FOREX TRADING

What is FOREX?

The foreign exchange market (forex, FX, or currency market) is a global, worldwide decentralized over-the-counter financial market for trading currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market determines the relative values of different currencies.^[1]

Beware

This is a market which all can trade in but is also a market which is full of scammers offering huge returns through magic software solutions. Forex Trading is not easy you need to understand the basics and gain experience. It is like all things you need to practice unfortunately during your formative stage it is possible to blow large amounts of money. There are software application which can assist and help in your endeavours and it may be wise to research them before parting with your money. There are web forums which may be able to help you out with their experience with some of these programs. The one I have recommended at the footer is an excellent Forex Robot program which limits the risk while making money.

Demo Accounts

There are Demo Accounts you can use and these are great for practice but underlying their use is that you can be careless and rash in a demo program and lose thousands and even millions without a care. Whilst a demo account can be an extremely valuable learning aid it may imbue a false sense of security. The other side of the coin is that you you need to realize the difference between make believe and actual money and very quickly. There are no short cuts you need to study the art.

Goals

The best way is to set limits and goals. You need to sail steadily. Do not try to go for the big kill because you may well become an early casualty. It is not an industry for people who want to become rich overnight. Becoming a professional and earn great profits takes time, money and a great deal of effort not to mention psychology. The latter accounts for up to 90% of trading success. The misconception that its too difficult or even worse a mug’s game is not true. You can make money and steady money at that but start small with pre-determined goals – a successful trader is disciplined. Its like horse gamblers you can give the same selections across a card to 20 punters or turf investors (if you like) and one or two will come out making a nice return the others will lose. Why? Because they lack the discipline to spread the bets of their bank and want to go in for the kill or win back their money from earlier losing bets in one hit. When the winning bets do come they have blown their bank.

Summary

This web site is designed to give you a range of articles, videos and information on Forex Trading. Some will be of help others may not. But whatever you do in Forex Trading you need to set goals, overcome your emotions and impulsiveness. Like the turtle slow and steady wins the race. By the way do not give up your day job until you have mastered the art and have a reasonable bank behind you. Go for it!!

Arnold Vee

I am indebted to Wikipedia for the definition of Forex Trading at http://en.wikipedia.org/wiki/Foreign_exchange_market