Forex is considered to be the main financial market; it was opened in 1971. The main product at Forex is made up by currencies of various countries worldwide. Forex market is characterized by constant fluctuations, conditioned by the vast number of its participants. This results in numerous deals and fluctuation of quotations.
For has become very attractive to private persons due to the development of various connection technologies, for this gave people a unique opportunity to make deals with a help of a broker. Owing to it, any participant of Forex market can take a credit (provide a credit leverage), and correlation between credit resources and the sum of the account may reach 1 to 1000.
What do investments at Forex mean, and how to make money at Forex currency market? The “Market Leader” has asked these questions to the professional traders of the best Forex studying project in Europe in 2009-2013 Masterforex-V Academy.
Investments in Forex: Pros and Cons as Seen by Traders
The “Market Leader” has asked the leading traders of Masterforex-V Academy Igor Zotov (Tomsk, Russia) and Igor Rutskoi (Moscow, Russia) to comment on opportunities that Forex opens before traders.
- Market Leader: What do investments in Forex mean? Maybe bank deposits are more profitable and stable?
- Igor Zotov: By investing one’s capital in Forex, a person gets an opportunity to increase his starting capital not only in a quick but also safe way. For constant growth of a trader, one needs initial study and non-stop replenishment of one’s knowledge in the process of work. People who have worked at Forex for many years believe that major success in this work is brought by constant market analysis, as well as work with analytical data and working out a correct strategy. The latter depends on numerous factors that have direct impact on price of currencies.
Main factors at Forex market include movement of currency masses between states, economic condition of the world’s leading countries, analysis of trading sessions, as well as many political factors.
- Market Leader: So, how can one make money at Forex currency market, and is it possible at all?
- Igor Rutskoi (Head of Applied Wave Analysis Department at Masterforex-V Academy): History says that the world already has quite a number of examples, when people have earned millions, or even billions with the help of Forex, having thus changed their lives completely. However, one should not try his wings and hope for similar result, as it is hard to bring it into life.
First of all, one should have a considerable starting capital in order to get similar profit. Secondly, most players at Forex are satisfied with much smaller profit, which is accompanied by minimal risks, rather than deals with big sums, which one can easily lose. Owing to highest liquidity of currency trade, investments in Forex are highly attractive, for liquidity makes it possible to increase one’s capital quickly and considerably (from 30 to 50%).
At the same time, experienced traders claim that there is a possibility to get over 100% profit at Forex within one year without any great effort. Serious approach to trade is one, probably the main one, of constituents of successful work at Forex. In other words, the better preparation the future market participant has, the higher are his chances of getting high profit. Specialized courses on trading at Forex market is considered to be an ideal variant.
- Market Leader: Is there a limit of earning at Forex?
- Igor Zotov: Luckily, Forex has no limitations on the quantity of participants in trading. At the same time, Forex is always formed by large-scale corporations, such as investment funds and banks; whereas physical bodies or small companies are represented by intermediaries, namely dealing centers and brokers. In the process of its development Forex market has turned into a huge network, bound with communications. Work at Forex continues non-stop, with no breaks for meals or sleep, as well as no weekends. The process goes on twenty-four-hour. Such non-stop flow is provided due to time difference in different countries worldwide.
Thus, when European exchange closes, Asian opens, and then the American one. European session is considered to be the largest for its biggest volume. The most active markets are considered to be the ones in Germany, the USA, and London. The sum of daily turnover at Forex ranges between three to four billion US dollars. The main advantage at Forex is the opportunity to effect deals without having a positive balance; this feature is especially attractive to private bodies and small companies.
Also, owing to credit leverage market players can work with sums that are tens or hundreds times bigger than the sun on their deposit. And, consequently, the bigger the sum, the higher is the profit that one gets.
- Market Leader: Are there any examples of effective work at Forex, statements?
- Igor Zotov: Yes, and rather many. In order to make money, you are to:
1) Understand Forex market.
2) Have a trading strategy.
3) Follow the rules of the trading strategy.
Moreover, the main difference between a department study and a study in a DC or a broker is that the former presupposes a thorough study of a trading strategy during six months. This is not some kind of a 2-week or 2-day course, where you will only learn how to effect deals, leaving behind wise risk management. This is a full-scale studying course, which reveals the rules of a trading strategy, basics of deposit and risk management. While studying you will also learn to act clearly and consistently; you will “see” the points of opening and closing deals. You will also understand where and when a movement will start, in other words, referring to the principles of TS, you will be able to analyze a situation wisely and predict its further development.
- Market Leader: What is studying at your department “System of Early Prediction at MF TS on the basis of update by АО_Zotik and WPR_Vsmark” based on? What are its advantages in comparison to other studying resources in the Internet?
- Igor Zotov:The advantage of the department is the fact that TS uses authors indexes such as АО_Zotik, WPR_Vsmark, and a number of other indexes that have been tested and synthesized with changes in price charts, which makes it possible to distinguish a start of a strong movement before other traders; consequently, one can enter earlier, but not when the price has already moved a lot due to quick deals and orders made by large-scale market participants. Owing to the synthesis of authors indexes and price, there have been defined certain patterns, which make it possible to see the entire picture of what is happening much earlier. You couldn’t disagree that if we could be forewarned about upcoming events, at least 1 second before they actually happen, the world could have avoided many emergences.
- Market Leader: You are probably right. Can you describe the AO and WPR course “in a few words”? How is the studying held, and how such results are achieved?
- Igor Zotov: I am afraid, you cannot put it “in a few words”, just like one cannot briefly tell about studies of professional surgeons, professional welders, or top specialists of any other sphere. In order to learn to do something, one needs to spend much time and effort to overcome the verge between an “amateur” and a real professional. This concerns any profession. A profession of a trader is no exception. To conclude, I would like to say that no DC or broker has such thorough analysis of homework and presentation of new material, for studying there is designed for ability to effect deals in a trading terminal, after which you will either replenish your deposit again or sign up for another paid course in the same DC or broker.
Whereas at the SEP Department you will be getting all necessary information for successful trade during the entire studying process, and before starting trade on your real account you will learn the principles of price formation and use of TS system, as well as principles of capital and risk management. You will then have practice on special real accounts given by the department so that you can workout all the gained knowledge and learn how to apply them in real trade. Therefore, knowing and understanding are not the only things that matter, ability to apply the gained knowledge and skills in practice.
- Igor Rutskoi: By the way, if to assess international currency market forex from the point of view of its attraction to beginning traders and investors, its availability owing to development of technologies and Internet is its strong feature. Opening an account in one broker company or another by our students, who have received detailed consultation on the issue, takes several minutes; and then you can easily effect your first deals. However, many people fail to make realistic assessment of their chances to succeed in such responsible activity, so their trading results may be predicted easily. I can responsibly claim that you will not succeed without certain knowledge shared by market professionals.
I become convinced in this when every day my students make tens of pictures with wave marks and define points of entry online. As a result, they do not make guesses on where the market goes, but follow it and make confident profit. Start your way in the world of finance with high-quality studying. This will help to save your nerves, health, and money.
