Forex Trading

Forex TradingWhat is FOREX Trading ?ForeX Trading is a money making business where you make loads of money from exchanging currency from buying any currency while it's prices are low and sell it out when the prices rise high, and receive profits in between. FX Trading should make profits if you have the knowledge to predict the low price, keep updated with the market variables, and have the sense to make perfect expectations about the change in price rates. ForeX Trading is the most profitable market where there are billions of $$$ invested daily all over the world both online and offline. You can be an FX Trading broker yourself if you keep following the business updates, and have numerous information resources at your disposal. ForeX Trading through the internet made the FX Trading business much easier because you can view all the latest developments with the currency market online 24/7. Most currency exchange companies will open an account for you for FREE and take commissions on your transactions... Some ForeX Trading Tips before you start 1- Short term doesn't work. So prepare yourself for long term trading periods for 1 month and on... 2- Don't follow news stories on radio or TV. It's non-secure to do so. 3- Don't depend on fixed theories. Read more about the business, but develop your own strategies. 4- Focus on your objectives. List some goals for your business, and work on achieving them during a planned time frame. 5- Don't change your trading system. Once you find one that works fine for you, stick to it. 6- Think smart rather than work hard. While other businesses need you to work harder to earn money.. Forex just needs you to think wisely and you will make more money with less effort. 7- Be patient. Follow the trial and error method, and you will develop yourself for the better. 8- Ignore others. Don't share or discuss your methods with others. 9- Take Risks. The more risk involved the more potential your business will have to grow, but always do calculations before taking those risks. 10- Enjoy your business. This is a challenging business which can bring in good money. You shouldn't be stressed out. Enjoy your job. But before you do this, you will need a forex broker to execute your trades.Who is the "Forex Broker" ?The Forex Broker is the middle man in this process. He uses your money to do Forex Trading, and will receive a percentage of earned commissions. How can i make the good choice ? Choosing the perfect broker depends on some factors like his reputation, commission rate, spread and liability, speed of the

Why Forex Trading

The FOREX Market never sleeps. A currency trader may take advantage of all market conditions at any time. There is no waiting for an opening bell. It is a 24-hour, continuous currency exchange that never closes, you can trade whenever you want: morning, noon or night. This is a very big advantage compared to stock trading with limited trading hours.No single entity one can control the marketThe Forex market has so many participants that no single entity, not even a central bank, can control the market price for an extended period of time. Even interventions by mighty central banks are becoming increasingly ineffectual and short lived, at the stock market, trade prices can be manipulted by stockbrokers and market makers.Large Liquidity in the FXWith $2.1 trillion changing hands daily, the FX market is extremely liquid. This means you can instantaneously buy and sell currencies at any offered market price. You can even set the online trading platform to automatically close your position at your desired profit level (limit order), and/or close a trade if a trade is going against you (stop order). Using a trailing stop can be a powerfull tool to maximize your profits.Low transaction costsThere are no brokerage commission fees for each FX transaction, for all the major currency pairs, the spread is around 3-5 pips and is the only cost. High Leverage FOREX investors are permitted to trade foreign currencies on a highly leveraged basis which could be up to 100 times their investment. An investment of US $1,000 controls US $100,000 of any particular currency. A small margin deposit can control a much larger total contract value. Trading potential in both rising and falling markets Trading currency allows traders to trade during rising and falling markets. One can just as easily "short" a particular currency as go "long", because currencies trade in "pairs". Thus, when you buy a particular currency, you are actually simultaneously selling the other currency in that particular pair. As the market moves, one of the currencies will increase in value versus the other. Interbank market The backbone of the Forex market consists of a global network of dealers. They are mainly major commercial banks that communicate and trade with one another and with their clients through electronic networks and telephones. There are no organized exchanges to serve as a central location to facilitate transactions the way the New York Stock Exchange serves the equity markets.
Posted by ebay at 8:49 AM 0 comments
Labels: forex, Why Forex Trading