What is Forex Trading? Can YOU Make Lots Of Money With Forex?
What is Forex.
There are numerous different terms for the forex market. Forex and fx are both abbreviated ways of saying ‘foreign exchange’. It is also referred to as the currency market, the foreign currency market, the currency trading market, etc. All of these terms refer to the same international market on which the currencies of the world are exchanged and traded.
At its most basic level, think of when you have to travel abroad and you need to change your $’s into the currency of the country you are going to visit. For example. If you were going to travel to England you would need to change your hard earned dollars into pounds. In forex this trade is referred to as Gbp – the great british pound. The exchange rate as of today as I am writing this article (27th June 2009) is 0.60, therefore, $1 will buy you 60 english pennies. (100 pence makes a British pound).
In the forex market currencies are bought & sold just like any other commodity; coffee, steel, coal etc.
The value of a currency is, in a sense, the value of the nation whose currency it is. Just like companies on the stock market. If a nation is successful the value of its currency increases and if it is going though a crisis the value drops.
These fluctuations can be great and can happen very fast on a daily basis. The sums involved can be huge too. the forex market is estimated to exchange $2 trillion per day ! It is these daily fluctuations that we aim to take advantage of as a Forex trader.
We do this via a forex broker, from whom you can download (free of charge) a very sophisticated trading platform (think of the screens you see the guys sat at on any news clip of a wall street trader). Why would a broker be willing to “give” you such a fabulous piece of software at no cost ? Because 90%+ of new forex traders will lose money !
Presuming you are one of the 10% who learn how to trade forex properly,
How does Forex Trading work. Do You need to have lots of money ?
No, because your account with the broker is leveraged. You can open an account with a forex broker these days with a few $100. Before the birth of the internet and downloadable platforms, the minimum amount you would have needed to trade the fx markets would have been nearer to a million dollars.
When you trade the currency markets you are gaining or losing 1000th of a cent, or pips. That doesn’t equate to very much. A currency has to move 100 pips to make your $10 trade $10.01. It would take you a very long time to make any money doing it this way. Brokers will provide you “leverage” to increase the dollar size of your trade. A 100:1 leverage will increase your trade size 100 times. Your $10 trade now becomes a $1,000 trade in the market. Now you’re 100 pip gain is worth 100 times as much as it would be without the leverage.
The flip side of this of course is that your losses will be multiplied 100 fold. It is vital that you learn the basics of the forex market, before opening your wallet. You can, and I strongly recommend that you do, download a free metatrader 4 trading platform from any forex broker (just google it) and open a DEMO account. Here you can play with up to $50.000 and not lose a dime.
As Warren Buffet famously stated, ” Never invest in a business that you don’t understand”.
Where can you learn to trade forex for free ?
I have written a number of articles for beginners (parts of them should be interesting for intermediate traders too). This free advice will give you the basic idea of how to trade the forex markets. You may decide that its not for you. In which case, you have hopefully learned something new & it hasn’t cost you a penny.
If, having read my mini course you wish to take your interest further I will give free, HONEST advice of where to go next (there are lots of courses out there costing many $1000’s – I paid $3000+ 5 years ago).
The best that I have found recently cost $70 !! Check out my free forex training course here;
http://www.forex-fxtrader.com/blog/free-fx-training/
Also you can see the video related to free forex training
products you receive as an IBO give YOU success training found nowhere else! 4. GAP is a GIVING System: The commission model is unique and is based on the concept of giving back to those who help you succeed. The corporate structure of the company also gives 10% of all corporate profits to bring hope to a world in need. Are you ready to learn more about this exciting business designed to transform the home-based business industry? Take a complete tour of our website so you will understand …
Here some answer the question about free forex training
About Author
My name is Marc. I semi retired aged 42 and emigrated with my young family to the canary Islands. I Have been trading forex for a living for the last 5 years. The 1st three years I lost over $20.000. I now make a very good living from forex. For free tips, lessons & advice, check out my blog http://www.forex-fxtrader.com/blog/
Tags: analysis, best, currency, daytrading, demo, dollar, download, etoro, finance, financial, forex, fx, game, learn, Market, money, platform, software, spot, Strategy, trade, Trader, trading, training
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May 28th, 2009 at 11:02 pm
you should read reviews about forex auto trading software and what their offer!
http://best-forex-auto-robots.blogspot.com/
personally I use FAPturbo! it satisfies my requirements and profits !
