What is Forex Trading and is it for me?

What is Forex Trading and is it for me?

Forex trading is the largest financial market in the world
exceeding $2 Trillion a day and can be an extremely
lucrative, yet volatile and risky market. Trading is not
only available to large investors but smaller transactions
are available to allow traders to take part in trading and
profit from various online Forex Trading Systems. The word
is derived from a combination of two words, foreign and
exchange

The speculative art of Forex Trading is just like investing
in other things such as stocks, houses etc apart from it is
putting your money into different currencies. The Forex
market is always done in currency pairs with the first
currency being the base currency and the second currency
being the quote or counter currency. There are actually a
lot of different currency pairs, but there are only four
main ones that are regularly traded.

These are Euro/US Dollar (EUR/USD) and US Dollar/Japanese Yen (USD/JPY),
British Pound/US Dollar (GBP/USD) and US Dollar/Swiss Franc
(USD/CHF). The whole process is about putting your money
into a different currency for a period of time so that you
can get the interest for the period of time that you hold
the other currency.

You will often hear that Forex is traded on a margin. All
this actually means is that you purchase a lot or a mini lot
i.e. a set amount of a single currency but only actually put
a deposit on that purchase.

It is a very interesting method of trading simply because it
allows people from all over the world the chance to trade
and strike it rich in a market that has untold liquidity.

However it is a serious business and it is vitally important
that you are properly educated and informed before
committing your hard-earned money to the markets. Forex
trading is a difficult concept to grasp, but it has a lot of
going for it once you have grasped the concept.

Becoming a Forex Trader can be very enjoyable but is also
very stressful when markets are moving quickly. However, if
done right, the rewards can be outstanding. Also, given that
the trading platform is around the world, and you can sell
to make profits as well as buy to make profits, you can make
money regardless of whether a currency is falling in price
or gaining in price as long as you pick the correct
direction. Forex trading is merely a global market that
operates 6 days a week, 24 hours a day.

Trading on the Forex markets does take a lot of practice but
this can easily be picked up by anyone with enough training.
Although it may take some longer than others to learn, it
can be very profitable once you know how to do it right.


Before embarking on trying to trade on the Forex
marketplace, you will need to take several months
researching how to trade. During this time you will need to
watch the market and make sure you understand fully what is
happening any why. Once you feel comfortable that you can
understand what is going on, and then you should go ahead
and do some practice trading with one of the many
demonstration systems out there, using practice accounts so
you will not have to risk any real money until you are
ready. A major pointer here is to remember that Forex
trading is high risk as well as high gain so you should only
use money that you can afford to lose once you try trading
for real. If you can only risk a small amount of money to
start, then mini Forex trading would be the suggested route.


As already mentioned, Forex trading is a high risk, high
gain business. When you first start to trade you will
undoubtedly make mistakes the same as everyone else starting
out. The key is to have nerves of steel and carry on trading
by learning from your mistakes. Eventually you will be able
to recognize the signals being fed back from the Forex
marketplace and be able to act upon these to minimize the
number of mistakes you make and also then minimize any
possible risk.


by Simon Tridull
Souces Ref:http://earningsource.blogspot.com/2007/08/credit-souces.html