First, before you make trading your only source of income, you need to reach a stable income for at least a year. You should get convinced that you really like it and you are mentally able to cope with your emotions. Of course, by that time you should have a trading system which has been checked both in history and in real trading. You should clearly understand what you are doing and why. Don't set ambitious goals, but be guided by the fact that a decent income is 5-7 percents per month. Accordingly, you need to have at least $4,000-8,000 on your account.
There are several ways to create a passive income online with investments in the foreign exchange market:
1 Investing in experienced traders.
Necessary skills: basic knowledge of trading. It is enough to understand how the market works and to be aware of the risks.
PAMM investing requires a bilateral relationship between a trader who trades and earns money and an investor who invests money in the trader. The first one accumulates investors' funds in their account and usus them to trade on Forex. The second one invests money and receives a certain percentage of profit in case of successful activity of the trader. Usually, the profit is shared 50/50 or 70/30 in favor of the investor.
2 Long-term investments.
Necessary skills: basic knowledge of currency pricing. Basic skills of working with a broker's trading platform.
Long-term investing is an alternative source of passive income on the Internet. What does it mean? Let's take gold as an example. The image below shows a chart of the price of this noble metal for the period from 2018 to the present moment.
During this period of time, the price of gold rose from $1,223 to $1,762 per ounce. If you choose a longer period, you will see that, over the long term, the price of gold has been continuously rising except for short-term correction fluctuations. How do you make money on this?
It's very simple. Open an account with any Forex broker you can find herhttps://forex-up.com/broker-reviews/prestigeoption-review/ и and buy gold in the MetaTrader trading platform. In physical terms, you will not receive the metal, but you can earn on the change of its value over time.
3 Automated trading.
Necessary skills: It is necessary to understand the principles of Forex market functioning, to know the basics of technical and fundamental analysis, to have experience of independent trading in the currency market.
Automated trading consists in earning on the Internet with the help of robots; passive income is ensured by special software that trades instead of a person. The principle of opening transactions by the Expert Advisor is embedded in its algorithm.
It is often said that the automated trading is suitable for beginners, however, it is not quite true. In order to earn with robot trading, it is necessary to understand the logic of opening transactions, to know when automated trading becomes unsafe, to know when to stop the Expert Advisor, and when it is better not to enter the market (for example, during the release of important economic data).
You can always start trading here https://forex-up.com/broker-reviews/exness-review/exness-raw-spread-account-review/