25 Dec 2014

8 Different Ways of Making Money Online In Forex Trading

sijinius.com

I started trading Forex 8 years ago (since the days of Wonder banks) while I was in medical school. Of course, I used to be a Forex gambler too (lol), but I turned professional this year. 


Unfortunately, many stumble into Forex just like me (read up part of my story here) –wanting to double their/people’s money for them. While that isn't bad on its own, what is problematic is when you remain a gambler wondering why it is hard to make a consistent living from Forex. 


In all honesty, Forex gamblers are the reason so many people have been running away from Forex, I was part of that reason until this year. But I have decided to change people’s opinion and Forex traders’ perspective to Forex. If you are still confused as to the difference between a gambler and a trader, or you honestly don’t believe there is a difference, then read on. Let me quickly state here, in case you miss it along the line –THE KEY TO PROFITING AS A PROFESSIONAL ONLINE TRADER IS TO TAKE LITTLE PROFITS OVER TIME. On that note, let me introduce you to making money in the world of Forex trading.



1. Owner/BDC operator/Net currency exchange operator: It goes without saying that whoever sets up a business where others can bring their money in order to exchange it or make money for themselves, will make money too- either from commissions/spreads, or Mark-up.

Let me quickly explain what “Mark-up” is. Mark up is the profit the banks make when you buy foreign currencies from them. It is essentially the difference between the international/CBN exchange rate and the rate you are charged when you physically buy one currency with another from a bank or Bureau De Change (BDC) operator. It is believed to be the cost of handling cash and operator fees of the BDC/bank.

For example if $1 = N185.6 in the international market but your bank offers it to you @ N190.2, the Mark-up is the difference between both prices divided by 100.

             Therefore, Mark-up = (190.2 – 185.6)/ 100
                                              = 4 .6/185.6 x 100
                                              = 2.48% (that is the percentage the bank will make on the exchange)

You can read up my other post on how to make money as a net currency exchanger.


2. Affiliate: An affiliate is a marketer who earns commission on (every customer) sales he ‘brings’-facilitates. In other words, you work as a business partner with the company as you are paid on commission basis. Instaforex will pay you $500 after you have brought 10 customers who register and fund their accounts through your affiliate link. Forex-metal pays me 10% of the first deposit of a client who registered with them using my affiliate link.

3. Trader (or gambler): There is generally a thin line between a trader and a gambler. Thin, not because you won’t know when you have crossed it, but because it is very easy to cross it. LEVERAGE is first and major difference between the two. While leverage works for a trader, it works against a gambler. If you have been following my blog, you will see that I have 3 different strategies for trading.

The three strategies are based on my goals for trading:


I. Accounts less than $10, I use the same strategy I used in turning $1 into over $250 in 5 weeks (read it here).

II. Accounts that I trade for my students to fulfill my guarantee of making back the training fees they paid me before the end of training. (Plan is to make 25% weekly, 100% in 1 month or max. 6 weeks.) You can contact me if you are in Nigeria and want me to train you.

III. Accounts of clients with the 3-year plan. (Plan is to turn $1000 into $1 million in 3 years by making 1% daily, 5% weekly, 20% monthly and compounding the money monthly.) You can contact me by email/sms if you want me to trade this plan for you  regardless of where you are in the world [Limited slots only]. Most of my clients of this plan are actually overseas.

If I want to know if a person is a gambler and not a trader, I simply ask what leverage he trades with. Anything above 1:50, and I know you are more of a gambler than a trader [PERIOD]. It doesn’t matter how you explain or rationalize it away.

The second is discipline.

There are 3 things I tell my students that they need to become Forex Trader Gurus:

a) Ability to read charts (technical analysis) and follow the news (fundamental analysis)

b) Patience, and

c) Discipline

And one is not more important than the other. Truth is no one is disciplined enough, or can say he has become disciplined and does not need to use/put ‘disciplinary’ measures in place. Without putting measures in place that will ensure you remain 100% disciplined, you can make 100000% in 6 years, and lose it all in 6 months. In fact, you can make $1 Million in 6 months, and lose it in 6 days. Forex can be that harsh on an undisciplined trader (mind you, even if you have withdrawn already, you will return it).

