Instead of "how to make money with forex," I could have entitled this article, "the best way to make money with forex" and just cut straight to the chase. However, I didn't do so for a couple of reasons:
1. It is sometimes just as important to know what does NOT work as knowing what DOES works.
2. Sometimes the "best" method depends on who you are, what skill level you are at, and what your long-term goals are.
I'm going to discuss 3 very generalized methods of making money with forex but I'm not going to go into every detail I could about any of them. This type of detailed discussion would require a book and this is just an overview article - but really all you'll need to get started if you take my advice.
Here is a summary of the 3 methods I'm going to discuss:
1. Buy books, courses, etc and try to learn forex well enough to trade solo right from the get go.
2. Use some type of automated software that will generate signals that you can trade (some you can actually set to auto-trade for you based on your preferences).
3. Receive forex signals from experienced highly successful traders who are still actively trading.
Now, I'm going to tell you upfront that the third way is by far the best way for the vast majority of people (but maybe not everyone). I like this method primarily because it almost guarantees that you'll make money right away and for the fact that you can learn while you earn.
Now, let me back up for a minute. There are many "good" forex courses online. However, I put "good" in quotes because no matter how good a resource is at explaining how forex works or even at explaining a particular trading system/philosophy that has worked for someone else, it is NEVER a good substitute for actual trading. Also, many people who chose to go this route get stuck in the "learning phase" for what seems like forever.
Automated software is my least favorite of the 3 strategies because I can't think of anyone where one of the other two others methods wouldn't be better. However, this is what's being marketed most heavily these days. These automated systems seem to promise you the world and many people who market them seem to suggest that you can simply buy this software, put it on auto-trade, and rake in tons of profit. I've been around the investment world for a while and I have NEVER known ANYONE who actually made a good profit using automated forex software. I've known a few people who made marginal profit with it and that's about as good as it gets. The main problem with automated software is it doesn't work well when the forex market fluctuates, especially when it fluctuates a lot in reaction to certain news events.
Okay, let's go back to the forex signals being sent by real human beings - experienced professional forex traders. I want you to take special note of a few important things to consider when selecting a signal service because some are really great and will make you a lot of money and teach you a lot about the market and others won't make you as much and they certainly won't teach as much. In fact, some signal services don't bother to try to teach you anything and I think that's a big mistake.
When selecting a forex signal service, make absolutely sure that you are receiving the signals in as close to real time as possible. This of course means the trader has to be prompt about sending them out but it also means the technology has to be good enough to deliver them at lightening speed. Make sure there are really sharp technical people associated with the service you get. These guys generally work behind the scenes but they are critical to everything - and they are critical to you making money with the signals you are being sent. You can be sent the best signals in the world but you don't get them in time, they aren't going to make you money!
The signals coming from real traders are of course only as good as the real traders who send them so make sure that these traders are the real deal and have a proven track record that you can actually research. Also, make absolutely sure that they are ACTIVELY TRADING ALL THE TIME because the market changes so much that if they don't they will quickly lose their feel for it and the quality of their signals will decline.
The very best forex signal services will offer lots of ways to learn. They'll give live webinars, they'll record those webinars, they'll offer forums, they give out frequently asked questions, e-courses, etc.... What you want to look for is how often do they UPDATE these learning resources. Do they explain their reasoning on a daily, weekly, monthly, or longer time frame? It is best to have at least weekly updates so you can learn WHY the trades that are being made are being made. If you wait too long, it won't be fresh in your mind and you won't learn as much.
Finally, you do want the auto-trade feature because this way you can make money even when you're not around - you could be at work, you could be on vacation, or you could just be out playing on a beautiful sunny day like we're having here today (yes, I can't wait to get off the computer and get out there)! It also means that if you get interrupted by an emergency, children, or whatever, you can "flip the proverbial switch" and continue making money.
Here's a forex signal service that has every great feature I mention above and then some. Furthermore, you actually get real-time forex signals sent to you from not just one but TWO experienced traders. These guys have among the best reputations in the business and are known for making a good profit very consistently. They do offer webinars, forums, auto-trade, and have one of the coolest member's area around! The website has a lot of good information so you can check it out for yourself but I really highly recommend it.
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