There are two ways to raise money for debt repayment. You can either find new sources of income or reduce your expenses to save enough for dealing with instalments every month. The latter is usually seen as the simpler way to go, especially since you can always cut back on unnecessary expenses and return to the essentials.
Adding new sources of income, however, is not as difficult as you think. There are a lot of investment opportunities with the ability to generate income for your household. The forex market – and forex trading as an activity – is one of the best opportunities to explore.
Before you sign up for a trading account, it is important to note that the forex market, and the financial markets in general, shouldn’t be taken lightly. To maximise your return on investment and get out of debt with forex trading, these are the tips and tricks you need to know.
Getting to Know the Forex Market
Rather than signing up for an account right away, spend some time learning about the forex market before you get started. Just because you are approaching the market as a way to get out of debt, doesn’t mean you can cut corners and expect to get a lot of money quickly. Forex trading still requires good planning and careful analysis.
On the upside, you have plenty of resources and websites to help you get into forex trading in no time. InvestinGoal has a vast array articles, tools, and even exclusive bonus offers you can use. Visit the site and you can learn more about ZuluTrade, along with the reasons why this broker is one of the best on the market.
If you take a look at their guide, you’ll be able to learn about the trading platforms, how ZuluTrade handles slippage for copy trading accounts, and the broker’s refund policy. The latter actually tells you that this broker is reliable; ZuluTrade is one of very few brokers that actually have a clear refund policy.
Preparing for the Experience
So, is it time to start trading? Not really. At this point, what you want to do instead is open up a demo account. The demo account is exactly the same as a live account, with the only difference being they use virtual funds rather than real funds to trade forex pairs.
There is a lot you can do with a demo account. Open a demo account to get to know the trading platform and the different instruments available. Once you are more familiar with the forex market, use the demo account to test strategies and practice quick decision-making.
It is even possible to prepare for the trading experience by joining virtual trade competitions. Make great investment decisions, end the competition with the highest amount of virtual funds, and you too can win real cash prizes. The winnings can be used to fund your live account.
Since you are already dealing with debt issues, chances are you cannot afford to invest a lot of money into the forex market. You shouldn’t. Regardless of the financial instrument, it is always best to invest the amount of money you can afford to lose, especially when you are just getting started.
Starting small is the way to go here. Brokers accept smaller initial deposits nowadays, so you still have plenty of options when it comes to the broker you want to work with. At the same time, there are also deposit-match bonuses and other special offers, which are useful for boosting the initial bankroll too.
The same principle applies to the trades you make. Opening a $10k position – a mini-lot – with a small margin is very tempting; I know because I’ve been there. That mini-lot, however, needs to be supported by a large leverage when your investment is limited. That’s a big risk to take.
Manage Your Risks
Speaking of risks, you have to keep in mind that there are risks associated with forex trading. Using too high of a leverage, as mentioned earlier, is among the biggest risks to mitigate. With a £100 account, you should not be trading mini-lots.
Another thing you need to do is set a Stop Loss (SL) for every trade position you open. Setting a Stop Loss is not only good for your margin, but also good for yourself. You know there is a Stop Loss implemented and you don’t have to monitor the trading console all the time.
Knowing what to do when the market moves against you is also a must. There are strategies to implement in these situations. Alternatively, you can stick with low-risk strategies like scalping and focus more on raising the money to repay your debts.
Forex is a great source of additional income, but even the best source isn’t enough if you don’t pair it with good budgeting. As you start earning money from the trades you make, work towards repaying your debts immediately.
Make a monthly budget and stick to it. Review your expenses and take steps to cut unnecessary ones too. If the goal is getting out of debt with the help of forex trading, approaching the investment opportunity using the tips and tricks we discussed in this article is the perfect way to get started. It will not be long before you start chipping away at your debts and regaining control over your personal finance.