I am here to share some knowledge, tips, strategies and insights
of how to successfully buy, sell, trade and invest in online Forex
trading. FOREX or Foreign Exchange is the largest as well as the most
liquid trading market in the world and there are many people involved in
FOREX trading all over the world. A lot of people claim that the FOREX
is the best home business that could be pursued by any person. With each
day, more and more are turning to FOREX traders, via electronic means
of computer and internet connectivity.
This means that foreign
exchange is not delivered to a person who actually buys like stock
trading, FOREX trading also has day traders that purchase and sell
foreign exchange same day. Thus, FOREX is not a get-rich-quick scheme as
many people thought which complicates the real concept of online Forex
trading.
Unlike stocks and futures that trade through exchanges,
Forex trading is done through market makers that include major banks as
well as small to large brokerage firms located around the world who
collectively make a market on 24 hours - 5 days basis. The Forex market
is always "open" and is the largest financial network in the world
(daily average turnover of trillions of dollars).
Forex trading
involves trading currency pairs such as the EUR/USD pair (Eurodollar/US
dollar pair) where a buyer of this pair would actually be buying the
Eurodollar and simultaneously selling short the US dollar.
Here's
the deal: Just like any other market, most "traders" are losing when
trading Forex. And the reasons for their failure are mainly because some
lack good trading methods, sound money and risk management principles
and indiscipline trading attitude. In most cases, it could be wrong
mindset and motive towards the market. Some don't even understand the
trend of the market, of which the trend plays a vital role in the life
of any trader, as it is simply says that "the trend is your friend".
Moreover,
many have been mislead by dishonest individuals or questionable brokers
promising outwardly overnight riches and hidden policies. Forex
is still a little like the "wild west", so there's naturally a lot of
confusion and misinformation out there but I'm here to cover many
tactics and strategies used by successful Forex traders all over the
world. Unfortunately, only few Forex traders are actually aware of this
information.
Forex trading is all about regulation, willpower and
determination. Leveraging your strength could be extravagant by
organizing the appropriate Forex trading strategy. You may find hundreds
and thousands of Forex trading strategies out there. All Forex trading
strategies use a variety of indicators and combinations. These
indicators and studies are just calculating support and resistance and
trend in the Forex trading market.
What you are about to read is
more valuable to you than what you will find in many trading courses or
seminars that you'd have to pay for. Anyway, I don't believe in
sugarcoating anything or giving you false hopes of success. There are
enough swindlers doing that already. I want to give you the facts, like
'em or not, so you're empowered to take action and make positive
decisions on how to succeed in the Forex markets.
There's nothing
magical about the Forex markets, because all markets are ultimately
driven by human psychology - fear and greed - and supply and demand.
Sure, every market has its own peculiarities, but if you understand how
the basic drivers of human emotions work, you can potentially succeed
big in Forex market, because the market controls 95% of live trader's
emotions. Some traders think it's a "get rich quick" trading the popular
Forex markets.
There are many advantages of Forex trading over
other types of financial instrument trading like bonds, stocks,
commodities etc. But it does not mean that there are no risks involved
in the Forex trading. Of course there are risks associated with Forex
trading. Therefore, someone needs to understand all the terms related to
Foreign Exchange carefully. There are many online sources as well as
offline sources that provide hints on trading of Forex. These hints are
basically the SECRETS.
As I said above, the foreign exchange
trading is considered as one of the most profitable and attractive
opportunities for investment as any person can easily do at home or
office and from any part of the world. For succeeding the Forex trading,
a person is not required to do any online promotion, marketing etc. The
only requirement in the Forex trading is the account that a person is
required to open with reliable and registered brokers, a computer system
and fast internet connection.
Now, you have to be careful when
opening a Forex account with any broker because some could be SCAM. The
Commodity Futures Trading Commission (CFTC) in US has jurisdiction over
all Futures and Forex activity. When trading in the foreign exchange
markets, individuals should only trade with a CFTC registered entity
that is also a member of the National Futures Association (NFA) and is
regulated by the CFTC. For non-US broker/ bank entities, be sure that
the broker or bank is registered with that country's appropriate
regulatory bodies.
The Forex account could be opened with any
amount between $300 (mini) and $2000 (standard). After opening the
account, a person is required to learn how the Forex market works, demo
trade and after a while go live trading. Moreover, there are some
secrets that have to be followed.
A person can also apply all the
secrets when demo trading and can see if the secrets really work. It
could be said without any doubt that if someone can apply all the
secrets in right way, he/she can easily gain good money by way of Forex
trading.
All successful traders have Forex trading strategies that
they follow to make profitable trades. These Forex trading strategies
are generally based on a strategy that allows them to find good trades.
And the strategy is based on some form of market analysis. Successful
traders need some ways to interpret and even predict the movements of
the market.
There are two basic approaches to analyzing the
movements of the Forex market. These are Technical Analysis and
Fundamental Analysis. However, technical analysis is much more likely to
be used by traders. Still, it's good to have an understanding of both
types of analysis, so that you can decide which type would work best for
your Forex trading strategies.
There has been misconception about
the Forex market because there are different types of traders and
advert out there full of exaggerations that makes the business unreal to
so many people and that is why I am here to show you the SECRETS in
Forex Trading.
What is traded on the Forex market? The answer is
money. Forex trading is where the currency of one nation is traded for
that of another. Therefore, Forex trading is always traded in pairs and
the most commonly traded currency pairs are traded against the US Dollar
(USD). They are called 'the Majors'. The major currency pairs are the
Euro Dollar (EUR/USD); the British Pound (GBP/USD); the Japanese Yen
(USD/JPY); and the Swiss Franc (USD/CHF). The notable 'commodity'
currency pairs that traded are the Canadian Dollar (USD/CAD) and the
Australian Dollar AUD/USD. Because there is no central exchange for the
Forex market, these pairs and their crosses are traded over the
telephone and online through a global network of banks, multinational
corporations, importers and exporters, brokers and currency traders. But
if you really want to make it big in the Forex market, I will strongly
advise that as a "beginner" in the business. Kindly get acquainted with
one or two major currency pairs. Study them very well and make sure you
understand their volatility period.
And to further simplify Forex
trading, you could easily limit your trading to the two most liquid and
widely traded pairs, the EUR/USD and the GBP/USD. This really starts to
reduce demands on your time for trading activities without giving up
good profit potential.
Traditionally, currency trading has been a
'professionals only' market available exclusively to banks and large
institutions, however, because of the invention of the new E-economy,
online Forex trading firms are now able to offer trading accounts to
'retail' traders like you and I. Now almost anyone with a computer and
an Internet connection can trade currencies just like the world's
largest banks do.
Article Written By
Tunde James Akinlabi
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