A Beginners Guide To Forex Self-Trading

Frequently Aske

d Questions

How do I begin? Please give it to me SIMPLY.w do

1. The best advice on how to learn to trade profitably is to learn from experts with proven track records. Many learning styles are available to beginners at all levels: books, CDs, online courses, group seminars, even one-on-one mentors who will come right your home for a few days. We outline our Forex-Trader picks in Learning Forex Trading. Learning to trade from experts is worth every penny and has saved us untold thousands in mistakes. We would not recommend starting forex trading without any training. It is not hard to learn, nor difficult to trade successfully, but you must first provide yourself with a basic functioning knowledge of 'the game you're in'.

2. While you are learning you will need charting software to practice reading the Market. Charting is an indispensable tool that shows you in real-time data what the market is doing moment by moment and also what the market has done in the past. As you learn to analyze these charts you can determine what trades to enter and exit, where to set your stop losses, limits etc. There are several good charting software services that you can subscribe to online monthly. See our Forex-Trader tested Charting Software picks in Tools of The Trade.

3. Then, to perform your actual trades online you need a real-time 'trading platform' to execute your 'buys' and 'sells' directly in the Foreign Currency Market. You obtain a trading platform from a Forex Clearinghouse that is connected real-time to the interbank market. There are many good Clearinghouses (also confusingly called Brokerage Firms, Market Makers, etc.) that provide you with the trading platform to trade the funds in the account you have opened with them. Before you begin trading your 'real' money, while you are learning, you will practice on your own 'demo account' with play-money in it, which will be provided to you by the clearinghouse you plan to trade through. The contractual relationship you enter into with your Clearinghouse is a very important one because the Clearinghouse you choose determines many trading features and financial advantages to you both as a trader and as an investor. Forex-Trader tested Clearinghouses are reviewed in Tools of The Trade.

We have outlined a Getting Started path with uncomplicated steps. This is the path that we would take if we were beginning trading over again today with 'what we know now'. The products and services we mention in these steps are all ones that we have personally used for some time with consistent success. As always you are free to forge your own path, and if you do, happy hiking. There is a mountain of products and services try out, and if you find ones you like better we would love to compare notes with you.

Explain More About Charting Services

To trade successfully you also must have good charting software and instantaneous data feeds critical to helping you analysis and interpret the movement of currencies moment to moment so you know when/why to buy or sell -- this you subscribe to monthly. You can get a 2 week or more demo to familiarize yourself with one that has the features you like. The costs also vary, and some companies require a year commitment. There are some free charting services offered through the clearinghouses, but they tend to lack the tools to be truly useful. There are also some costly proprietary Specialty Software charting 'hybrids' which are market forecasters tools that look more like video games than charts.

Explain More About How Clearinghouses Work

A good clearinghouse (i.e.. your computer access/link to the live Forex Exchange Market) is the partner with which you trade the money you have deposited with them in your trading account. After trying and demo-ing many we have found a small handful that are truly excellent for the beginner (and continue to be excellent as you grow) -- meaning user friendly, legally accountable to regulatory bodies, and offering fair costs (spreads) for their services/trading software platforms. There still are many worrisome ones practicing in this closing era of unregulated forex trading (new Commodities laws are imminent).

The topic of matching the right clearinghouse for your needs is discussed more in Tools of the Trade, because it depends on a number of factors -- how much you can open an account with, how much the clearinghouse profit spread, what your liquidity needs are, your minimum/maximum stop loss and margin requirements, even where you live and how much time you have to give to trading in a 24 hr. day.

How Much Does it Cost to Begin to Trade?
Learning to trade will entail the cost of books and whatever training method you choose. It will also include a reliable computer with a minimum 128 Mb of memory to run the charting software and trading platform. Ongoing 'costs of operation' include the monthly costs of high-speed internet, charting software, the email forecasting subscriptions -- plan on spending $150./mo. up for ongoing costs.

What about Pooled Clearinghouse Accounts to Trade with More Leverage?

We strongly do not recommend pooled accounts in any circumstance. Perhaps you are considering self-trading a pooled- together family account because it would give you a perceived advantage of more leveraged funds to trade (50:1 up to 100:1 leverage) -- any risks of loss represent a potential risk to family relationships, and for this reason alone we do not recommend aggregating with family or friends.

