- Candlestick– several hundred stand out candle models, predicting certain changes in the market - “maribozu (bald candle)”, “long-legged rickshaw”, “hanged man”, “hammer/shooting star”, “tombstone” and so on.
- Indicator– use of special programs for trading (see article “”).
- Wave– the Elliott wave theory is controversial, but many traders trade using it and make very good money.
Over the course of several articles, we will review all of these methods in fragments, focusing on classical analysis.
Now let's talk about how to reach the pinnacle of trading prowess with maximum efficiency.
3. How to quickly achieve success - the main stages of Forex trading
Any professional growth can be represented as a sequence of steps, Forex is no exception. Successful traders follow the path described below.
Stage 1. Select a broker
In a separate article “” we will talk about what to rely on when choosing a broker. There are several factors, first of all, licensing (in Russia so far only three brokerage firms have licenses).
The second is trading conditions: minimum lot, number of instruments, spread size. After reading all the articles in the stock trading cycle, you will understand how to figure it all out and not get confused.
Stage 2. Learning to work in the trading platform
As a rule, brokers provide trading instructions, but this does not always happen. Below we will talk about trading in the most popular platform today called MetaTrader4.
It is important to be able to work with tools, use alerts, and trade “ in one click“- without all these skills it will be difficult for you.
Stage 3. Gaining knowledge
If you do not understand financial markets, you will not be able to trade, this is an unambiguous fact. In previous articles, we gave several instructions for “mastering” the market.
You shouldn’t think that to succeed in Forex you need to study for five years, like in a university - if you spend 2 hours every day for two to three months, you can form a good understanding of the market and master several strategies.
This will be enough for a successful start, but in the future you will need to continue learning.
Stage 4. Replenish your trading account
When we open a trade, we set the level Stop Loss– if the price goes against us and reaches it, the transaction will be closed with a minimal loss. Losses due to Stop Loss should not exceed two percent of capital.
Almost all traders agree with this: 2% reserve the right to make another 49 transactions and “win back”; psychologists have noted that due to such losses, we do not lose control of our minds, but continue to think sensibly.
Calculations show that for trading on timeframes from 15 minutes to 1-4 hours, covering Stop Loss with two percent of capital requires at least two hundred dollars– this is the optimal deposit size for a successful start.
Stage 5. Choose a strategy and follow it
The essence of any strategy is the excess of the number of successful transactions over unsuccessful ones, so when trading you must be guided by a clear plan.
We will look at short-term and intraday strategies in the future, and you will figure out where to enter a trade, where to exit, and at what level to set the Stop Loss.
4. How to work in the MetaTrader4 trading platform - 8 simple steps
Many companies are trying to create their own platforms, but so far nothing better has been invented in comparison with MetaTrader. Following eight simple steps will give you the most complete understanding of this program.
We will return to MetaTrader in other articles, for example, in “”, so the material presented below must be studied carefully.
Step 1. Download the platform
MT4 must be downloaded from the website of the broker with whom you plan to cooperate: the set varies financial instruments and some minor parameters.
Installation is straightforward - the program is downloaded to drive C and opens automatically.
Step 2. Log in
A trading account, as a rule, is opened on the broker’s website - you receive a password and a server, and connect to it.
Step 3. Create a template and set up charts
To trade successfully, we will provide charts in the right type, let's remove everything unnecessary. At first, only four currency pairs are available, but you can open new ones without any problems.
To configure the chart, right-click on it and select “ Properties"or just press F8. A window opens with two tabs, the first one is “ Colors" Here we change the color scheme to “ Black on White”:
Now in the " Are common» put the necessary checkboxes and remove the unnecessary ones as in the screenshot below:
Great, we have successfully set up the schedule! In order not to carry out this procedure with each currency pair, we right-click on the chart and select “Template” - “Save Template”:
We save to the folder that opens (for us it’s Templates). Now, to set up a new chart, you just need to select the saved one in the list of templates and click on it.
Step 4. Install indicators
We talked in detail about installing indicators in the previous article. Let’s repeat: to install a program, you need to select it in “ Navigator", drag it onto the chart and configure the parameters.
