Making Money with Forex Trading for Beginners Step by Step11 min read

Making Money with Forex Trading for Beginners Step by Step11 min read

The foreign exchange or forex trading market is the largest and most liquid financial market in the world. With daily trades amounting to over $6 trillion, it offers traders ample opportunity to profit from movements in currency exchange rates. 

However, making consistent money as a beginner in such a volatile market can seem quite challenging. This article provides a step-by-step guide on how beginners can approach forex trading intelligently and make a regular income through systematic strategy and risk management.

Advice for Investors Who Want to Enter the Forex Trading Market

The first step for any beginner is to understand the basics of how the forex market works. Currencies are traded in pairs – for example EUR/USD shows the exchange rate between the euro and US dollar. Your goal as a trader is to buy a currency when its price is low and sell it when the price rises. 

To establish a solid base, spend time researching free forex educational resources online and consider taking a beginner trading course.

Before risking real money, it’s crucial to open a demo trading account. Demo trading allows you to practice with virtual funds so you can test your forex trading strategies, get familiar with platforms and order types, and experience realistic market conditions without the pressure of risking your capital. 

The Kingdom Bank offers a best-in-class demo account that replicates real-time market data and order execution – this is the ideal place for beginners to sharpen their skills. 

Paper trade for several months until you feel confident in your abilities.

How Do Beginners Make Money from the Forex Trading Market?

One of the best ways for beginners to make consistent profits is by focusing on forex trading strategies that require minimal time commitment yet provide an edge. 

Trend following is one such approach – it involves identifying currency pairs that are in a clearly established uptrend or downtrend on higher time frames and entering long or short positions in sync with the prevailing direction.

Another effective strategy is range trading. Certain currency pairs like EUR/USD tend to oscillate within well-defined high and low boundaries. 

Range traders watch for prices approaching the upper or lower bounds of the range and enter trades aiming to profit from a reversion back towards the mean. Proper forex market analysis and understanding support and resistance levels is key to succeeding with this strategy.

In terms of order types, limited risk trades like limit orders are preferable for newbies over potentially riskier open-ended positions. Stop losses must always be used to cut losses quickly if the market moves against your trade. 

It’s also important for beginners to start small with position sizes of no more than 1% of their account per trade until they have proven a strategy with multiple wins over many trades. 

Risk management is as vital as having an edge if making money consistently is the goal.

What Needs to Be Done to Make Money from the Forex Trading Market?

Along with using proven strategies, traders also require the right tools to monitor the markets and execute their plans. 

An advanced forex trading platform like the MT5 platform from The Kingdom Bank provides all the elements needed for success.

Traders get over 50 technical indicators and drawing tools to analyze the markets from every angle. Build your own trading systems using the platform’s graphical programming language MQL5. Backtest strategies on historical data to validate their efficacy.

Go live confidently with deep liquidity across all major and exotic pairs. Place pending orders like stops and limits with guaranteed execution at the requested price. 

Manage your entire portfolio from a single screen. The Kingdom Bank offers commission-free STP/ECN raw spreads from 0 pips across all account types.

For protection of capital, The Kingdom Bank’s platform incorporates automatic stop outs and margin calls should equity fall below minimum levels. This helps eliminate the chances of account blowups that are common destroyers of newbie trading accounts. 

Advanced traders also gain access to trading plugins, VPS hosting, and other powerful tools to scale their strategies for bigger profits over time.

How to Earn Regular Income with the Forex Market?

While making a killing from a single multibagger trade is every trader’s dream, generating a consistent monthly income stream is a far more achievable and realistic goal for beginners. 

Unlike stocks where profits rely on one market direction, forex offers traders daily opportunities to go long and short across hundreds of currency pairs.

By deploying multiple small position sizes according to predefined risk parameters, you can construct a portfolio of active trades diversified enough to produce regular, steady gains over time. Stick with strategies proven to have a positive expected value through solid backtesting on your chosen platform. 

Position sizing is key – never risk more than 1-2% of equity on any individual trade regardless of perceived potential returns.

Monitor trades constantly and exit promptly using hard stops if pre-defined profit or loss thresholds are breached. Let winners run for optimal gains while keeping initial risks small. 

With diligent money management and patience, a beginner trader can expect to realize a 1-2% portfolio gain each month – translating to 12-24% annual returns which is significantly higher than most other investments. Those returns can be used to create a dependable passive income stream.

The Most Suitable Digital Bank for Forex Trading Market Monitoring

The Kingdom Bank stands out as the perfect choice for beginning forex traders looking to earn a regular supplemental income. As a fully licensed and regulated digital bank, The Kingdom Bank provides a safe, secure environment to grow capital over the long run.

Traders get ultimate flexibility and power with the bank’s globally acclaimed MT5 platform. Real-time market access, low spreads and deep liquidity across major and exotic pairs enable exciting trading strategies on all time frames. 

Advanced charting, indicators and automated trading formulas supercharge forex market analysis.

Above all, The Kingdom Bank’s rigorous focus on risk management empowers even novice traders to control downside exposure and preserve capital. Capital is not depleted by commissions or expensive mainstream brokerage fees and charges.

Start your forex trading journey the right way by opening a live or demo account today at The Kingdom Bank. Paper trade extensively before going live. Then initiate small but consistent gains over many patient months of proven trading. 

You too can achieve financial success from even the world’s most challenging markets. Have faith in proven processes, protect capital, and let compounding work its magic over time.