  
4. Trainer, Forex teacher or Forex trading signals provider: You know it used to amaze me when I saw a lot of ‘seasoned’ Nigerian Forex trainers (who haven’t made any money in Forex themselves) telling people to come and pay for training.

In fact that is the very reason I give my students a MONEY-BACK GUARANTEE – PUT THE EXACT AMOUNT YOU WILL PAY ME INTO A LIVE ACCOUNT IN YOUR NAME AND BEFORE THE END OF THE TRAINING, IF I HAVEN’T DOUBLED YOUR MONEY (i.e made back the training fees for you), I WILL REFUND YOUR FEES. In other words, THE TRAINING WILL BE ABSOLUTELY FREE!!!

If you follow the financial world closely, you must have heard that past success (of a mutual fund or a trader or a signal-providing-system or robot) is not a guarantee of future success. And while I encourage you to ask for the credentials of your trainer, I also insist that he gives you a money-back guarantee. Why should you teach someone to trade (or to be a trader) and not help him make money if you are really, really that good?

If you are also good enough, you can ask people to pay for a monthly subscription to daily signals from you on where you think the market will move for the major pairs. This one too will really stand you out as a Guru. I mentor my students continually (after the intensive training is over) by regularly letting them know what the overall trend is for the major pairs and how they should profit from it.

A Nairalander called me when I was still in Kano in October that I should help him oh. He said that he started a live account with $4000 around July but was now down to $180 (having lost $3820 in about 3 months). I tried mentoring him over the phone, even using my credit to call him, but he later didn’t call me anymore. If you are serious about Forex trading, seek a mentor and obey him/her.

I personally like and follow Jared Martinez of Market Traders Institute. Please download and read his free ebook if you haven't.

5. PAMM Trader/Investor: If you have not heard of PAMM before, it stands for Percent Allocation Management Module (or Percent Allocation Money Management). It involves putting your money into a PAMM trader’s account as a PAMM investor. You will be charged up to 35% of profits. I have discussed this extensively on my blog with pictures.

6. Forex Copy: With Forex copy, the exact trades of an expert (that you have selected prior) will be copied unto your account. It is similar to what a robot/signal too will do (explained below) if you install/subscribe to it. The only difference is that while this one is the exact trades of a human being, the other is the trades of a robot.

7. Programmer or user of Expert Advisors (EAs) or Robots/Signals: You can check my article (or this video link explaining it better) on how to install an EA or Forex robot otherwise called expert signals into your live Forex account in order for you to make money even while you are asleep. If you are a programmer, you can make money by having people pay a monthly subscription for use of your EA/signal through the MT4 platform, or the website MQL5. Very good signals charge about $30 monthly even though there are some that are free, and you will find some as expensive as $1500.


You can check this link if you want to learn how to program your own expert advisor.

8. Contests: You can find free Forex competitions at most established Forex brokers such as Instaforex and Alpari where you can win cash and cars. Instaforex has a whole lot of free competitions that will offer you the opportunity to win up to $50,000 in prize money. You can also check Forex Championship. I have published posts on my exploits at two different instaforex weekly sniper contests this month. Though I am yet to win any prize money.

Ok, that is probably 8 years of Forex poured out into 1 article. I hope I have been able to disabuse your mind from seeing Forex as purely gambling. Now, if you lose money as a Forex trader or investor, that is your fault because you have more enough information and resources to make money in online Forex trading. Don't forget to follow forums like Nairaland's investment section, Dailyfx's Forum, FPA Forum and Nigeria-forex Forum, blogs of experts including Fxstreet, Forex Peace Army's Andrew Mitchem and facebook Forex groups.

If you want to learn over 40 other ways of making money online, continue to follow my blog.

All the best.

sijinius.com



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