Step 5. Set up alerts
Sound notifications or alerts will significantly improve your trading - when the price reaches a certain level, you will hear a signal that will be repeated periodically.
To configure, right-click in the desired place on the chart and select “Trade” - “Alert”:
After clicking, a red arrow will immediately appear on the screen; when the price touches it, a signal will sound. If the notification is activated by a mouse click, then in the settings window you only need to change the timeout and the number of repetitions:
“Timeout” is the time period after which the signal will be repeated, the minimum value is 10 seconds, “maximum repetitions” is the number of times the alert will make itself known.
Step 6.
In almost any strategy you need to determine the trend. This can be done either using the indicator or the “Drawing Trend Line” tool - connecting each top and bottom:
After trading for several days, a beginner gets the hang of it and determines the trend simply by looking at it, but at first it can be a little difficult. In the figure and above, both trend lines and the MA indicator helped us in determining the trend.
Step 7
To open a deal, click “Open order” on the toolbar, or press F9, or double-click on the chart. The window looks like this:
The lot is indicated depending on the capital (more on this in other articles). Stop Loss and Take Profit must be entered directly at the moment of opening a position, at what level depends on the trading strategy.
When the order is opened, trading begins - we will see the profit or loss online on the board.
This concludes our brief tour of the MT4 terminal, but we will return to certain points in other texts.
5. How to work with graphical tools - useful tips for beginners
Analyzing the questions that newbies have, we have prepared three recommendations for some elements of the MT4 platform.
When you draw a trend line, by default it is drawn as a “ray”, but you can also make a “segment” - right-click on the line, select “Properties”, and uncheck the box in the “Parameters” tab:
In the “General” tab, you select the thickness and color, which can also be important. If you click on the extreme points of a segment, you can change its slope; clicking on the center allows you to move the line.
If you hold Ctrl and start dragging the line to the side, we will get a parallel “copy”:
Two more points. " Crosshair"shows the height from one point to another, and not the length of the line (contrary to the misconception of beginners). So if you move it horizontally, the number of points will not change.
Sometimes a beginner wants to rewind the chart to the side, but it stubbornly comes back. To prevent this from happening, you need to turn off autoscroll - the green arrow on the toolbar:
The red arrow, on the contrary, “pushes” the chart to the side, opening up more space for graphical analysis.
The video will allow you to get acquainted with MetaTrader on a more professional level.
6. Basics of profitable Forex trading - 5 golden rules for the novice trader
As we approach the end of this material, we will point out five rules that should never be broken by those who want to trade on foreign exchange market successfully.
The largest Russian brokers provide free training for everyone who wants to learn trading.
Rule 1. Always control your emotions
The great trader of our time, Alexander Elder, says that most people on the stock exchange are controlled by two emotions: fear and greed. They equally deprive the ability to think rationally.
Never follow your emotions, no matter where the price goes - in your direction or against you. Emotions definitely lead to death; strategies require cold calculation and sober reason.
Rule 2. Strictly follow the chosen strategy
As we have already said, strict adherence to the chosen strategy will not give you constant profits, but will increase the number of successful transactions compared to unsuccessful ones, so you should not deviate from the intended trading plan under any circumstances.
If you doubt the logic of a strategy, do not use it on a real account - conduct a thorough analysis on a “demo” account, and then risk your own hard-earned money.
Rule 3. Manage risks wisely
Set a Stop Loss according to your strategy, measure the distance to it and determine how much you will lose if the price touches it. If possible losses exceed two percent of your capital, do not open a deal.
Do not try to take big profits by risking large sums. A more reasonable way is to increase the deposit or take money under management (through the PAMM account service), receiving more profit with the same risks.
Rule 4. Always study
To successfully follow the strategy, basic knowledge and understanding of the very essence of the trading plan is enough. But if you have a burning desire to become a real professional, study constantly, love the market.
Rule 5. Practice constantly
You need to trade Forex every day, no matter how much time you devote to it: constant trading builds a trading skill, without which success is impossible.
It is advisable to keep a diary in electronic or printed form and write down the results in it, provide printouts of graphs, and note your emotions.
7. Conclusion
Dear friends, in this article we have already come close to real trading - we have learned to determine the direction of the trend, got comfortable with the trading terminal, and figured out some of its useful functions.
