History of Trading the Forex Market

Share This: A History of Trading the Forex Market   A History of Forex TradingForex currency trading has made massive advancements over recent years and is becoming on the Internets most searched for trading opportunities. Technological advancements have made Forex an opportunity to make money for everyone from small individual speculators to large multi-national companies. In reality the principles of Forex trade have existed for centuries but it wasn’t until 1967 when the idea of a global system of currency exchange first began to be put together. A college professor named Milton Friedman famously wanted to take a bank loan in Pounds Sterling (feeling that the currency was overpriced against the dollar) and then sell it before buying it back once the price against the dollar had fallen. This would allow him to repay the bank and pocket a nice profit for himself. His loan application was declined due to the bretton woods agreement that was in place at the time but this set the wheels in motion for worldwide Forex trading. The Birth of the Foreign Currency Exchange In 1971 when floating exchange rates began to materialize and the bretton woods agreement was abandoned, the foreign currency exchange market was born. This advancement was welcomed with open arms by the International companies who had often noticed big profit changes both positive and negative simply based on the value of their native currency against the value of the currencies in the markets in which they traded their day to business activities. These companies would see fluctuating exchange rates effect their profit and loss accounts, often with millions being made or lost simply on the value of one currency against another. It was also these companies that were first to spot the huge money making opportunity currency fluctuations offered and these same companies were the first to leap on to the Forex trading bandwagon and attempt to increase their profit margins through brave yet profitable currency exchange decisions. Forex Currency Trading Online Online Forex Trading Advances Of course when Forex first began the Internet was a distant dream and therefore trading was carried out exclusively by the cash rich worldwide organizations. These were companies who could afford to throw a few million in to the mix in an attempt to make some big money trading currencies. Trading was carried out over the telephone via several exchange centers all over the world. A trader would monitor global activity and then ring their broker in order to commence or complete a trade order. The transfer of funds to complete trades was done through bank transfers which often took a few days to go through. This meant that whilst the Forex market offered a fantastic earning opportunity, trading was both time consuming and a hassle. With the advent and then increasing popularity of the Internet, Forex trading online opened up the doors to millions of people who had never previously had the […]

Forex Trading Offers Huge Earning Potential

Share This: Forex is the best money making opportunity in the world of trading. Forex Trading Offers Huge Earning Potential Forex currency exchange trading is one of the fastest growing trade markets in the world. It is also the biggest with an estimated 1.8 trillion dollars being exchanged every single day. With these stats to it’s name it should come as no surprise that one of the major reasons for this exponential growth is the fact that Forex trading offers incredible earning potential. This is also why large multi-national corporations have been investing in foreign exchange for years and more and more individuals are utilizing currency trading to supplement their incomes and some are even living purely off the profits they make. Incredible Forex Leverage Ratios So why does Forex trading offer such incredible earning potential? Well firstly the currency exchange market operates through brokers who offer some significant leverage ratios to their traders. For example, you decide to purchase 10,000 US Dollars against Japanese Yen at 125.00. Next day you sell 10,000 US dollars and buy Yen at 126.00 making a profit of approximately $79. To fund this position you need a deposit of $100 not $10,000 since the rest of the amount is leveraged to you by your Forex broker. If you were to try and trade without any form of leverage you would make very minimal profits and it would not be worth your time trading. This is the beauty of Forex trading, any individual trader, no matter what their starting capital, canexperience the thrill ride of trading large amounts of currency and making big profits without depositing thousands of dollars. Massive Earning Potential Another factor that lends itself favorably to the earning potential of Forex trading is the fact that the market is open 24 hours a day. As one market is closing another is opening, Forex literally follows the sun around the earth – where the sun is shining the Forex is trading! This means you can bemaking profit 24 hours a day on Forex, particularly if you make use of an automated trading system. The speed at which things change in Forex is also a major factor behind why currency exchange can be so profitable. Barely a second goes by without currency changing in value. Unlike stocks are shares where you can be sitting on a trade for month, even years, waiting for the price to move favorably, currencies can make you a substantial profit within minutes or even seconds of you commencing a trade. There are also no expensive commission fees to pay anyone in Forex. Brokers make their money from the difference between the buy and sell price of a currency. This means you never need to concern yourself with the thought that you will lose some of your profits to your broker – whatever you earn you can keep!   Stop-Loss Functions for Safer Currency Trading The stop-loss functions of Forex trading platforms will also help you tomake huge profits trading currencies. These work by you pre-setting an entry and exit point you are happy to complete a trade at. For example, you know the […]

Thinking About Trading On The Forex Market?

