Now ask any professional forex trader and forex is not gambling, but this does not mean that we cannot use forex as a form of gambling. Forex can be one of the very best forms of gambling, if you want to make some serious money from little money, but like all gambling, you have to accept that you can lose money. There are many things which sets forex trading apart from other forms of gambling one being leverage on your deposit. Basically this means if you deposit $100 and the forex broker has a leverage of 100 then you would have $10,000 to trade with, although you cannot lose the $10,000, once your original deposit of $100 is lost, there is no more $10,000. A forex broker leverages your money so that you are able to open a large trade with little money. Secondly what is different about forex trading is there are ways of playing the forex market to your advantage and below we will show you a very good method in how to win at forex.
Before we start this method, we are going to open a demo account at eToro Forex, and this is the great thing about it. Without risking any money, you can perfect the method we are going to teach you, by using a demo account which comes with a practice $10,000. We strongly advise you to learn this method and add your own twists onto it over a couple of weeks before actually using real money to trade.
To the left is an image of the tool we are going to use to help us win money in forex trading. The tool is very simple to use, yet very effective. What the tool does is give you a break down in percentage of where the top 1000 professional traders at eToro are placing their money, these are the kind of traders who are making big money every day.
The way which we usually use the tool is very simple. Firstly we pick a good trade from the traders insight tool. A lot of traders seem to be placing their money on the EUR/CHF, so we will open a trade on this.
Secondly we need to set some limits on the trade, the limits you set is entirely up to you and this is why it is worth playing around with the tool for a week or two before you use money. Personally this is how I set my trade up, as you can see in the image below. A risk level of 200, the risk level is the amount you leverage your deposit by. A stop loss of $30 and a take profit of $40. Of course as your trade is open, you can freely change these amounts if you wish and take your profit or cut your losses at any time you choose.
All this may seem a little confusing if you have never traded forex before, I know from the first time I opened a forex trading platform how confusing it can seem, but trust me after a few plays around on a demo account, you will soon get the hang of it and hopefully be making some good money.