In subsequent articles we will look at a variety of trading strategies for short- and medium-term trading, so you can move on to making transactions with “real” money.
If you want to achieve great success in Forex, you need to constantly improve in this area. That being said, there is nothing better than reading books written by professional traders. For beginning traders, the Forex for Dummies book will help them understand the intricacies of the foreign exchange market, and experienced traders More advanced books with examples of real trading situations will be of interest. Unlike paper publications, e-books have a number of advantages: they can be downloaded to your computer absolutely free, they do not take up much space, you can increase the font size, and also use a convenient text search. Despite the abundance of books devoted to Forex trading, it is not so easy to find a truly high-quality publication. Below are books on Forex, reading which will help you develop money management abilities, trading skills and learn to control your emotions.
A. Kulikov “Forex for beginners”
This book is based on the author’s experience in Forex trading, so it will be of interest not only to beginners, but also to experienced traders. It describes the basics of today's approach to building trading systems, money management, market analysis and trader psychology. The first section of the book includes a theoretical part, which is presented in the form of a reference book for a stock speculator. The appendices at the end of the book will help you systematize your knowledge.
A. Elder “Trading with Dr. Elder”
This book represents 20 years of experience of psychiatrist and practicing trader Alexander Elder, and was written as a Forex book for dummies, which can be downloaded for free from the link below. The first part of the book is addressed to those who first encountered the concept of trading. The second part examines the three main components of successful trading: finance, method and psychology. Finance refers to the rational management of money, method is what you should use to guide your decisions when opening trades, and psychology is the development of psychological rules that help you stay cool during market noise. The third part of the book talks about how to properly organize time and streamline the work of a trader.
E. Lefebvre “Memoirs of a Stock Speculator”
The first copy of this book was published back in 1923, but its popularity among traders remains to this day. This book is the biography of Jesse Livermore, one of the most famous speculators in the history of trading. Despite the fact that the book takes place at the beginning of the twentieth century, it remains in demand today. The description is carried out in an artistic and journalistic style, so the book is read in one breath. This book is about crowd psychology and change market demand as if about an event that happened a couple of days ago. It is possible that interest in this book will not subside even after another hundred years.
M. Kovel “Turtle Traders”
The book is dedicated to one experiment of the famous Chicago trader Richard Dennis, which was that anyone who was previously unfamiliar with the financial market can learn trading. He placed an ad in the newspaper inviting everyone to attend a two-week course. Out of several thousand applications, only 23 people were selected who managed to earn $100 million for Richard Dennis, and themselves became successful traders. After reading the book, you will learn the details of this experiment, and will also be able to study its results in detail. The book will be especially interesting for those who are not afraid to experiment on Forex or want to try themselves in stock trading.
Download the book for free (part 1):
Download the book for free (part 2):B. Steenbarger “Trader's Guide”
This book explains in detail what trading is, which trading style to choose for yourself, how to make the strategy effective, and much more. What are the advantages of this book? Firstly, more than one generation of professional traders has grown up on the basis of the teachings of Professor Steenbarger. Secondly, special emphasis is placed on studying the psychology of the trader. Finally, the book is an excellent tool for achieving high results in any activity.
All books are archived using the WinRAR program and are presented in .doc, .pdf and .djvu formats. To read a book in .doc format, just run the standard Microsoft Word program. To read books in .pdf format, you must install free program Adobe Acrobat Reader, and to view books in .djvu format you should install the program.
If you are interested in speculation in the foreign exchange market, then we will teach you all the intricacies. Forex trading for beginners. Success of making big money. Basic concepts of the financial market, terminology, essence of the work. How can a beginner with minimal capital start making money within 2 weeks after starting to learn how to trade in the market? What are quotes, stop losses and patterns? The article “Forex Trading for Beginners” will tell you how to become a trader.
How to make your first money on Forex in a week
If you have never dealt with financial exchange and don’t know what a “bullish pattern in a downtrend” is, this article is designed to help you figure it out as quickly as possible.
The main question: can a person whose knowledge is limited to the concept of “financial exchange” make money on Forex? This interests tens of millions of people and we will try to answer this question in detail. We will try to answer in simple words questions regarding terms, basic analysis techniques and other nuances that concern you.
