If you are reading this article your are either about to venture into FX trade and seeking for ways of making profit or you have been trading Forex for a while and you are yet to experience the reality of profit in Forex; you may even be wondering if anyone ever made money in the Forex market. Well I’ve got good news for you, the Forex market is actually what you thought initially; it very profitable; however trading the market is not the only way to profit in the market. This article thus focuses on the multiple streams of income available from the FX market.
1. Trade FX manually yourself: the first and the most obvious way to make money from FX is to trade yourself; this however is the hardest way of making a guaranteed profit; it may take you a bit of time to discover a strategy that will work well for you in generating consistent profit. It’s not impossible but it may take you a bit of time, learning and hard work.
To be a successful trader you must have a trading system that generate consistent net profit all the time; this will thus take a lot of testing of trading systems on different trading platforms to the arrive at consistently profitable trading system to generate income for you. A successful trading system can either be developed or be purchased, whichever way, it needs to be tested over a period of time in order to be certified as a profitable system.
Pros: These are the real traders, you feel good to trade and system and make profit from it; your destiny is in your hands and not in the hands of some system that you are not sure of.
Cons: It takes time and a lot of learning to arrive at a profitable system; it can also take a lot of your time entering, monitoring and exiting a trade, there are no guarantees of profit; the truth is there are more losers than winners; in fact the winners need to feed on the losers.
2. Trade with Forex Robots: Robots are automated trading systems usually used on a few no of platforms such and met trader. These are trading systems that can be programmed into a coded program usually called a trading robot and all you need to do is to attach the robot to a chart with the specified parameters; this is more like a plug and play money machine if you are using the right robot; more often than not these robots needs to be operated on virtual private server (VPS) systems so as to ensure the robots are up 24 hours to enter or exit any market opportunity.
Pros: If you get the right robot, with it right setting, it’s more a less money machine for you, just plug the robot and it begins to play cash for you; Another good thing is that a robot will not consume your time, it just makes money for you while you sleep.
Cons: there more crap robots in the market than good ones in fact many of them are losers and thrive on just sales of the crap robots; you need to do an extensive research and testing to arrive at the right robot; good Forex robots could also be expensive; some of them are very sensitive to settings and without the right settings even a good robot could be losing you money; some are also dangerous because they have potentials of blowing up your account; i.e. they have a high risk of ruin.
3. Invest in Managed Forex account/PAMM Account: If you don’t want to go through the stress of discovering a successful trading system or robot, you could just invest your money with an already seasoned trader managing a Forex investment fund. The easiest one to join is usually PAMM accounts; PAMM means percent allotment management module; you invest your money with a trader called a PAMM trader, he trades for you and takes a percent of the profit he makes for you. So the success factor here is discovering a profitable PAMM account to join. Several brokers such as Alpari & InstaForex operate PAMM system where you can easily invest your money with profitable PAMM traders.
Pros: If you get a good PAMM trader fund manager, it’s almost a sure way for you to make profit without stress in the Forex market
Cons: you need to have sufficient funds for many good PAMM managers, many of them especially the good ones have high entry investment amount; another issue is that sometimes a long-term profitable PAMM trader could become a looser over night so you stand a risk of losing some or all of you investment;
4. Be a FX PAMM Trader: just as mentioned above 1 or 2 mentioned above are a perquisite to this method; a PAMM trader or a Forex fund manager trades other people’s money and take a share of their profit as pre-agreed; a PAMM trader will either use his a manual or automatic trading system in mentioned in 1 & 2 above; whichever it is, It must generate consistent profit for its investors.
Pros: there is a high leverage advantage here because the trader makes money from other people’s money; some brokers actually don’t require a minimum amount for the PAMM trader before he can accept other people’s funds which implies a PAMM trader can make so much money with little or none of his own money.
Cons: Some brokers require a high PAMM traders own money before he can operate a PAMM account; you can lose other people’s money and loose reputation in the process, bad reputation is detriment to long-term investor loyalty.
5. Be an FX PAMM Partner: This is an affiliate system for a PAMM account used for FX trading; you don’t need to invest or trade any money for investors, all you need to do is to refer investors into a PAMM traders’ account and the PAMM trader gives you a share of his own profit made from a trading commission.
Pros: This also has high leverage potentials; if you refer a high volume investor, your commissions may be really high with zero investment from you; this is a near zero risk process in trading, i.e. you only get a share of the profit and someone else bears all the losses if any. A huge active traders’ referral list is a long-term source of good residual income. This is one of the safest ways to partake in the Forex profits.
Cons: you will need to market the PAMM account in order to get any referrals. This may cost you money and also time because internet marketing has its own time and cost.
6. Be an FX Broker Partner: Broker makes their profit largely from the spreads of an FX trade and or commissions in each trade; the broker makes money irrespective of the direction of the market; Some brokers run partnership programs and will give you a share of this commission or spread in any trade executed by any client you refer to them.
Pros: This is also a zero risk profiting from the Forex market; you get a share of the commission or spread whether there is winning or losing trade; if your refer high volume regular traders, you will have a long-term source of residual income from the volume of trades executed.
Cons: You need to market the broker properly in order to get a high number of referrals active traders; Internet marketing takes time and money.
7. Forex niche affiliate: The 7th way you can make money from the FX market is to sell Forex products to stakeholders in the Forex market such as brokers, FX traders, investors, partners etc. Get a good converting product for the market and you can be making good money; examples of products your can sell or market are books, tapes, trainings, traffic, trading systems, Forex robots etc.
You can either create your own products and market it yourself or get others to market it for you, or if you don’t have a product just look for a good converting product from other people to market for them and earn affiliate commissions. Whichever way, you are excluded from the risk of losing in a bad Forex trade.
Pros: No risk of losing money from a bad trade in the Forex market; with a high converting product and large list you can profit a lot from selling in the Forex niche
Cons: Success in this method absolutely depends on your internet marketing prowess; the Forex niche is a hot niche and completion is high thus making marketing a bit expensive; another problem is that internet marketing will cost you time and/or money there also exist the risk of low return on marketing investment.