However much worse are the too-numerous negative experiences of people allowing their investment funds to leave their control to become part of a 'managed' pooled account. Not only is it a very risky investment idea, it is illegal for anyone to 'pool' accounts without compliance with SEC (a USA Securities Exchange Commission) or international equivalent license. Never relinquish direct control over your money/trading account to anyone (i.e.. the ability to make withdrawals, deposits etc. directly by your own authority into your own account).

A good fund manager, if you do choose to go the (legitimate) Managed Account route rather than the Self-Trader route, will make certain you have your own 'segregated account' in your own name in a bank or brokerage firm. These individual segregated accounts can still be traded together as though they were in a single account by a designated trader as long as the clearing house uses a trading platform that allows it. You, as the investor/account holder, have direct access online to your account activity at all times, and direct control over your own account in your own name (just like a bank account). The importance of this, for the safety of your funds, cannot be over emphasized.

Questions From Our Email Inbox

Thank you for inviting people to learn from your experience. I found that to be very generous. I was hoping you may be able to shed little light on just how to go about finding the right currency pairs to buy.

This is where charting software will make it self-evident for you to know what pairs are 'trending'. Technical analysis using charting software: Elliott Wave, Retracements, Fibonacci patterns, short term trending, etc. Good charting software is invaluable! Look at it as one of your 'costs of doing business'.

I have just begun learning how the FOREX works. There are so few opportunities for the lower economic class to achieve financial independence.

It took us a full year to learn to trade forex to achieve consistent profits, but well worth the time and effort. Forex trading can be the great leveler of the self-investor playing field. I and we believe that with dedication to sound, risk-management trading methods you can succeed.

I'm trying to build a financial base, but I just can't find a door in. Is it possible for me to participate directly in the FOREX with smaller amounts - like $1000?

Beginning with $1K. is more of a challenge and more of a risk (but not impossible). $1K represents 1 lot in Forex Trading, and that is the minimum (leveraged) trade that can be made. Perhaps that $1K would be better spent on trading education?

I have participated in Forex 'Games' and other types of online investments that claim to be investing in Foreign Currency (among other things), with returns of 50% a month and more. I actually did get paid. Opinions please?

We strongly urge you to resist any further temptation to send your money away to an investment-type pool (by this we mean do not send your money away to be under someone else's control and in someone else's account). It is unjustified risk, there are much better ways to begin to experience profits from forex trading. Many such online investments have totally disappeared into the Internet ethers from which they came. Typically these investments give no contact information, claiming to be 'offshore', 'for privacy reasons'. They last a few months, their bulletin boards or email newsletters extoll their climbing numbers of 'members' and pay-outs, then without warning their site goes off-line forever. And you never knew who they were that disappeared with your trust and your money or e-gold.

How do you forecast which currency is next in line to increase?

It is not so much that you want to know when any one currency is going up. You can make profits whether a currency is going up (buy), or down (sell). All Currencies are continually rising and falling relative to other currencies, and forex trading is in fact trading one currency relative to another. Good trading opportunities are always present when you know how to recognize them. Technical analysis using charting software, market sentiment, experience will show you which currencies to pair to trade. Forex Trading is a skill of identifying (and acting on) the probabilities.

How do you choose when to rollover or close positions?

Technical analysis using charting software that (when you learn how to identify what you are seeing) depicts resistance levels (how high it will likely rise to) or support levels (how low it will likely stop dropping at). This is helpful for determining whether to rollover the trade for a bigger forecasted profit the next day. However, a rollover does have additional clearinghouse fees attached. Quick in-and-out trades are closed intentionally with the goal of a smaller profit gain (such as a 4 pip profit).

For example, Beginners, who are learning to read their charts, can do very well closing positions at whatever point they have gained +4 pips profit. This represents a $40. profit (in this example we are trading 1 lot Euro/USD, so 1 pip equals $10.). A $40./4 pip gain is a relatively small move on the chart and may not seem impressive until you consider that If you do this successfully 4 times a day you have made $160. profit. With 4 such daily trades in a four day trading week you will have made $640. (consider also that this is even without the magic of compounding). We leave the monthly and yearly calculations to you.