A financial exchange is a specific type of market in an economy where money or financial assets, without the use of direct-use goods and services. It should also be noted that speculation on the Internet differs significantly from the real thing. It is much easier to do business here; there are many tools to increase the profitability of your activities, so you will earn many times more online.
What is Forex
It is an online currency exchange where traders can enter the market. Forex is part of the world financial system. Money trading takes place here - the exchange of one currency for another. The task is to make money from the difference in rates and receive income from the rise or fall in prices of world and digital currencies. Forex has its own laws and rules, according to which both beginners and professionals work.
By deciding to earn income by betting on the rise or fall of currencies, you take on a certain responsibility. For your actions, for your decisions, for your income and losses. But sometimes, a mistake is worth it big money. Trading is not a predictable thing. Suffice it to recall the story of the legendary financier George Soros. How he made capital by collapsing the pound, and subsequently lost the money he earned. Avoid these mistakes.
Psychological factors should not be neglected. Often the thirst for profit destroys many young “fighters”. Remember. Only tactics, forecast and cold calculation.
“The key to trading success is emotional discipline. If intelligence was the key, then many would make money trading... It will sound like a cliché, but the only reason people make money in the financial markets is because they don't cut their losses." (Victor Sperandeo)
There is a myth among beginners that in order to make money you need to monitor charts around the clock. This is wrong. It is enough to develop an action plan and configure the program. You can even set the settings so that the program will make transactions for you.
Basic Concepts
Before you begin the operation, you need to understand the terminology. This is a base, like an alphabet, which must be mastered before you begin to “read”.
Forex – from the English FOReign EXchange Market. Translated, this phrase means foreign exchange. Exchange money on Forex. The main principle is the free conversion of money, without any interference from the state.
The main participants in the process are traders. These are those who engage in speculative operations and make money on exchange rate differences. Trading processes between the financial exchange and the trader are carried out by an intermediary - a broker. Choosing a good and reliable broker is the most important stage in the work of any trading participant. Despite the fact that modern brokers offer almost identical conditions, some of them are not good partners, not delaying payments and ensuring the safety of funds for their investors. Before deciding on an intermediary organization, check out the ratings, which are easy to find on the Internet.
To make transactions you will need special program– terminal. This is software that is installed on the user’s PC, thanks to which you will explore charts, analyze information and enter into transactions. Most popular model trading terminal is MetaTrader4. Previously, before the absence of TT, traders had to call their broker and request prices. With the advent of MetaTrader4 or other similar software, this has become much easier. You trade directly in the program.
Forex is a system, discipline and hard work. If you are ready to invest in training and comprehend this interesting science, then pleasant bonuses await you.
Terminology
Timeframe– this is a graphic scale that determines the minimum steps of quotes displayed in the terminal. For example, an hourly timeframe implies the presence of hourly candles on it, and a daily timeframe implies the presence of daily candles. It turns out that the larger the timeframe, the more time it can cover, but then the accuracy of the analysis decreases. Those who have been trading for a long time and make good money are accustomed to using several time frames simultaneously to adequately assess the situation.
Leverage– this is the proportional ratio of the amount deposited to the funds for which a transaction can be opened. It allows you to earn money this way. Choose a leverage based on your preferences, and you don’t have to pay anything for it. For example, the deposit is $100, but you want to make a deal for $10,000. In this situation, the leverage is 1:100.
Order is a position in Forex. It is the order that allows you to buy or sell currency quotes.
Lot – this is the usual volume of an order, that is, a position on a currency exchange. Typically, one lot is equal to one hundred thousand dollars, but experienced traders only trade certain fractions of a given lot. By the way, if it weren’t for leverage, it would be simply impossible to open accounts with small deposits.
Indicators– these are computer programs built into the platform and analyze the market situation. It is on these trading indicators that the lion's share of strategies is based.
Candles- these are the main components candlestick chart. Candles display the movement of quotes over a certain time. Thus, a minute candle provides data on the price level at the time of opening, at the time of closing, the maximum and minimum price values at that time.
