Recently, many beginners have been asking whether forex trading can make money.

Actually, this is a very good question because you need to understand it clearly before entering the market.

The forex market is the world's largest financial market, with a daily trading volume exceeding 6 trillion USD, far surpassing the stock and futures markets.
In the past, only financial institutions and big players participated, but the internet has changed all that—now retail traders can also join, with over 30% of daily trading coming from individual traders.

But I have to be honest— the first lesson in forex investing education is understanding the risks.
Statistics show that 70-80% of individual investors have experienced losses, and some have even suffered worse.
So if you're not sure whether forex trading suits you, you must first learn the basics thoroughly.

There are three main ways to participate in forex.
The simplest is currency exchange, like exchanging yen when traveling to Japan.
Next is foreign currency fixed deposits—depositting dollars or euros at a bank, which carries the lowest risk but also offers the lowest returns.
The last is forex margin trading—that's what people mean when they say "speculating in forex"—which involves analyzing exchange rate trends and making profits from the bid-ask spread, but it also carries the highest risk.

The appeal of forex margin trading lies in its low entry barrier—some platforms require only $50 to open an account—and it operates 24 hours, allowing both long and short positions.
But the most critical factor here is leverage—leverage can amplify your profits but can also instantly wipe out your principal.

What is leverage?
Simply put, it’s controlling a large position with a small amount of capital.
For example, with 20:1 leverage, depositing 2,000 euros allows you to trade 40,000 units of currency pairs.
It sounds very attractive, but it also means the risk is doubled.
I’ve seen people use 200:1 leverage, and just a 5% currency fluctuation can wipe out half of their capital.

The most important point in forex education is:
Leverage not only magnifies profits and losses but also amplifies human emotions like fear and greed.
Many beginners end up losing everything because they don’t control their leverage properly.

If you decide to trade, choosing which currency to trade is crucial.
There are about 180 currencies worldwide, but only around ten are actively traded.
EUR/USD accounts for 27% of trading volume, USD/JPY for 13%, and GBP/USD for 11%.
The advantage of these major currency pairs is high liquidity, small spreads, abundant information, and favorable trading conditions.

For beginners, it’s recommended to start with less volatile, highly liquid currencies like EUR/USD.
Although AUD also has significant trading volume, it’s a commodity currency heavily influenced by iron ore and wool prices, leading to more volatile swings—less suitable for newcomers.

Regarding platform selection for forex education, it’s essential to choose regulated brokers.
Major global regulators include the UK’s FCA, Australia’s ASIC, and the US’s NFA.
Trading on regulated platforms provides better security and peace of mind.

My experience is that forex trading indeed offers profit opportunities, but only if you learn systematically and train thoroughly.
Beginners should never start with high leverage; instead, practice with low leverage and small positions.
Many successful traders keep their leverage within 10:1.

Another very important point—always set stop-loss and take-profit levels.
Decide your entry and exit points in advance, and stick to your targets—exit decisively when reached, and avoid greed.
The forex market is fast-moving and heavily influenced by news, so continuous learning and strategy adjustment are necessary.

If you’re still unsure whether forex trading is suitable for you, it’s recommended to practice with a demo account first.
Many platforms offer free demo accounts, allowing you to experience trading with virtual funds.
Get familiar with the process before risking real money.

The final lesson in forex education is—risk always comes first.
If you’re not confident, it’s better not to take the trade.