Sunday, 24 July 2011
The Realities Of Trading Forex – Part 2
Some newbie forex traders want to take the easy path to earning a lot. The best way to do this is if you have a forex trader colleague who has been using a system that has already earned him big profits and is willing to share the system with you. Another more risky way is by buying a ready-made system that works. Buying a system is easy, it is readily available online. Choosing the one that will work is the hard part. Only when bought will you really know if the system does work. How do you do it then? It boils down to the basics. Be patient and equip yourself with the proper basic knowledge and training before you go into the business of foreign exchange trading. After all, it may spell you your whole life savings and your entire future if you lose a fortune in the forex market.
The Realities Of Trading Forex – Part 1
Before you go into trading currencies, you must take into consideration some basic facts about foreign exchange. Almost 100 percent of people who go into trading lose money or trades. This is mainly due to poor planning or having poor money management rules. You must spend more than enough time in planning and training. Also, being a super perfectionist will not help you. On the contrary, it may give you a hard time adjusting to trading.
For those who are unemployed, have low income or even those who cannot even afford to pay their electric bills, foreign exchange trading is not for you. To start a “mini” account, you would need at least $10,000 dollars, which you can afford to lose. The $10,000 is for a mini account only. It is more advisable that a trader should at least have a standard account of $100,000 or more before starting to trade. And this is only a modest start. With a low trading capital of a few hundred dollars, you cannot expect to become rich through foreign exchange trading. As you have come across this beginner’s e-book, forex is traded in lots. In forex, money begets money. The more money you invest, the higher chance you have of getting bigger profit.
For those who are unemployed, have low income or even those who cannot even afford to pay their electric bills, foreign exchange trading is not for you. To start a “mini” account, you would need at least $10,000 dollars, which you can afford to lose. The $10,000 is for a mini account only. It is more advisable that a trader should at least have a standard account of $100,000 or more before starting to trade. And this is only a modest start. With a low trading capital of a few hundred dollars, you cannot expect to become rich through foreign exchange trading. As you have come across this beginner’s e-book, forex is traded in lots. In forex, money begets money. The more money you invest, the higher chance you have of getting bigger profit.
Forex Trading Strategies – Part 2
Be warned! There is NO better type. In order to become a real Forex master, you must learn how and when to use both fundamental and technical analyses. If you are not convinced, then here are some examples of situations when focusing on just one type of Forex trading analysis could result in absolute mayhem.
Let us say that you are studying your price charts and you discover a promising trading opportunity. You feel thrilled and get so keyed-up, thinking about all the money that you are going to get. You tell yourself, “Who would have thought this trading opportunity could ever exist or be found. Man, I love my price charts.”
You now go on and proceed with your trade with that smug smile on your face.
Hold on a minute! Suddenly, the trade makes a 20-pip move in the opposite direction! You knew nothing of the fact that an interest rate decrease was implemented for your currency and now guess what – everyone is just trading in the other direction.
Let us say that you are studying your price charts and you discover a promising trading opportunity. You feel thrilled and get so keyed-up, thinking about all the money that you are going to get. You tell yourself, “Who would have thought this trading opportunity could ever exist or be found. Man, I love my price charts.”
You now go on and proceed with your trade with that smug smile on your face.
Hold on a minute! Suddenly, the trade makes a 20-pip move in the opposite direction! You knew nothing of the fact that an interest rate decrease was implemented for your currency and now guess what – everyone is just trading in the other direction.
Forex Trading Strategies – Part 1
When handling Forex, there are basically two types of analyses you can take.
Two Types of Trading:
■ Fundamental analysis
■ Technical analysis
Fundamental Analysis
This is basically a way of looking at the market by considering the country’s socio-economic factors that influence the demand and supply of that country. In simpler terms, you look at whose country’s economy is good, and whose is not. This is due to the fact that if the country’s economy is doing well, then more countries will have confidence in that country’s currency.
An example of this is the prominence of the U.S. dollar. Since the economy of the United States is progressing, so are the interest rates to manage price increases. As a result, the value of the U.S. dollar continues to increase as well. That is chiefly what fundamental analysis is all about.
Two Types of Trading:
■ Fundamental analysis
■ Technical analysis
Fundamental Analysis
This is basically a way of looking at the market by considering the country’s socio-economic factors that influence the demand and supply of that country. In simpler terms, you look at whose country’s economy is good, and whose is not. This is due to the fact that if the country’s economy is doing well, then more countries will have confidence in that country’s currency.