“Markets are constantly in a state of uncertainty and fluctuation, and money is made by calculating the obvious and betting on the unexpected.” (George Soros)
In order to master the intricacies of working on FOREX, you need to familiarize yourself in more detail with general principles speculative trading. They are not so complex and do not require deep knowledge, but they consist in simple rules and calculations, which for the most part are carried out automated systems and the terminal itself.
Before you proudly call yourself a trader, master the terminology and study such concepts as: trend, consolidation sphere, swap, margin, pattern, support and resistance level, StopLoss and TakeProfit.
Quotes
Or currency pairs, this is a proportional ratio of the prices of 2 currencies. They display the ratio of one price to another. The first one in the pair is considered the main one. Its value is always equal to one.
- EUR – euro,
- GBP – British pound sterling,
- JPY – Japanese yen,
- CHF – Swiss franc,
- CAD – Canadian dollar,
- AUD – Australian dollar,
- NZD – New Zealand dollar.
These currencies form pairs for which greatest number operations, since they are more liquid on the world market.
The most common and important pairs: USD/EUR, USD/JPY, USD/GBP, USD/CHF
Step-by-step instructions for starting trading
1. Carefully study the basic information related to the “for dummies” category. A beginner is a person who has nothing to do with finance, so for starters it’s a good idea to master the entire trading base, which is what you actually do in this moment.
2. Learn the rules of the chosen trading strategy as “Our Father”, because this is future income, because it determines whether you will earn money and how well. You need to follow certain laws of currency trading and not deviate from them under any circumstances. The chosen approach must be reliable and tested before you by other market participants.
3. Master the basic terms.
4. Choose a quality and trusted intermediary. The security of investments and quick withdrawal of earned money are determined by the choice of broker. Unreliable trading partners may provide freezing websites, not provide up-to-date currency quotes, and so on.
By following these four simple steps, you will quickly learn how to make a profit from your trades without having to worry about the big mistakes that most beginners make. Of course, mistakes will still occur, but they will not bring you those colossal losses that are quite real if you trade without tactics or work with a fraudulent broker.
How does speculation happen?
If you have ever been to a regular food market, then rest assured that you have an understanding of how the whole process happens. Let's say you need to buy a product. Before purchasing, you need to look around and find a seller. Next, you ask for the price, for what amount he is ready to give his product - this will be ASK, The offer price at which the seller is willing to sell his goods. Thinking it’s expensive, you start haggling. And you name the amount acceptable to you - this is BID, or demand price.
Let's translate the described process into Forex terminology. You buy currency and open a position byu by price ASK. Or sell the asset at cost BID and open a deal sell. The difference between these two values is called SPREAD.
Market analysis
What determines the value of a particular currency? Similar to the classical market, the price is determined by supply and demand. The more people want to purchase currency, the more expensive it becomes. And vice versa. The least attractive assets are not in demand and fall in value. the main task determine the trend and possible price direction.
Looking at the graphs, you can see a certain pattern. Value does not move spontaneously. It has its own rules. Technical and fundamental analysis will help you understand these nuances.
As opposed to fundamental analysis, technical analysis is based on statistical and mathematical calculations. It includes charts, patterns, indicators and more. Forecasting is based on the history of trends and the price path of a particular currency.
Fundamental analysis is a type of market analysis when you analyze not the chart, but the factors influencing it: news, politics, speeches of country presidents and other global and local events. It can also be various economic news, which includes data on domestic gross product, interest rates, unemployment rates and so on. Economically, news can determine the trend of quotes with a high degree of probability. And it helps financial professionals use this information to trade successfully.
The most popular newbie questions
Can I make good money without understanding anything about economic matters?
This question is the most pressing among those we have heard. How can those who have never had anything to do with finances achieve success in Forex? Yes, you need to know a lot, but why don’t you acquire this knowledge? You can complete the training in the shortest possible time. Master the basics, and in the process of trading on minimal risks learn what real professionals know.
How to start?
For profitable trading you need to be well prepared, choose a strategy, find a suitable intermediary in the form of a broker and master some of the nuances of trading. The lion's share of beginners perform operations without any preparation at all, which is their main mistake. Despite this, it is very possible to make a stable profit; the main thing is not to be lazy and invest time in gaining knowledge.