What indicators do you utilize?
We have tried everything we could ever get our hands on. Over time we have selected the ones that are most consistent and well suited to our trading style. See our review of different indicator tools in Tools of the Trade. You will develop your own trading style (best times of day, favorite currency pairs, best instinctual moving-average chart pattern etc.). But experience with basic technical analysis using charting software is always the starting point. Then you add forex forecasting email subscriptions, Allan Greenspan's body language (no kidding) etc.

Are there any real time & reliable direct (commission free) market maker entry sites online?

Yes. It is not necessary to pay a clearinghouse (also known as a market maker, or forex brokerage house) an additional 'commission' for self-trading using their platform/services. They are usually compensated in the 'spread' between the buy price and sell price.

Tools of The Trade - Preparing to Trade

This is a collection of Forex "Tools of the Trade" -- products and services that we have found to be the best of all we have tried over many years, and additionally selected because the companies behind them have demonstrated reliable service, integrity and value. They are beginner-friendly, yet offering a growing trader lots of support. Look for the Forex-Trader discounts.

To trade Forex successfully you will need the basics:

1. A reliable, reasonably fast computer, preferably with high speed access to the internet (DSL or Cable Modem for example). An Internet dial-up account or the telephone becomes your back-up should your primary access fail.

2. Good foreign currencies "charting software" with a reliable, accurate data feed so that you can track currency movements in real time and perform the technical analysis necessary to trade effectively.

3. An on-line Forex trading account with a brokerage firm which provides a reliable Trading Platform, fair "spreads", quick execution of trades, good on-line reporting, and excellent customer service.

4. A subscription to at least one Forex Trading "Advisory Service" which provides market overviews at least daily. This gives you the context and overall directions of the market and will greatly assist in your own analysis and decision making.

Most importantly, you will need effective training and/or mentoring to master the techniques and discipline which 90 percent of beginning traders lack. This can be home study via cd's or on-line lessons, classes you travel to, or trainer/mentors who come to you.

1. COMPUTER HARDWARE:
Specially Configured for Trading.

MicronPC

There are many good choices for computer hardware. Over the last 6 years we have come to rely on consumer-poll-leader MicronPC to provide reliable hardware and great customer support. Their technical support is available 7 days a week and 24 hours per day and it is actually quick and friendly. We have made a special arrangement with MicronPC to provide substantial discounts to Forex-Trader referrals. Click the link below to see four configurations with detailed information and directions on how to order and receive a discount averaging hundreds of dollars off the price you would pay if you went directly to the Micron website and configured the same machine.

Telekinetics

Computer Trading Hardware For the Consummate Trader.


This is the Quintessence of Trading Computers.
TriKinetic is the only computer manufacturer dedicated exclusively to building trading computer solutions backed by lifetime technical support for the serious trader for whom downtime is not an option. With over 5 years experience and key relationships with the trading industry players, TriKinetic is a leader in complete 'Plug-n-Trade' (turnkey) trade stations.

2. FOREX CHARTING SOFTWARE

E-Signal

This charting software by Townshend Analytics professional charting software, works with a variety of data sources such as Comstock by Standard and Poors, Infotek etc. We use Comstock data for its Realtick is available by the month, a nice startup cost feature for beginners.

3. TRADING PLATFORMS Clearinghouses Providing On-line Access to the Forex Trading Market.

FXCM - Forex Capital Markets LLC A few the many reasons that we have been with FXCM the longest (and happiest) of the many Trading Clearinghouses we've tried -- they are commission-free and offer individual client accounts which are viewable online, their trading platform has the most efficient execution, with trader-friendly spreads and policies for both beginners and advanced traders with either large or small accounts. With an eye to coming regulations they voluntarily registered with U.S. regulatory agencies to demonstrate client assurance of safety through compliance with Securities rules.

A Word of Experience:
FXCM Charting software is free with a demo or live account, although useful it is not as complete as professional charting software. Also, their 'Mini-Account' might seem like a good start for a cautious beginner, however we have experienced much safer and more profitable trading results by learning to trade on their free demo account then, when ready, going 'live' with a 'full-size' trading account.

4. TRADING ADVISORY SERVICES

Trading Advisors are the esteemed 'Forecasters' of the Forex Trading Industry, experts who predict upcoming market moves based on experience, technical analysis and a host of other indicators.

