Forex trading is the trading of foreign currencies through a broker. In my own terms, I'd say forex trading is the buying and selling of foreign currencies in lots in a volatile market with a leveraged margin account through a broker.
Happy good Friday to you my beloved reader, tired of hearing about sports betting, virtual football trading and sundry then read attentively.
I know you must have heard about Forex. Forex simply means Forex eXchange. The forex market is one of the most liquid and volatile market in the world. I am not writing to teach you how to trade forex but to encourage and guide you.
Before I ventured into the Forex, I used to hear about all the disadvantages of forex and how various people lose all their money on Forex, you too will also lose money if you trade without the basic tools. I have also lost a few dollars and made profits too and from my experience I'd say Forex is a wonderful online business. Though there is a certainty for losses when the trend doesn't go as speculated but there is also a greater window for profits.
Shun the myth that says forex is hard and a scam. From my experience, I'd say that forex is an online trade for the patient forecaster who knows when to open and close positions and also when to breakeven, cut down losses and also clear profits.
Before now it used to be a long procedure to deposits and withdraws funds from a live trading account. Then one had to open a domiciliary account with a bank, call the broker to process transactions and all that but now with the aid of several options for depositing and withdrawal of funds such as Visa cards, Mastercard, netteller, ego pay, Liberty reserve, bank wires and so on, that issue has been greatly resolve.
Initially one had to have at least a thousand dollar to open a live forex trading account thereby limiting the market to only those with reasonable accounts but now there are brokers who accept as low as one Us dollar.
From my own point of view, after demo trading for awhile and having selected a good broker, it's also wise to open a $1 dollar account and trade cents that is buying as little as 0.01lots of any currency pair with at least 3pips spread. In so doing, you'll notice the difference between a demo and live accounts thereby testing the speed of trade executions, customer support and also fight human emotions and greed knowing that your one dollar is a stake. After awhile when you think you are ready, you can increase your capital.
While having a 9 to 5 job is good, trading during free time especially when trading sessions overlap can help secure a few pips per session and you are okay with at least 10pips profit from each position with good technical and fundamental analysis and the proper use of additional technical indicators, you could suppress your greed and enjoy forex trading as a hobby and a money making platform.
Forex exposes you to the world's economic and also keeps you up to date with current economic breaking news, helps you improve your mathematical and statistical skills, makes you enjoy listening to business news and also become chart friendly. A better understanding of forex also boosts your binary options trading predictions.
Cut down the time you spend on social networking and spend your data plan on something that can pay for monthly subscription and even become a part time job. Use your youth wisely.
Yes, trading currencies involves a high risk of losses but so is every business, it entails risks and that's the challenge that makes a job adventurous and interesting.
Committed to your online success.