subject: Work From Home As A Forex Trader [print this page] Work From Home As A Forex Trader Work From Home As A Forex Trader
Forex trading has seen a massive increase in the average person using the forex market as a work from home business opportunity. There are certain advantages to this type of work from home opportunity and certain pitfalls both of which we will address in this article. For those of you that do not know what forex trading is we will start with a short explanation on how you can make money from this action.
To work from home as a forex trader one must first know how to profit from its actions, the prices of one foreign currency against another fluctuate all the time in small increments it is these fluctuations that we are able to profit from. It is usually the last two decimal places that we look to fluctuate, or in the case of the US Dollar this would represent a tenth of a cent. By betting on the last two decimal places through a spread betting platform one can profit very lucratively from the movement of these pips as they are known.
When working from home as a forex trader losses are going to be inevitable it is how well you gauge this account balance that is going to see you profit at the end of a month or quarter however often you wish to calculate your books. To start of forex trading it is best to work with a view of only risking 5% of your trading balance at one time, from this calculation you can work out how much to bet per trade.
For example, if you started to trade forex with a balance of 500, to only risk 5% you would not want to lose more than 25 so you would either set a stop loss (the maximum amount of pips you will let the trade go against you before exiting) for 25 pips when trading at 1 a pip or 50 pips when trading at 50p a pip. This is good account management and with a success rate of 80% you will see continued profits over a period of time.
How do you get started as a work from home forex trader? There are many different ways to start forex trading from self teaching from forums and free seminars to employing a professional trader to teach you. One of the best ways to learn forex at the moment with the option to earn while you learn is through a forex club; this gives you the option to share the cost of a professional trader with a group of people and trade live under the influence of a professional.