Forex Advisor - Live Trading Advisory

This advisory service is one we are enjoying more everyday, naturally first because of its value and consistently profitable returns month after month with truly excellent risk management protocols. But also because this system is the ultimate in 'live coached trading'. This advisory teaches you risk-safe, consistently successful, profitable trading strategies -- one live session at a time.

A professional trader does all the analysis and posts charts and how-tos online on a leading edge proprietary Live Trading Platform while calling real-time trades with specific entry, exits and stop loss points.

This Affiliate Program Tutorial aims to give you a quick overview

It's your road map to success as an affiliate.

I've been earning a good living from affiliate programs since 1998. Based on that experience, this tutorial tells you the 18 steps to take to generate a useful income from affiliate programs.

No tricks. No gimmicks. Just solid, reliable methods designed to work for years.

You have the choice of many different ways of earning affiliate commissions.

In my experience, you'll have your best chance of success if you do the following. Find a niche and create a useful, interesting, content-rich, keyword-rich website on one topic and weave in affiliate links and AdSense ads.

This method – with the more recent addition of AdSense ads – has worked beautifully for me since 1998.

I urge you to master this basic method. It's a bit like serving an apprenticeship.

As part of your apprenticeship you'll learn SEO (search engine optimization) skills, copywriting skills and various other Internet marketing skills which will prove to be invaluable, whatever route you choose next.

With any luck, you'll have a bit of fun, too! I do.

I include Google's AdSense in this tutorial. Strictly speaking, AdSense is an advertising network. However, in many ways it's similar to an affiliate program. I think AdSense is fantastic. It's free to join, free to use and easy to use.

It's often much easier to earn good money from AdSense than affiliate programs, so it's essential that you include AdSense in your plans.

OK. Let's get started...

1. Set a goal.

If you want to go somewhere, you need to know where you're going.

Let's start with a modest goal. Say you aim to earn a total of $300 (US) a month in affiliate commissions and AdSense revenue. Imagine what you could do with that money. A holiday? A better lifestyle?

I've kept the amount low, because it's important that you believe you can do this. Achieve small successes first, see the money in your hands or in your bank account, and then increase your goals.

Perhaps you have much larger goals. That's OK. Whatever your goals, I strongly recommend that you serve your apprenticeship by taking these 18 steps. They'll give you solid knowledge and experience on which to build your affiliate business.

2. Find your niche.

Read Ken Evoy's free Affiliate Masters Course and use the excellent advice in it to find a niche that suits you and your interests.

Print out the Affiliate Masters Course, find a quiet, comfortable spot and read it several times.

Spend a lot of time thinking carefully about this and jotting down notes. You're planning a business, so don't rush it. It's very important.

You'll probably avoid Internet marketing topics because that field is so overcrowded and competitive. It's much easier to succeed if you locate a less competitive niche.

Choose a topic that is easy to write about.

Even if you've already chosen a niche, I urge you to read the Affiliate Masters Course. It might make you change your mind.

You can follow your passion or chase the money. With luck – and a bit of keyword research – you may be able to do both.

Don't decide definitely on a niche topic until you've taken the next two steps...

3. Choose a profitable niche.

Do some research on Google AdWords and Wordtracker to choose the most profitable niche from among the ones you've chosen. Because you're planning to use AdSense, you want valuable keywords or key phrases, if possible ones that people are paying at least 50 cents per click for on AdWords and Yahoo! Search Marketing.

You're going to build a site the search engines love, so you also want to find key phrases that many people are typing into search engines. You don't rely on guesswork.

You must do this BEFORE you start building your web site. That's critically important.

Here's a useful free tool I like using for quick, rough keyword research: pixelfast.com/overture/

Type in a phrase, for example, "hiking boots", click "Go", follow the instructions, and you can see how much advertisers are paying per click for that phrase on the Yahoo! Search Marketing (formerly Overture) network of websites.

You can also see how many people searched for the phrase the previous month. For a number of reasons, this figure is often unreliable and can be grossly exaggerated. That's why I double check results using Wordtracker.

Wordtracker's free trial is fairly limited. Fortunately, they allow you to subscribe cheaply for a day or a week at a time. It's very fast, so you can do an awful lot of keyword research in a day. I use the annual subscription now.

Go to Google's AdWords and find out how much advertisers are willing to pay for the keywords or key phrases you're interested in. You can do that by playing around with Google's free Keyword Tool.

