Friday, 2 October 2009

Learn Forex Trading - Even The Experts Start Somewhere!

Learn Forex Trading - Even The Experts Start Somewhere!

Forex Trading can be a mystery even for experts. One thing is clear, if you want to have a chance to trade profitably you have to learn the basics.
Remember to start off small, then grow as your success grows! Keep in the back of your mind that almost anybody has to lose sometime. The winners in Forex Trading are those who win most of the time, whether that be ‘the big one’ infrequently or lots of consistent small wins.

There are people flying around in expensive jets without the money for their next refuel, and there are those looking to buy their next executive plaything. Then of course there’s the teenager down the street working on his first million and grandma who mysteriously just bought a new car. So watch your head, mind your wallet and be keep in your thoughts that this Forex trading stuff is not a game to be taken lightly unless you know how to play.

Do it right and Forex Trading can buy you almost anything, even if you start out with just enough bucks to buy your first e-book on the subject. Get it wrong… well, the big boys use big calculators.

So where do you start to learn about Forex Trading? There are hundreds of websites, e-books and tutorials dedicated to the subject that can help get you started.

A number of the big online trading houses offer ‘trial’ accounts where you get to play with ‘dummy-money’ and see actual results over the trial period. When I tried it, I lost my shirt, but then, I didn’t do any reading and to be fair, I had in the back of my mind all the time that it wasn’t real money I was betting with. I must say, for a while there, I was hooked and one day I’ll give the matter serious attention (when I feel brave and have read enough.

There are lots of variables involved with Forex that you need to keep in mind. In my own experiment, I realized that a good understanding of basic economic factors (like budget announcements) have a big affect on the markets. Seasonal changes, corporate announcements, big-mergers, war, terrorism are just some of other important variables that effect FOREX.

I figured that I could have increased my chances if I had a plan, one that included my target currencies and a thorough history of trading over the last five years or more. In my view, I would want to know when government budgets are announced, and have an understanding of previous movements at similar times. I would also want a clear history of exchange movements affected by top corporate announcements and world plot correlations with past profit announcements. You will also need to have a good ‘feel’ for the abnormal, like droughts, hurricanes, forest fires, violent episodes like war, massive infrastructure building projects etc. You also want to be alert to new discoveries that might bring prosperity on a national scale to your target currency, like oil finds, medical breakthroughs, even hosting the Olympics can be a major currency mover.

Remember that little movements mean massive sums of money have changed hands. Don’t be fooled into thinking that a half pip isn’t much. If you have a chance to make money – take it and move on to your next trade. Don’t get all head-strong and greedy.

Above all, read what the experts have to say. Your best ever investment will be in your own understanding on the subject, so buy the books, read them all and then you will have a little of what you need to succeed in FOREX

Forex Online Currency Trading

FOREX is an international online currency exchange that was established in 1971. It is now the premier foreign currency exchange market in the world, with an average daily trading volume reaching as high as one and a half trillion. Three types of traders make use of FOREX-banks, individuals, and corporations. When they have need to exchange currency online, FOREX is the number one place to do it.

There are two basic reasons to do your online currency trading with FOREX. First and foremost, FOREX trading is done to make a profit. Depending on the market, a bank, corporation, or individual can make a windfall profit through FOREX trading. Another reason to do currency trading is to get into a secured position by eliminating trading risks arising from foreign exchange rate movement. In other words, FOREX online trading can help a bank, corporation, or individual to weather changes in foreign exchange rates by already having the foreign currency they need on hand.

FOREX is unique in terms of trading exchanges. Rather than the typical exchange like Wall Street or the Tokyo Exchange, FOREX is an entirely digital foreign currency exchange system. The rate of foreign exchange changes so quickly that traders must be able to react to market shifts within seconds. Online FOREX trading makes this possible by eliminating the classic stock broker. Rather than trading telephone calls and trying to catch a great deal by shouting and waving papers, FOREX trading is accomplished with a touch of a button on the computer.

The ease of online FOREX trading appeals to many, both businesses and individuals alike. All the information one needs to get started with FOREX trading is available online. FOREX exchange rates are continually updated on many websites. It is simple to buy one currency when it is low and sell it when it is high. However, what goes up can also come down, and new traders on the FOREX online markets must be prepared for losses. Still, despite the risks, more and more people are participating in online FOREX trading every day.

Keeping updated with the world market is the best way to prevent losses with currency trading. Learning which countries are experiencing economic growth or recession is essential to make the best currency trading decisions. It is always good to invest in currency from nations who are experiencing growth. Likewise, avoiding countries that are historically unstable or are experiencing war or international economic sanctions is only wise. FOREX online trading is not for everyone, but with some knowledge and skill, it can be very lucrative.