How to choose the right trading strategy?
A trading strategy is a list of certain laws for beginners and professionals. Speculation without any tactics is simply irresponsible stupidity that will not lead to favorable consequences. Remember this! All that remains is to choose the right system. How to do it? Before choosing, ask yourself the following questions:
1. How often do you want to trade? There are approaches that require sitting at the computer for 3-4 hours every day to open a large number of positions intraday. On the contrary, there are those that do not require daily visits to the trading platform. They are called scalping and long-term trading. There are also medium-term trading, which allow you to open positions for up to 1 week.
2. What analysis method do you plan to use? You already know that there are technical and fundamental analyzes. Each trader must determine the method of analysis according to his skills, talents and preferences.
Getting acquainted with the tools of technical analysis and studying the fundamental ones in more detail is the key to success. Start doing this right now. You will find all the comprehensive information on our portal.
“The question of how to trade profitably cannot be answered by any book, guru, or strategy. Success comes over time if you put in enough effort." - Bret Steenbarger
How much money should I top up my account with?
Basically, you can start trading even if you only have one buck in your trading account. Of course, this is in theory. Please note that a small deposit will bring a small income. In order to consistently earn money on Forex, you need to have a deposit of at least $250 if you plan to become a professional in the future. It's not that large sum and any citizen can afford it.
How to choose your account parameters?
During registration, you will set up your trading account: leverage, variety, swaps - the profitability of the entire venture will depend on your choice. Review all parameters carefully for accurate and efficient settings.
When is the best time to trade?
A big mistake beginners make is working at the wrong time. There are times of day when the schedule is very easy to predict. For each couple, this is its own interval. If you trade only at this time, you can minimize risks and increase profitability.
Which quote should I choose?
Most beginners ask which pair to choose. Start with the standard ones, but over time, learn the features of 4-5 currency pairs in order to be able to open the most profitable and convenient transactions for you and increase your income.
Example transaction
The deposit is $500. You have decided to open a trade on the EUR/USD pair. After analyzing the trend, bet on an increase in the exchange rate. Open a position of 0.1 lot at the quote offered by the broker at 1.5455. To increase profitability, you decide to work with a larger amount and take out leverage.
Now you have + 10,000 EUR for which you paid 15 455 USD.
After some time, you decide to close the deal. You are offered a sale price of 1.5655.
You sell previously purchased 10,000 EUR for 16 155 .
And calculate your profit: 15,655 – 15,455 = 200$
The larger amounts you trade, the greater your earnings will be. But be careful. The risk of significant losses if the forecast is incorrect is similarly high.
Parting words
This article was supposed to clear up the fog around such a complex and incomprehensible Forex market for beginners. If you work hard and absorb knowledge like a sponge, you can really start receiving money after 2-3 weeks of training. Having thoroughly understood this issue, you open up excellent prospects for yourself in the future.
An online loan is money borrowed in the amount of up to 100 thousand rubles from a microfinance company (MFC) or microcredit company (MCC), issued via the Internet. Microcredit in Russia is regulated by the law “On Microfinance Activities”. Companies engaged in short-term lending have a license registered in the register of the Central Bank. More often, online microloans are taken out until the next salary, so high interest rates don't scare. IFC and MCC offer a variety of loan conditions for individuals and legal entities.
Advantages
- You can get money without leaving your home
- For an online application, you do not need to collect a package of documents; usually only a passport is enough
- Transparent information about the amount that will need to be repaid
- High chance of application approval - many companies issue money without refusal
- Quick decision making and money transfer
- Loyal attitude towards borrowers with bad credit history
- Possibility of early repayment
Flaws
- Short loan term
- High interest rate
- Inability to receive more than 100,000 rubles
As you can see, microcredit has more advantages. The main condition is to repay the debt on time. Therefore, if your income is unstable, it is better to take a small amount so as not to spoil credit history.
Answers to popular questions
Preparation
Which MFC or MCC to choose?
The main reliability criteria are reviews. They can be viewed for each company on our website. No less important is the K5M rating (from 0 to 10), which shows how loyal the lending conditions are offered by the organization at the moment. This includes the speed of consideration of the application, the number of documents during registration, and much more.