For example, try putting in a keyword or phrase, such as "recipe" and click on "Get More Keywords". Pretend you're willing to pay the maximum per click the tool allows - 100. (It won't work properly if you ignore this.) Over on the right side of the page, make sure that "Cost and position estimates" is selected.

The tool will calculate for you the estimated average CPC (cost per click) for a whole lot of words and phrases. Try entering a different word, say "debt" or "hosting", click on "Re-calculate" and watch how the CPC changes.

You don't HAVE to choose a topic which has expensive keywords. Often topics that have expensive keywords are very competitive. You may do better choosing a less competitive niche with cheaper keywords.

If you use Site Build It you'll find the brainstorming tool in it awesome to help you come up with ideas and phrases you wouldn't have thought of without it.

Beware: If you choose certain topics, Google will not allow you to place AdSense ads on your site and you'll miss out on a very lucrative opportunity.

Such topics include gambling, firearms, ammunition, balisongs, butterfly knives, and brass knuckles; beer or alcohol; tobacco or tobacco-related products; and prescription drugs.

For a full list of topics you may wish to avoid see: https://www.google.com/adsense/

Publishers can choose to have their ads displayed only on Google or also on a large network of sites. Will AdSense ads you see on Google appear your pages? To get an idea, find web pages that have material similar to the content you're planning to create and look at their AdSense ads. You can also use AdSense's preview tool to see which ads are being displayed to people in different countries.

4. Research affiliate merchants.

Do research to see if there are suitable affiliate merchants which match your topic.

You want ones that have excellent products, excellent reputations and sites that look as though they're good at selling. You can search the AssociatePrograms.com affiliate directory for ideas.

Consider aiming for lifetime commissions.

If you're lucky, you'll manage to select a web site topic that has affiliate programs which pay lifetime commissions or residual commissions – the sort reviewed at LifetimeCommissions.com.

You'll earn repeat commissions when "your" customers make more purchases.

5. Build a useful, interesting web site on your niche.

Create a content rich, keyword-rich site, designed to be found in search engines.

Show your personality. Have a bit of fun. Be memorable. You need to connect with your visitors. Remember that people like buying from people they like.

There's no space in this affiliate program tutorial to describe how to build a web site. For that, you'll need a good instruction manual.

If you're short of money, you can hunt for free information on sites such HTMLGoodies.

You'll save yourself an enormous amount of time and frustration if you take the plunge and buy a good instruction manual written specifically for affiliates.

Here are the two best options:

• For keen do-it-your-selfers, I recommend Rosalind Gardner's Super Affiliate Handbook.
  
  Rosalind is a real been-there-done-that super affiliate.
  
  Her instruction manual shows you how she builds very successful sites using web authoring software.
  
  It starts right at the beginning, discussing topics such as myths about doing business online, mistakes to avoid, how to choose the best topic, how to choose the right domain name, etc.
  
  The book, updated in May 2006, takes you step-by-step through the whole process.
  
  One particularly useful feature is her explanation of how she achieves high conversion rates (visitor-to-sales ratios), achieving conversion rates of 4% or 6% while most affiliates are happy with 1%.
  
  Another of the strengths of the book is her descriptions of a wide variety of ways to get traffic to your site. This is important - too many affiliates rely on just one or two traffic-generating methods. The more traffic-gemerating methods you have, the safer your business is.
  
  Rosaland is genuinely successful, generating hundreds of thousands of dollars a year. Now she's also a very successful author, with sales of more $1 million from her book, which is excellent value.
  
  When you learn from her, you're learning from a winner.
  
  Learn more about Rosalind's Super Affiliate Handbook here.

• For affiliates who want to simplify things as much as possible and automate the tedious techie stuff, I recommend Ken Evoy's Site Build It (SBI).
  
  SBI is a site-building, site-hosting, site-promoting suite of tools, all in one place.
  
  Once you have SBI, you don't have to go scurrying all over the Net adding more tools and software. You have almost all you need in one package, so you can concentrate on the fun part – creating useful, interesting content.
  
  (Once you have SBI, the only addition you need to buy occasionally is a cheap, one-day subscription to Wordtracker. It's useful to double check the SBI brainstorming results against Wordtracker results.)
  
  SBI comes with a newly updated, truly comprehensive instruction manual, a step-by-step Action Guide.
  
  SBI is the tool I give my assistants.
  
