How to Make Money Trading Forex

How to Make Money Trading Forex

Last updated on January 28th, 2023 at 01:34 pm

To make money trading forex, there are basic steps you must pass through. In this video, we have prepared detailed information that is easy to understand and implement.

Watch the Video Version of How to Make Money Trading Forex in Kenya | Opwell Forex TV YouTube Channel

Make Money Trading Forex in 6 Steps

Here are the basic steps to take to make money in forex trading:

1. Open a Live Forex Trading Account

Open a Live Trading Account

Select a broker to open a live trading account and follow their account openingprocedure. The process can take as little as five minutes to complete. Once you have a trading account, download your preferred trading platform from the broker’s dashboard andconnectthe live account you have just opened. You can choose either Metatrader 4(MT4) or Metatrader 5(MT5). If you already have a verified account, skip to step 2.

2. Deposit Trading Capital

Deposit Trading Capital

Once your account has been verified, you are now able to transact on the account. Log in to your new account and deposit trading capital. In Kenya, it is easy to deposit money on forex brokers’ platforms because many of them accept Mpesa money transfer, which is the country’s most convenient means of payment.

3. Analyze Forex Chart

Analyze Forex Chart

You can use different methods to analyze a Forex chart based on the type of trader you are. Such methods include the use of economic news events and technical charting tools. This is where you need chart analysis skills, so you don’t feel overwhelmed.

Most traders do not use their brokers’ charting tools. Instead, they opt for premium trading platforms with more advanced features such asTradingview

4. Place Trades

Place Trades

Once you have conducted your analysis and you can determine whether to buy or sell a currency pair, open the mt4 or mt5 you connected your account to on your mobile device or PC. ClickNew Orderat the top left corner of the trading platform if you use a PC. If you are using a mobile device, go to quotes, click on the currency pair you analyzed, and then selectTrade.

Enterlot sizein the volume field according to your account size,Stop LossandTake Profit, then click Buy or Sell, depending on the results of your analysis.

5. Monitor Running Trade

Managing running trades is one of the best ways to help you limit the number of losses your trading account can incur in Forex. This process is not required, but it is necessary.

You can manage running trades by moving Stop Loss to Entry Point when a trade is halfway in profits, closing the trade early if an economic event has messed up your setup, locking partial profits, or setting a trailing stop.

6. Exit Trades

You can exit trades in Forex if your chart setup is invalidated or you no longer want to wait for more profits or losses. You can exit a running trade automatically by setting a Stop Loss and Take Profit or manually closing the trade.

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Spend time developing an efficient exit strategy because this process is essential.

FAQs on How to Make Money Trading Forex

What Is Base and Quote Currency?

The first currency in a currency pair is the base currency, while the second is the quote currency. For instance, in the EURUSD currency pair, EUR is the base currency while USD is the quote currency. If you buy this currency pair, you expect the base currency(EUR) to grow stronger in value compared to the quote currency(USD) value. If you sell the currency pair, the reverse is true.


If the market exchange rate of the EURUSD pair is 2.3600, and you purchase 1000 EUR, you believe that EUR will rise in value against the USD. If you exchange 1000 EUR to USD at an exchange rate of 2.500, you make a clean $140 profit.

If you are lost in the calculation, multiply the 2.500 exchange rate by EUR 1000 = 2500. Again multiply the 2.3600 exchange rate by EUR 1000 = 2360. Subtract 2360 from 2500. The value you get is your profit.

In case you hate maths, don’t panic because you don’t need to calculate all these figures. Trading Software takes care of all the calculations. Your task is to fund your account, be on the chart at the right time, analyze the market, and place trades based on your belief.

How Do You Know When to Buy or Sell a Currency Pair?

When your trading system tells you it is time. Simple! Later, you will learn how to develop a robust trading system from scratch.


I believe that now you know how to make money trading Forex. In the next article, we will learn the terms used in forex trading. If you have any questions or compliments, I will be waiting for you in the comment box below.


  • Editorial Staff

    Editorial Staff at OpWell Forex is a team of Forex experts led by Brian Bill Opiyo. We have been creating forex trading tutorials and other forex related articles since Feb 2021, and OpWell Forex has become the largest free Forex Trading resource site in the industry.

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