Share This: Thinking About Trading On The Forex Market? Many people say that trading forex can be a very difficult endeavor, but that is only true if you don’t have the proper education or aren’t properly informed. Like anything, you need to know the right steps to trade forex in order to be successful. This article contains a number of tips that will help you on your way to trading forex. Examine other trading systems, and use them to build your own. If you find that most systems in place are not ones you want to use, you can pick pieces that you like from each one to create your own system. For some traders, this can take years, but a healthy profit gain is worth the time. When devising your Forex trading strategy, do not make it overly complex. Too much complexity in your strategy will mean that there will be many more factors that you will need to keep track of. For the same reason, there will be more things that can go wrong. Do not underestimate the value of a simple strategy. With a simple strategy, you can easily see what is working and what is not working. You need to keep up to date with the market: make sure you read about the current situation everyday. Finding information can be hard because a simple internet search brings up so many results and you might not know which websites to trust. You should visit Bloomberg, Reuters or Hoover’s websites for reliable information. When you are trading Forex, it is important to remember not to be impulsive when making decisions. Impulsive Forex traders will sometimes make decisions based on their emotions instead of using proper analysis. Using this technique reduces Forex trading to a game and will decrease your likelihood of succeeding in Forex trading. Have patience to wait for the right trade and to stick with a position that is profitable. Although it is not wise to stay in a winning position too long, it is equally unwise to pull out too early. In addition, taking time to wait for the right trade can avoid unnecessary losses. Don’t use your rent money to trade forex. The forex markets are ever-changing and not a good place to invest if you have no other money available. Save your rent money and only invest if you’ve got the extra cash to do so. Desperate trading will only cause you to lose money, anyway. When trading, try to avoid placing protective stops on numbers that are obviously round. When you do have to place a stop, make sure to put it below those round numbers and on short positions instead. Round numbers include 10, 20, 35, 40, 55, 60, 100, etc. As was stated at the beginning of the article, trading forex can seem difficult and intimidating, but is much easier to do if you are equipped with the best knowledge and information. If you know the right steps to trade […]

FOREX Trading

Share This: FOREX Trading A lot of individuals are interested to know more about FOREX trading. Do you want to know why? Well, Forex trading can help you earn lots of money as long as you have the right strategies and trading information. However, with one false move, you can also lose huge money. To be a successful trader, you need to be serious with all your trading transactions. Exchanges in the Forex market happen instantaneously. Even the expert traders and bankers are challenged to make very good and well-informed trades. A single Forex trade should be done after carefully considering some factors. Before, only the world’s largest banks were allowed to trade openly. Things have changed greatly since the introduction of the internet. If you have an internet connection, you can already join in Forex trading. Many people are now actively involved in Forex trading because the market is very liquid. According to the expert traders, it’s easy to trade in the Forex market but for the newbies, it may be a bit difficult. You see, there are some things that you need to consider. Many traders lose their capital and according to statistics, these traders make up 90% of the total number of traders in the Forex market. The other 10% is still split into two wherein the 5% are the breakeven traders and other 5% are those traders that attain beneficial results. The percentage of successful Forex traders is indeed very small as compared to the unsuccessful ones; because of this fact, many individuals are scared to invest in the Forex market. If you want to make huge profits, one way to do that is to join Forex trading. However, to consistently earn money, you have to improve the odds involved in trading. Education is vital if you want to succeed as a Forex trader. You should have adequate knowledge about the market and every detail you can learn is very important. You can also learn many things in Forex trading. In fact, in every transaction you make, you’re bound to learn something that you can use in your future exchanges. As a Forex trader, you should have your very own strategy or trading system. Many individuals find it difficult to follow rules and guidelines and if you’re like that, the Forex market is not the place for you. You must be very strict in following your devised strategies or trading system. This is the only way to earn more profits. Aside from having your own trading system and strategies, you should be able to analyze and study the price behavior in the Forex market. Prices tend to change rather quickly and so you need to be prepared at all times. Surprises in the Forex market is natural and you should be prepared for them. The buying or selling decisions of traders are often influenced by psychological issues. Not all traders are rationally thinking in every transaction they make and you can use this knowledge to your […]

Financial Freedom Through Forex Trading

Share This: 5 Things You Must Do If You Want To Attain Financial Freedom Through Forex Trading With the amazing growth of the forex market, you are going to see an astounding amount of traders lose all their money. Unfortunately, they haven’t followed the simple steps I have laid out for you. Go through these steps and give yourself the greatest opportunity to achieve your goals. 1. Have Faith In Yourself To reach the level of elite forex trader, you must trust in yourself and your forex trading education. You must be willing to make all your trading decisions, instead of relying on someone else’s thoughts or ability (or lack of). Of course, you will prepare yourself fully before every risking any money. 2. Accept Your Learning Curve Unless you are a veteran trader, you will lose money trading the Forex market. This is a near certainty. I don’t say this to talk you out of trading. In fact, quite the opposite. You will be trading against others that fall to this reality day in and day out. You, however, will not risk a dime until you have learned the skills you need to make money trading the forex. 3. Decide What Type of Trader You Are There are many ways to trade the forex. They range from very active to very patient. You must decide which style suits you best. The best time to learn this about yourself is while you are trading a demo account. There is no need to allow your learning curve to cost you money. 4. Get Educated Education is the shortest path to elite forex trading. Regardless of your ultimate goals, you will reach them quicker with a great forex trading education. Take some time to review different options before deciding on who to trust with your forex trading education needs. A forex seminar will help shorten your learning curve drastically. 5. Continue to Get Educated In order to achieve and retain elite forex trading skills, you must constantly be adding to you knowledge base. Your education should never end. In fact, one of the key points to look for in an elite forex trading course is ongoing education. It’s nice to have an ongoing relationship with the person/people helping you to achieve your goals. What separates an elite forex trader from all others is their desire and ability to be independent. Many traders are willing to follow signals, systems, strategies, or anything else you may call them. By taking this approach, however, these traders are only as good as the people they follow. An elite forex trader will lead. Their decisions will be calculated and analyzed to near perfection. They will make decisions with no hesitation, and handle the growth of their account in a predetermined, intelligent fashion. Take your trading to their level and you will never look back.