  Ken Evoy's instruction manual is doing my work for me. First it taught Rupert and now it's teaching Ros how to build a high quality, successful, revenue-generating site.
  
  You could build a site without SBI, but using it saves you time and effort by simplifying the process.
  
  SBI teaches you how to optimize your web pages so they'll be found in search engines. After building a page, you click the "Analyze It" button and it tells you what you need to do to improve it.
  
  The SBI technique really works. Two of the SBI sites that Rupert built are included in the case studies on the SBI site.
  
  See the proof in the SBI case studies

6. Add affiliate links.

As you write the articles for your site, weave affiliate links into them. Always have a typical visitor in mind as you write the articles. Speak to that visitor.

Your task as an affiliate is to help your visitor decide what to buy.

One successful technique is to gradually lead your visitor towards a purchase. Start by outlining a problem, discuss a good solution that has worked for you, and end the article with a link that is a call to action, such as a hyperlink that says, "Find out more here."

Your task as an affiliate is NOT to sell (that's the merchant's job) but to presell, to warm up your visitors. You want your visitors in a ready-to-buy frame of mind when they arrive at the merchant's site.

For superb advice on preselling, I strongly recommend you join Ken Evoy's 5 Pillar Affiliate Program. It's free to join.

Ken is an absolute whiz at preselling and he's renowned for working extremely hard to help his affiliates succeed. He has a superb program. It's been No.1 in my Top 10 for several years.

7. Place AdSense ads on your site.

Here's an excellent free AdSense tutorial.

If you have a good, popular site, it's remarkably easy to make good money with AdSense.

8. Get links.

First, link to other sites. Choose sites that have similar or related themes, and invite those sites to link to you.

This is hugely important. Search engines love sites that have many links to them – especially if those links come from sites which are themselves popular.

Now you see why I said build a useful, interesting web site. If you do that, people are more likely to link to your site.

Here's an article I wrote describing how to get reciprocal links.

9. Anchor text.

You'll also need to understand the importance of anchor text, the words you use to link to pages on your site, the words people use when they link to your site.

To search engines, anchor text is very important.

10. List your site in major directories and niche directories in your industry.

You probably already know about Yahoo! (good but expensive), DMOZ (often takes months to get into) and Zeal (tricky to get into; for non-commercial sites).

Here are some more directories (some charge a fee):

Gimpsy
Skaffe
Joeant
GoGuides
Business.com
SevenSeek
ThisIsOurYear
Looksmart (probably too expensive)
BlueFind
WowDirectory
Best of the Web
GeniusFind


Guides to web directories

David Mahler has a Guide to Web Directories. It's a good list of recommended web directories.

Here's another list: http://www.strongestlinks.com/directories.php


How to find niche directories:

• Go to Search It! (It's a very handy free research tool.)

• Scroll to the Search Category, "Specialty Hubs and Directories"

• Choose one of the 4 options in STEP 2

• Read the "Click Here for Information..." help before proceeding

• Complete STEPS 3 and 4, and then click on Search It!

• Read the tutorial. It tells you what to do with the search results

• Get your search results. You should be able to find relevant, themed hub sites and directories which will list your site. Some charge a fee, some are free.

11. Write articles and distribute them to article directories (fairly easy) and try to persuade newsletters and other sites to publish them (more challenging). This step isn't absolutely essential, but it helps enormously if you do it. Now you understand why it was so important that you chose a topic that was easy to write about.

12. Add more pages and get more links.

Keep adding useful, interesting, keyword-rich pages (you do research at Wordtracker for this) and keep encouraging more sites to link to your site.

Make friends with other web site owners, and more people will link to you...

13. Be patient.

If your new site is typical, nothing much will seem to happen for the first couple of months or so, and you'll probably become frustrated and find it hard to believe that this is going to work.

You're likely to feel annoyed, cheated and ready to quit. You're likely to be a prime target for people selling get-rich-quick junk.

Many affiliates give up at this stage. Stick with it. If you're persistent and get the details right, the process I'm describing works beautifully.

Learn something new every day. Do something to improve your business every day. If you do that, success is inevitable.

14. Expect to see signs of success.

Eventually, because of all the links to your site on other sites, Google, Yahoo! and MSN will find your site and start sending you traffic.