An example of this is the prominence of the U.S. dollar. Since the economy of the United States is progressing, so are the interest rates to manage price increases. As a result, the value of the U.S. dollar continues to increase as well. That is chiefly what fundamental analysis is all about.
The Importance Of A Good Forex Trading Education
If you want to succeed in any endeavor, you need to have persistence and dedication. Even your daily life requires it because if you’re the type of person who is quite lazy and wants to goof around, you’ll attain nothing of importance in your life.
Ever since you were a little kid, you were already taught with the value of good education. From your nursery days, until you finally graduate in college, you have dedicated many years to get a good education. But it doesn t end there.
Each time you encounter a new endeavor, activity, or thing, the first to come into your mind is to learn about that particular thing or activity. So you see, no matter what we do, education continues. And this is especially true with forex trading.
Statistics have shown that over 94% professional traders lose a lot of money every day in forex trading alone. But don t be discouraged; in fact why not use that piece of information to strive hard to get a forex trading education.
Ever since you were a little kid, you were already taught with the value of good education. From your nursery days, until you finally graduate in college, you have dedicated many years to get a good education. But it doesn t end there.
Each time you encounter a new endeavor, activity, or thing, the first to come into your mind is to learn about that particular thing or activity. So you see, no matter what we do, education continues. And this is especially true with forex trading.
Statistics have shown that over 94% professional traders lose a lot of money every day in forex trading alone. But don t be discouraged; in fact why not use that piece of information to strive hard to get a forex trading education.
A Forex Trading Course Is A Must For Forex Beginners
In the world s largest financial market where exchanges reach up to trillions of dollars each day, many people would really want to participate in this market. Aside from being the largest financial market in the world, Forex is also the most liquid market in the world where trades are done 24 hours a day.
A lot of traders have become very rich trading in the Forex market. And, many people who trade in the Forex market everyday have found a great way to replace their day jobs. Some even became millionaires almost overnight by just trading in this financial market.
Trading in the Forex market can be very attractive. However, you should also know that there have been people who suffered extreme financial losses in the Forex market. It is true that the Forex market offers a very good money-making opportunity to a lot of people, but it also has its risks.
It is a fact that people who didn t have the right knowledge and skills trading in the Forex market suffered huge financial losses and some even went into debt. So, before you enter the Forex market, it is essential that you should have the necessary knowledge and skills as a Forex trader in order to minimize the risk of losing money and maximize the potential of making money.
A lot of traders have become very rich trading in the Forex market. And, many people who trade in the Forex market everyday have found a great way to replace their day jobs. Some even became millionaires almost overnight by just trading in this financial market.
Trading in the Forex market can be very attractive. However, you should also know that there have been people who suffered extreme financial losses in the Forex market. It is true that the Forex market offers a very good money-making opportunity to a lot of people, but it also has its risks.
It is a fact that people who didn t have the right knowledge and skills trading in the Forex market suffered huge financial losses and some even went into debt. So, before you enter the Forex market, it is essential that you should have the necessary knowledge and skills as a Forex trader in order to minimize the risk of losing money and maximize the potential of making money.
Forex Trading: The Best Education You Can Have
People trade on a daily basis. Some trade their services for money, while others trade products like food, toys and other things for money. People trade to earn money to properly live their everyday lives.
This is why people work, why people put up businesses and why people trade in the financial market. Today, it s all about money in order for you to give yourself and your family a comfortable life.
If you are considering making money aside from your day job or starting a career, you can do so by trading in Forex. Surprisingly, most people don t understand how Forex works but are still interested to trade in this financial market. Besides, people would really want to trade in the largest, the most liquid financial market in the world.
Forex 101: An Educational Guide for Beginners
New in the Forex market? This market may sound really complicated and scary to tackle but it s not. Just like in any kinds of trade, you make money when you buy low and sell high. Forex trading is simply trading currencies in the Forex market.
Forex is the largest financial market in the world. It generates trillions of dollars of currency exchanges everyday and it operates 24 hours a day and seven days a week therefore, also making it the most liquid market in the world.
In the world of Forex, trading in this very liquid market is very unique compared to other financial market like stocks. Since the Forex market operates 24 hours a day worldwide, which starts at Sydney and ends in New York, trading is not centralized in one location. You can trade in Forex whenever you want regardless of the local time.
In the past, Forex trading was only offered to large financial institutions, like banks. And, it was also only offered to large companies, multi-national corporations and large currency dealers. This is because of the large and extremely strict financial requirements the Forex market imposed. This means that individual traders and small businesses are not able to participate in this liquid market.
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