Forex Trading For Beginners - First Get Trained! by Vahid
You already know that Forex trading (also known as currency trading), is a great (and legal) way to make money at home. But do you know that more than half of the Forex traders are actually Forex losers?
70% of Forex Traders lose money in the market; and only the remaining 30% work towards earning millions annually. These 30% are a success at it because they have Forex trading skills and are formally trained.
If you are serious about working at home, making a fortune by trading at home, you should consider LEARNING about Forex before you start. Forex market is not a one off thing that a beginner can take risk with. An investor needs to brush up his/her skills before nose-diving into it.
Forex is an abbreviation for Foreign Exchange, and it is a system where currency of one nation is traded for another. This is the reason why it is done in currency pairs. 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).
For the understanding of beginners, Forex Trading is about simultaneous buying of one currency and selling of another. The world's currencies are on a floating exchange rate and therefore as already mentioned earlier, are traded in pairs.
Forex market is different from our regular shares & futures market. Since the transactions in Forex trading are conducted between two counterparts over the telephone or via an electronic network, Forex Market is treated as an Over the Counter (OTC)/ 'Inter-bank' market.
Forex trading is a 24-hour market that begins in Sydney every day and covers the globe as the business day begins in each financial center, from Tokyo, London, to New York and so on. Likewise an average small to medium trader can trade as often as 10 times a day.
Forex Trading is referred as 'Interbank' market because for years it was dominated by banks. Of late though other participants like large multinational corporations, global money managers, registered dealers, international money brokers, futures and options traders, and private speculators have also joined it.
The most often asked question by beginners in Forex trading is, "How much money can I make and how soon?" The one and only answer to this vague question is rather simple. "Ultimately it depends on your appetite for risk". Assuming you trade at the 100:1 leverage - while this type of leverage allows investors to maximize their profit potential, the potential for loss is also equally high. A more pragmatic margin trade for beginners in the Forex markets would be 20:1.
Forex trading skills and its complexities can be learnt irrespective of our educational background, age, gender, country etc. Joining a forex trading training program that is straight forward can help you to understand the complexities of the Forex and teach you to trade profitably.
Copyright 2009 - Vahid is a forex trader and forex market analyst. His
website is the most reliable reference for advanced, intermediate and beginner
forex traders: Trade Forex at Forexoma.
Join Vahid's program now and start making money and learning forex at the
same time. Earn while you learn: Earn Money through Forex.
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