Perhaps around the three-month or four-month stage you'll be receiving 100 visitors a day. Visitors will like what they see and some site owners will start linking to you and asking you to link to them.

Keep at it. You're just getting warmed up.

15. The payoff...

About six months down the road, after little expense but quite a lot of hard work and research, you hit your magical $300 a month mark, from affiliate sales and from AdSense ads on your site.

Depending on the niche you've chosen and the skills you've learned, you might earn considerably more than $300.

Perhaps after 12 months, you'll be earning $500 to $1,000 a month from your site.

The checks keep coming in, month after month, even when you take a little vacation. You start telling friends how easy affiliate marketing is, and are puzzled when they're not convinced.

Of course, it's not really easy. It just seems easy after you've done the hard work.

...or the NON-payoff

If you've merely scanned the instruction manual and jumped right in without doing any research and built a "Make Money on the Internet" site, you'll probably earn very little. A search on Google for "make money" displays more than 4 million pages. If one of those is yours, you have a LOT of competition.

If you did this and it isn't working for you, go back to step 1 and start again.

16. Tweak your site.

To boost your conversion rate (your visitor-to-sales ratio), try little experiments, one thing at a time.

Try changing the heading on a page, the words, the colors, the placement of your links. With each change wait until about 1,000 visitors have seen the change, and monitor your affiliate commissions to see if they rise or fall.

You do this because you understand that if 1% of your visitors are buying and tiny changes boost your success rate to 2%, you'll DOUBLE your commissions.

17. The future

When you reach your goal of $300 a month, you wonder whether you should expand your site, perhaps adding a newsletter, an autoresponder course or two, a forum, RSS newsfeeds, a blog, a whitepaper, a report to sell ... and turn it into a portal. You dream big. Perhaps you even start dreaming of having your own affiliates promoting your reports for you...

Or perhaps you just research another little overlooked niche and start on your next simple little, low-maintenance money-generating site.

It can be done. The main ingredient needed is persistence. Been there, done that, and I have a very nice lifestyle to prove it.

The $300 a month target is very conservative. If that's all you earn, you've done something "wrong". You haven't chosen profitable keywords carefully enough, you haven't built enough attractive, keyword-rich pages, you haven't learned the basics of optimizing pages for search engines, or you haven't attracted enough good quality links to your site.

That's the wonderful thing about this business. You can make lots of mistakes and still earn useful money. Just don't make TOO many mistakes.

18. Take the first step.

That's the one that matters most.

I suggest you go back and read through this affiliate program tutorial again.

Picture yourself owning a successful Internet business. Picture yourself opening letters and finding checks in them.

Imagine enjoying yourself spending the money, perhaps even giving up your day job so that you can concentrate on your own business.

22 Practical Ways to Promote Your Product/Service

This article describes methods you need to set up a LIFETIME MONTHLY INCOME! with your own .ws website, integrated marketing system, business cards, promotional movie, one of the top recruiting groups with active sponsors who will help you build your business, dedicated forum to share ideas and successes and an ingenious marketing system that works!

1. You should build trust which is the foundation of selling.

2. Maintain your focus - do not waste time, energy or money trying to promote multiple programs.

3. Use business cards with web address and contact information.

4. Do not act as a PhD in your program - let the website, promotion movie or info call do the talking.

5. When contacting prospects, less is better - do not overwhelm your prospects.

6. Ask questions of your prospects - the power is with the questionner, not the information giver.

7. Look at business opportunity ads in your local newspapers/ magazines and ring up the advertiser offering your product/program.

8. Use the "invite" system on your program's website to invite friends, family and business colleagues to join your program.

9. Make an initial personal contact with your
prospect by phone - it will pay off in the end.

10. Write articles about your product/service and submit to ezines and article directories.

11. Start your own blog on the topic of your product or service. Get a free blog plus hosting with Google.

12. Clean and rationalize your mailing list(s).

13. Review your online marketing strategies.

14. Research your target market more thoroughly.

15. Expand your offline marketing activity.

16. Reorient your marketing text to the season's themes.

17. Increase your participation in forums and conference calls.

18. Distribute your business cards/brochures while you are away in another location.

19. Implement or refine your ad tracking.

20. Explore ways to achieve leverage amongst your online programs.

21. Investigate potential joint ventures.

22. Catch up on those eBooks you have been meaning to read.