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Making money from Forex

Discussion in 'Making Money' started by ifuel, Mar 24, 2009.

  1. ifuel

    ifuel Newbie

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    Since I have been reading in here for a while, I thought it was about time to give something back. Just finished writing this stuff an hour ago, and tried to sell it at DP for at stupid price of $5, but it seems like no one wants to buy it :) So why no share it here. It did go a bit fast, when I was writing, so there might be a few erroers. Here goes:

    Making money from the forex industry

    The forex industry is getting more and more popular every day. A quick look at Google trends will show you what I am talking about. In spite of what many people might tell you, being a profitable forex trader is not as easy as you might assume. It takes practice, and a lot of it, to become a good trader. However, people often fail due to a few essential factors, which I will explain later.

    Since the main focus of this post, isn't about making money from trading forex, there will not be any detailed explanation on the forex market and how to trade it. However, I will tell you about a few important rules, which (if followed) will put you in a better risk/reward position than most traders out there. However, these rules are well known, so it is more about FOLLOWING them then, than actually knowing them. Anyway, as mentioned above, trading the forex market is not the main focus of this post. So what is it about?

    Making money selling Forex signals
    There you have it. Hang on a minute. How can you make money from selling forex signals, when you don't even know how to trade the forex market? Very simple. There are a few different ways to do this and I am going to go over them step by step. But before we get there, I will go into another aspect of this, which is, setting up a membership site, and sending the signals. But let's first take a look at forex signals, and why they are so popular.

    As mentioned above, forex trading is becoming more and more popular. People are obsessed with the thought of getting rich quick, and due to the possibility of using high leverage in forex trading, many people think that this is the possibility to make some easy $$. So people get an account at some forex broker, deposit money into their account, loose it all, and realize that they have no idea what they are doing. They start searching the internet, and very often, the choice will be to sign up with a signal provider, in the hope of being able to make a lot of money in a short time. Just in case you don't know, a signal provider is a service where an individual, organization, etc. will tell you when to buy or sell a specific pair in the forex market, usually for a monthly fee. However, these services vary greatly. Some of them are simply services of sending an email with a buy signal and no stop loss, take profit, etc. Other providers will give you access to a chartroom where you can actually have a discussion with the provider. There are many different types. They usually have a pretty high membership fee, due to the popularity. Typically the prices range from $50 - $350 per month. However, I have seen both higher and lower. Often these signal providers will offer a trial period of two weeks, one month, etc. either for free or for a small fee. By taking advantage of these trial periods, is one way we are going to make money. But more about that later.

    So you are going to sell forex signal. But there is already a bunch of providers in the field. So how can you be sure to grab the potential customers? Well, you can either be better or cheaper. Two possibilities which you can easily exploit. I will get back to that.

    So the basic plan here is to sign up for a trial period at a signal provider, and then sell the signals at a cheaper rate, or by offering better signal to your customers. Let's take it step by step. Before we look into the different methods, let me talk a bit about the homepage you need, where people can sign up.

    Setting up your Forex signal providing homepage
    Well, actually, if you have no time, and no idea of how to make a homepage, blog or similar, you don't have to. I have seen I don't how many people offering this kind of service, simply through a Google or yahoo group. Setting up such a page is free and should take you no more than a few minutes. However, I do recommend you to get a real website, as this will seem more trustworthy. The website can be a blogger or wordpress blog. You just need some simply site where people can read about the service, sign up, and see the results. The simplest way to go about this is to set up a free wordpress or blogger blog, and write about your service. Name one page "signup" and put in your email address, and tell people to contact you for signing up. When they write you, you should have an auto responder, with a standard mail, telling them transfer $xxx to your PayPal adress.

    Another and probably a more preferable option, is to get your own domain, and use some free good looking template. Change the layout to make it look nice and business related. Use wordpress and set the page up with a PayPal button, so people can buy direct from the website. This is very easy and should not take more than an hour or two. Buy the domain from Go Daddy, and make it anonymous, so people can't look you up on whois. You can simply use excel as a method for keeping track of your customers, or you can go with a professional version like aweber. However, this will cost you a monthly fee of some $100. So you might want to start with the free option, which should work just fine.

    How do you send the signals?
    The best way to do this is probably through instant messaging, but if you don't feel comfortable doing it this way, simply use a free email, like Gmail to send out the signals. This should be straight forward.
    Alright. Now let's get into getting the signal to use.

    There are a lot of signal providers out there, but that does not mean there is no room for you. The market for this kind of services is huge! A great place to find good signal providers is at forexpeacearmy. Go to review and then to forex signals. Click on the stars in order to rank them according to how popular they are. 5 starts are the best. Now the providers you are looking for is those how are sending out their signal on email, sms and instant messaging. Although you can go with chartrooms, I find the other option to work better. Look for 4 and 5 star signal providers, and read the review. Usually you will get an idea of how the signals are provided. If not, then go to the signal provider's homepage, and you should be able to get the information you need.

    Next off, when you have your list of possible signal providers, you can minimize those to those how offer a free trial or a very cheap one. I have yet to see one who does not accept PayPal, which is perfect for us since this enables us to use the free trial over and over again. More about this later.
    Now when you found the provider you feel good about, go ahead and sign up for the trial. Whenever you get a signal from the provider, you simply change the email a bit, maybe changing the entry price, stop loss or take profit by a small number, just to make it a bit different from the provider. When this is done you send the email to all your customers.

