Forex stands for Foreign Exchange, it is also known as “Retail forex”, “FX” , “Spot FX” and even just “Spot”. It is the largest and fastest growing financial market in the whole world with a daily volume of almost 3 trillion dollars, which means it’s 30 times higher than the turnover of all USA equity markets combined.
Forex trading has managed to remain hugely popular and successful as a means of making large amount of money for traders with the knowledge and experience to trade effectively.It works in a simple way! You only have to exchange foreign currency or buying one currency while selling another at exactly the same time and it is done by pairs for investment purposes. There are four major currency pairs usually used; Euro against US dollar, US dollar against Japanese yen, British pound against US dollar, and US dollar against Swiss franc. Take this as an example, 1 Japanese yen is worth 0.01 if converted in US dollar . Buy 10,000 Japanese yen worth 100 US Dollar. With the ever changing currency exchange rate, 1 Japanese yen will increase its value to $0.05 in just a short time . You will sell now your 10,000 Japanese yen and re-purchase the US dollar. The initial investment of $100 will now become $500. This is how forex trader works.
As we all know, every investment won’t return the profit we sought, and similarly, every potential investor may not have what it takes to be a Forex trader. If you have this feeling, then I recommend these guidelines that I will tell you.Remain faithful to it because this isn’t a matter of choice nor something where you only pick out your favorite tip. These guidelines serves as a journey to success if you followed it whole:
* Look for the best forex trader.When I say best, it’s not because they claim it but because it suits you most. Read reviews about them, get a trial demo and check if what they really want. Are they user friendly? Do they offer general features with unique features? What type of forex news system is inside their platform.
* Know the account options they offer? Are they to get only the veterans in their ranks or compensate the beginners with full features too? Know the service desk they offer.
* With the help of demo account, complete your research on foreign exchange. Always check your account when major Stock Exchanges open up . Make it a habit to read reports as they come up. Forex without forex news is just blind luck and no business would run on luck. Long term traders must do thorough research on everything that could affect the currency, like political conditions, economic policies, world-wide phenomenon, major deals and etc.
* What leverage offers you have from your forex trader? Are they the one who would cater your needs? Would it take care of you if you plan to go pro? What strategies and trade system you have?Using this strategies without understanding them won’t do you good in a long run because when you’re in a forex business, you’re in for a long term run.
* Make daily visits to some forex forums; a trade platform with chat option is good too . Learn new trends, find out a pro in the beginning, and try to gain as much as you can from him. They have experience that you don’t have. There is no end learning forex and if you can’t learn then forex isn’t for you.
* Beware of scams because nobody would tell you the truth and it is your duty to find it out. There is no Billionaire-Overnight system. Failure does not stop your journey towards success. Learn the bumpy ride and prevent them in the future.
* Be patient, be prepared .Losses and profits are part of everyday life. Learn from your mistakes and improve your trading system.
* Always invest your Risk-Capital.
Be responsible in life because it will surely teach you to make mature decisions in foreign exchange.
So these are the essential points you need to form into a forex-manifesto. If you are going to be a pro then learn to be a pro. Before you jump into forex trading consider what the environment you’re getting into. Forex is considered a risky investment, so approach with caution.
Be what it takes to be a Forex trader. Click here for more details on forexTags: business, finance, forex, general, Investing, misc, Miscellaneous, news, Uncategorized
January 31 2012 10:20 am | Uncategorized