How to prepare for the application?
Provide only reliable information and write without errors. Attach a color scanned copy of your passport to your application ( home page+ registration) and current contacts of guarantors. Get a personal name Visa card or MasterCard with CVV2 code to receive funds. It would be a good idea to look neat for possible photo or video identification.
What is the maximum amount I can borrow for the first time?
On average, from 1,000 to 30,000 rubles based on a specific multifunctional complex or multicultural complex. The size of the first microloan depends on the size of the borrower’s regular income, as well as the period of use. The amount is also affected by the number of applications and conditions for certain programs, as well as the recipient’s good credit history.
For how long can I get a loan?
Short-term usually up to 30 days. But there are also long-term loans for six months to a year. Quite rare, but still there are microloans even up to two years. Additionally, some MFCs and MCCs allow you to extend the contract, thereby extending the period by a certain number of days. Both with maintaining and changing the terms of service.
How to get approval with a bad credit history and delinquencies?
There is no need to go to all companies at once. There are 3 ready-made solutions: fix financial history in the BKI (if it was damaged due to the fault of the banks) with the submission of an appropriate application to the credit history bureau, improvement with a chain of microloans and using two credit cards from partner banks.
Will my application be approved without official employment?
Yes, some services provide microloans for unemployed citizens without refusal. Among them there are those who issue money only with a passport and telephone number. Sometimes such a borrower may be required to provide collateral - then the available amount and loan term will increase, and the interest rate will decrease.
Decor
What is verification?
Verification is a check of the personal data of a potential borrower. Performed by phone call, photo or bank account. Based on its results, the degree of trustworthiness of the client is determined and a decision is made to issue money. Upon agreement it is calculated maximum amount loan, interest rate and term, as well as minimum payment.
What information is needed to complete the application?
Full name, date and place of birth, contact and passport details. Sometimes it is necessary to indicate gender, region and type of activity, as well as some other information. Also, when registering, you need to create a password, as well as select methods for issuing and repaying funds. When receiving large amounts, additional verification is sometimes necessary.
What documents are needed to confirm income?
In most cases - a passport with a registration mark and a telephone number. If the registration is temporary or you only have a residence permit, then a supporting document is required. You can also use a military ID (if you have one), a driver’s license, SNILS and TIN. The more documents, the higher the amount possible loan. When receiving a microloan of 50,000 rubles or more, you may need a certificate of salary, marriage certificate and other documents.
Some MFCs and MCCs operate online throughout the Russian Federation, but most work with certain regions. On our website you can select your city and see who, where and under what conditions issues loans. Then choose the most optimal financial product among them.
Why was my application rejected?
The most common reasons: contact or other information is incorrect, the type of employment is not appropriate, the organization does not operate in this region, or the borrower has exhausted the loan limit. The IFC and MCC also reject applications from citizens who are under 18 or even 21 years of age. In any case, try checking the data and resending the application or contacting another company.
Is it possible to get a loan without registration - with temporary registration?
Yes, you can. There are MFCs and MCCs that provide microloans to citizens with temporary registration and standard conditions. To do this, you need to present the appropriate document. The microfinance organization may also request other information that will help verify the borrower’s solvency.
How long does it take to make a decision on an application?
From a few minutes to half an hour, depending on the service and its scoring, as well as the amount and program. Having a good credit history and a correctly and fully completed application allows you to speed up this process as much as possible. At large amounts, the size of which is different for each company, applications are reviewed manually. Then the time for their consideration can be increased, as a rule, to several working days.
Receipt and repayment
How quickly does the money come in?
From a few minutes to several days, depending on the service. The speed of receipt of funds depends on the time of consideration of the application, the method of receipt - by card, account, cash or online wallet and some other data. The presence of errors in documents and the need for additional checks may increase the time it takes for funds to arrive.
Are money transferred at night and on weekends?
Yes, if the service operates 24/7, then money can be transferred online at any time of the day, on weekdays, holidays and weekends. The only thing is that due to influxes before public holidays, the period for crediting funds may slightly increase. In this case, it is better to take care of receiving the required amount in advance.
Which card is better for receiving money?