    Now what about the trial. Often they only last for 14 days or one month. Well obviously, you just sign up one more time. As these providers often looks at your IP, be sure to use a proxy when signing up the next time. Simply put in some fake data when you are signing up, and use a different PayPal address. You can add up to 8 different email addresses to your PayPal address, so this should be enough to keep you going for some time. When you have used all of them, go get yourself a prepaid credit card and start over.

    How to price your service
    Since a lot of the providers are expensive, you can take advantage of this and offer a cheaper rate. Remember that your only cost is for the trial (if this is not free), and possibly for a domain. So you could set your monthly subscription at $50. Offering the same (or almost) results as a provider which is charging $200, you can be sure you can get a lot of customers for $50. Another thing to do is to set the price higher, and offer more signals, simply by signing up for more signal providers at a time. Now I know there are a lot of scammers out there, but there are also some good ones among. Using forexpeacearmy should get you on the right track.
    You can make people more interested by writing about "past performance" on your website. If people see that you have been able to get good results in the past, they will be more tempted to sign up. People just need to get the idea that they can get rich in the shortest time possible. At the same time you don't want to promise too much, as your actual results probably won't reflect that, and people will drop your service.

    How to get members
    The fastest way is to go to forex peace army, and add your page. This should only take a few minutes. There are other sites like forex peace army out there, but this is definitely one of most popular. Another great one is FX review forum. This place is also pretty active. Recently a section like this was also added to babypips. One way to boost your ranking is, when members sign up, simply write them an email, telling them you will give them one free week if they leave a positive review on one of these pages. Furthermore, you can go in and write your own reviews using proxies. Give yourself a 5 stars, and positive review.

    This is an extremely easy process which should not take you more than a few hours to set up.

    Another way to go about this is, go to many different signal provider homepages, and sign up for free news. A lot of sites offer this as a way to attract customers into buying their final product. Then they will usually send you, maybe not a direct signal, but something like "if market breaks support at 128.01 go short". Since the people offering these free daily email, want you to buy their product, they try their best to give correct directions. Sign up for a bunch of these, and use this as your product.

    Another aspect of this subject is, that it is okay to be wrong. I have seen a lot of providers have negative results in several weeks, yet charging $200 per month and still having a bunch of customers. So in one way, you can simply send signals without knowing much about forex trading. Either you will be right or you will be wrong. If you follow the daily trend of the chart, and don't send signals close to news, you should be alright. You will definitely not be right every time, but hey, no one requires you to.

    Another way is to send out signal some hours prior to big news like rate announcements, and telling your customers to close the position before the news hit. The signal should be in "the directions the news SHOLD affect the market". That is, good news for US and your signal should be "long" on some usd/xxx pair. Often the market will move in the direction it should prior to news (buy the rumor, sell the news). You can see the daily news on forexfactory.

    The last part is, that when you do sign up for a signal providers trial offer, you have the option to trade the signals yourself, in order to bring in some extra $$. However, you might want to test the provider, trading paper money for a few weeks before actually throwing money into it.


    Thats it. Now I know that you can find a lot of stuff in this forum which will make everything more easy. I saw a post the other day, with some software which will create membership sites in a few steps. A lot of blackhat software which will get you indexed faster, getting a lot of backlinks, etc. You should be able to be up and running in no time.
     
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    Last edited: Mar 24, 2009
  2. plut0

    plut0 Regular Member

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    Sound alot of work to build credibility on this field.
     
  3. samantha_rocks

    samantha_rocks Newbie

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    hmm!!! seems a bit tough for newbies like me...
     
  4. contentRus

    contentRus BANNED BANNED

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    why so hard eh? all I do is watch news evaluate and I make cash....
     
  5. ifuel

    ifuel Newbie

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    As it says in the post, this is not much about trading forex. If you have a little knowledge about it, this will make it easier. But yes I do agree. This will require some work, and probably more than many other ideas posted in here. But the potential is there...
     
  6. jammie

    jammie Jr. VIP Jr. VIP Premium Member

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    It's quite hard to market signal services.

    It's much easier to use forex affiliates and poach forex newbies into putting some serious money in. Some even give 10% comission. You get 10 people to deposit $10,000 a month and you're sorted.

    Everyone who thinks they will get rich with forex will lose alot of money very quickly =] and if you don't believe me, wait till you find out :p
     
  7. ifuel

    ifuel Newbie

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    I agree. And trading the market is the last thing I mention, and I recommend you only do this after you have tested the provider, using paper money. The point is to market the signals. But yes, being an affiliate of forex brokers is probably also a good way to go.
     
  8. ifuel

    ifuel Newbie

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    true. However, there is also a lot of bull....
     
  9. spankythepyro

    spankythepyro Power Member

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    like your statement :) You are not a "profitable trader"
     
  10. avsfan151933

    avsfan151933 Newbie

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    It is a field where you have to know exactly what you are doing. Newbies beware just hooking up an indicator or expert adviser will lose you money. Why? Simply because if you don't understand it you will not know how to set any of the software up properly. It is recommended that you trade at a minimum of three months on a demo account before you even think of depositing real money, and always always always optimize and constantly improve your EA if you decide to use one. Lastly I recommend that you get a book on FOREX psychology because that is where many traders go wrong, you can have the best system in the world but if you don't follow it consistently you will lose your money.
     
  11. avsfan151933

    avsfan151933 Newbie

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    100% True, consistency is a big factor