How to make Money

It's actually pretty simple: investing means putting your money to work for you. Essentially, it's a different way to think about how to make money. Growing up, most of us were taught that you can earn an income only by getting a job and working. And that's exactly what most of us do. There's one big problem with this: if you want more money, you have to work more hours. However, there is a limit to how many hours a day we can work, not to mention the fact that having a bunch of money is no fun if we don't have the leisure time to enjoy it

You can't create a duplicate of yourself to increase your working time, so instead, you need to send an extension of yourself - your money - to work. That way, while you are putting in hours for your employer, or even mowing your lawn, sleeping, reading the paper or socializing with friends, you can also be earning money elsewhere. Quite simply, making your money work for you maximizes your earning potential whether or not you receive a raise, decide to work overtime or look for a higher-paying job.

Learn what are different types of accounts in online forex trading

DEMO Account - Yes..One of the most important accounts in Forex trading..Use this account to learn and master the art of online forex trading. The brokers create this account for free for you with virtual money. So, use this account to place trades, try different trading strategies without any fear of losing real money.

Mini Account - An account that can be started with as little as $300 in your online forex account. With this account, you'll earn about $1 for every pip movement in your trade direction. On the other hand, you can loose $1 for every single pip movement against your trade.

Major account - Starts with about $2500 in your online forex trading account. Here you earn about $10 for every single pip movement in your trade direction and loose $10 if pip movement is not in your trade direction.

Note: read this and learn this - Start with Demo online forex trading account and practice using it. If you cannot make money in your demo account, you cannot make money in your real account. After, you have CONSISTENTLY made money in demo account, then start mini account and after earning there consistently, start major account.

The currency pairs involve these currencies:

EUR (Euro)
USD (US Dollar)
GBP (Great British Pound)
CHF (Swiss Franc)
JPY (Japanese Yen)
AUD (Australian Dollar)
NZD ( Newzealand Dollar)
So, currency pairs are EUR/USD, GBP/USD, EUR/NZD etc.

However I trade only those currency pairs that involve USD.

The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is by far the largest market in the world, in terms of cash value traded, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. The trade happening in the forex markets across the globe currently exceeds US$1.9 trillion/day (on average). Retail traders (individuals) are currently a very small part of this market and may only participate indirectly through brokers or banks and may be targets of forex scams.

The investor is the person who runs the show; he is the heart of the Forex market. No investor, no Forex market. The investor knows that in the currency market he/she can buy a pair of currencies and sell them at a short notice. The entire transaction takes place within minutes and the trading is normally carried on by a professional trading manager or a trading company. It sounds quite easy but the reality is much different. You may have a pair of currencies but if there is no buyer at the other end then who will you sell it to? So there is the need of a buyer who can buy your currencies and maybe sell them again to another buyer. A vicious circle isn’t it?

It is not necessary that you as an investor might be able to find a buyer all the time. Although, the market works 24 hours a day but sometimes finding a buyer can be tough. You will be very lucky if you find a buyer who is ready to buy the currencies at the same rate that you bought them for. The probability of finding a person who may be interested in buying and selling the same currencies for the same amount, at the same time is almost negligible. This leads to a question. How can you as a Forex investor buy and sell at the same time or anytime? This is where the Forex market traders come in.

The Forex market maker can be a brokerage company or a trading association. The market maker can be an individual or a financial organization. They can be a bank with adedicated trading account managers. These individuals or companies are always ready for any outcome. Their job is to speculate and make trading possible so that you can reap the benefits. They negotiate the price for various currencies and sell it to a buyer from whom they can earn profits. The market maker is the lifeline for an investor because he can buy the currencies from you whenever you want to sell them. After buying, the market maker will go ahead and sell a pair of currencies to another buyer. This is good news for you because you don’t have to take the pain of finding a good buyer. Again, as an investor, you can always buy a pair of currencies from the market maker.

In other words, the market maker works both ways and helps in creating the Forex market even if there are less number of buyers and sellers. The Forex market makers keep the market in circulation or flowing all the time. They always update their prices every thirty seconds so that any buyer or seller can be well informed. Even if the market turns volatile, the market makers in Forex will continue with their job of buying and selling the currency. At times, they can even incur losses but that has no consequence on them and the process continues. Some of the famous Forex market makers are Forex Capital Markets (FXCM), Saxo Bank, and Gain Capital etc.