Best fit personalized card Visa or MasterCard with CVV code. Other options (instant, WORLD, etc.) are available only in a few MFCs and MCCs. Microloan payments are also possible in cash, to electronic wallets or through money transfer systems.
Yes, most MFCs and MCCs allow you to increase the period under the same conditions by 1-30 days. Among them there are organizations that provide deferment without overpayments. But only if the recipient can provide compelling reasons why he cannot repay the loan on time.
How many times can the loan be renewed?
If the company has such an opportunity, the number of extensions depends on the conditions of the organization itself. In some companies you can renew up to 10 times, and in some there are no time limits. Additional fees may apply for renewals. The loan is extended at the company office, in personal account or via SMS. We recommend that you clarify all conditions before receiving financial assistance.
Is it possible to get a second microloan if the first one has not yet been repaid?
Yes, some organizations allow you to get a second microloan if the limit on the amount has not yet been exhausted. But in order to avoid increasing debts, we recommend that you find options to repay the first loan, and then, if necessary, consider repeated applications.
Can I take out a loan again after repayment or does it take some time?
If you successfully repay one loan, then feel free to take the next one. If the borrower has a positive credit history, then they provide preferential terms for the next microloan.
WITH in English this word means “international currency exchange” - FOReign EXchange. Financial market Forex is intended for the purchase and sale of currencies at market rates.
So how can you make money in the Forex market? The information below is presented in the “Question-Answer” format; I chose the questions that novice traders most often send me.
The question that is asked most often. Unfortunately, there are a lot of scams among Forex brokers. Therefore, choosing a reliable broker is very important. Personally, my main trading accounts are opened with Alpari. The company is old and reliable (providing services since 1998), with a good reputation. There are no problems with output, they work correctly.
To work, it is enough to have a computer and the Internet to be able to work at home.
Whether it is worth taking a Forex training course or learning all the intricacies of trading on your own is up to you. But I would still recommend taking the course.
I want to trade. Cut the loot, loot!
First of all, don't rush. Forex is very difficult for beginners. The market will not run away from you. First, you should decide what you want: trade independently or transfer funds to management.
Do not forget that high risk arises from lack of knowledge, practice and improper money management. Forex is difficult for those who do not invest some time in learning the basics. Before looking for quick and easy money, you must improve your understanding of the market.
Let's say I want to invest. What's next?
There is a wonderful service for PAMM accounts. You can read what it is.
The rating of pamm account managers is available at http://www.alpari.com/ru/investor/pamm4/pamm_account/rating/
PAMM account- an account management system through which both traders and investors can make profits. Investors trust their funds to be managed by experienced and successful traders by investing in PAMM accounts. Traders, using the capital of interested investors, make profitable transactions, increasing investor capital and receiving management fees.
You do not need to trade Forex yourself - you constantly monitor the work of the manager and can withdraw your funds at any time.
In addition, every month we release ““, where we monitor the most interesting projects for investment.
Let's say I want to trade on my own. What to do?
Experience shows that learning to trade Forex so that trading brings in about 5-10% per month is not so difficult. It is difficult to maintain self-control and discipline, not to give free rein to emotions and to follow the rules.
First of all, download and install the Metatrader 4 terminal.
Again, you have a choice: trade manually or automatically with the help of advisors (programs that trade for you on autopilot).
Whatever you choose: automatic or manual trading, be sure to study Money Management!!! This is extremely important!!!
When working with advisors (trading experts), you will certainly find the Forex video course on Autopilot useful. .
What about manual trading?
The most important thing in manual trading is to follow the system. A Trading Strategies section was created especially for manual trading, which is constantly updated.
Independently conducting foreign exchange transactions Forex market provides an order of magnitude more possibilities. The higher the skill of a trader who prefers manual Forex trading, the larger volumes of money he can manage, and accordingly, the more he can earn. In most cases, approximate forecasting of price movements is not a difficult task; there are simple price models that work with efficiency of up to 90%. It is possible to find these models and learn how to use them.
There are a huge number of books from famous authors that will teach you how to use technical methods to predict price movements in markets and successful financial transactions. The books are a basic guide to technical analysis of financial instruments. The literature is specialized for both novice players and experienced specialists in the exchange and over-the-counter markets.
Something else?
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