May 28th, 2009 at 11:26 pm
why not do forex automated trading and manual trading? just open up a seperate account for the forex robot and let it do its magic. I assure you that you will decide to trade automated if you use the fap turbo robot. it makes some very good profitable trades daily. trust me. Forex automated trading is the way to go if want some fast and easy cash. If you need a forex robot I highly reccomend fap turbo. its available at http://forexautoprofitbot.com
May 28th, 2009 at 11:00 pm
Good stuff here buddy. It seems like you can take a short cut and HOPE to get it right, or take the long way and KNOW youll get it right. Anyway, to learn how a Real Guru makes 5 figures a day (yes with proof) check out the featured video on my channel by clicking on my username tonyhuaguru and I think you’ll find it helpful. Keep up it! Great stuff once again!
May 29th, 2009 at 12:05 am
If you are looking for an opportunity, I would hesitate to consider one where a distributor portrays his position as an independant critic of the program to prove it’s not a scam. Remember, you will have to do what they’re doing to be successful. Can you do that? GAP may be legitimate, but I have never met a retired multi level marketeer. It doesn’t exist. You may can make it here but you can’t serve two masters. You have to devote full time to whatever you’re doing to make it successful.
May 29th, 2009 at 8:15 am
Hi my trading friend !
I am a professional trader and have been for many years. I despair at the systems I see on the internet as 99.9% of them are nothing but money-making systems for the sellers of the system rather than making money for you !
I would recommend you do three things to improve your trading:
1. Study FREE trading systems currently being used by lots of REAL traders here: http://www.forexfactory.com/forumdisplay.php?f=71
2. Avoid all the Scam systems out there by checking Forex systems rated by actual buyers of Forex systems here: http://www.forexpeacearmy.com/public/forex_software_reviews
3. When you do come across a trading system you want to try out, always trade it without real money for at least a month. You don't need any fancy software to Demo trade, simply nott down your trades on paper and keep a record of the win amounts and loss amounts to see if your latest system is profitable or not.
Finally, I have a Free little Forex tool that can be helpful and you can have that for no payment at all my friend. That link is below…
Forex Traders Toolbar
http://www.its-cool.co.uk/
I wish you great success my friend !
May 29th, 2009 at 4:11 pm
May 30th, 2009 at 7:07 am
Here is an excellent site with some wonderful options 4 U. Check it out……..
http://lnk.in/4sk8
May 31st, 2009 at 3:27 am
Buy AUD. It's undervalued and for the past 2 weeks it's been fluctuating betweeen a few percent each time (eg. AUD/SGD has gone between .96-1.0 about every 2 days. Buy around .97 and sell at 1.0: if it's $100,000 you're making 3% at least every 2 days. AUD's been fluctuating in the same direction as the world's stocks, so if you see the markets rally after this weekend's G20 meeting you'll see AUD rally, then confidence will fall soon after (usually within a day) and the markets & AUD fall too.
I've placed my order for .94 to test if it really falls that low, but it's unlikely so I'll buy as high as .97 if there's not enough downward pressure.
May 31st, 2009 at 12:09 pm
Generally I find that people who make a good living from forex won't write a good book on forex or do seminars. They might write some short reports on their secrets or develop some software that they feel is revolutionary.
Being successful, I guess they don't have the time or the motivation as a normal writer or educator. However, I found that some of these reports by the successful traders are more useful than a basic book on forex. They go to the point of what matters, ie making successful trades rather than theory.
May 31st, 2009 at 12:58 pm
being the CEO of something i would of though your Ethics would have been better than this
make your own video like GAP have done and then you get to explain what you want don’t try and steal someone else’s thunder. poor effort an
May 31st, 2009 at 10:27 pm
The fine print sez
YOUR RESULTS MAY VARY….
or something
Sounds like a cleaver sales pitch and you fell for it…. oops!
and as we all know
the emperor is NAKED!
.
May 31st, 2009 at 9:58 pm
great video I can’t wait to join goldmine with you!
June 1st, 2009 at 2:28 am
Thats why I like my program, because 1. Its Free, and 2. Your selling a very worthy program produced by Jack Canfield, Bob Proctor, and Michael Beckwith.
June 1st, 2009 at 7:29 am
uber gay, if u fall for this u will lose ur house every1 on this page supporting this are employees, why else would the dude who claims he’s the CEO write a messege on this? ill make a gap video with a funny youtube poop and charge him to make stuff in it supporting GAP, thats the only part of this thats not a scam. some random dude promoting it sponsored by the company.