Before joining ANY FOREX trading, you must have a basis clear understanding of how it function ,how it work.Forex turnover up to trillion dollar per day. If you're wish to earn money from this trillion dollar business ,you got to know how the market functions.
The fact is even without the assistance of a professional,you can gain from forex if you know the trick and the law of investing on forex.
From day-to-day,hour to hour ,minute to minute,there are up and down on the rates . It's like a gambling but better than gambling.It involve your own money.You will need to understand what you are doing.Anyway don't worry too much about what the wining and losing at the very beginning .
There are some great resources out there on the internet as well. Start noticing the real expert around you.Learn the way they invest .But you should beware those scam forex expert who teach you how to earn money from forex. Most of the time.They made more money from selling crap that forex trade.
Written By http://earningsource.blogspot.com/
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Pro's of Foreign Exchange trading
Below are a list of the positive aspects of learning Foreign Exchange trading (from babypips.com)
- You are your own boss!
- You don't need employees!
- You don't need any customers!
You never need to worry about employer payroll, strikes, theft, rent increases, health inspectors, lease problems, being sued, etc…You don't need to do any cold calling.There is no working day nor holiday .You decide which days you wish to work. Anytime You make the decision to take a vacation at a moment's notice.
What is Forex?
"Forex" is Foreign Exchange.The beginner investor could be forgiven for thinking that it's some kind a complicated things. It's the world of money game .The currency ratesp goes up and down in matter of second .You can make big money but at the same you might loss big money.That's why I thought it's very important to know how you trade.
The market is in place so that currencies can be quickly and easily exchanged for one another in order to ease in transactions between countries who operate on varying currencies.
The market is in place so that currencies can be quickly and easily exchanged for one another in order to ease in transactions between countries who operate on varying currencies.
So how these foreign exchange things work? Let's do an example: if you were to Travel from The US to Europe you would need to exchange your US dollars to Euros.
How do you do this? You enter the forex market and exchange your currency at the going rate. Every Day over $2 trillion ($2,000,000,000,000) is exchanged in the market. This is 3 times all the stocks and future contracts exchanged worldwide on a given day or 80 times the dollar volume of the NASDAQ.
How do you do this? You enter the forex market and exchange your currency at the going rate. Every Day over $2 trillion ($2,000,000,000,000) is exchanged in the market. This is 3 times all the stocks and future contracts exchanged worldwide on a given day or 80 times the dollar volume of the NASDAQ.
What determines the Exchange Rates and how does it work?
Generally In almost all cases, the exchange rate of a currency versus other currencies is a direct reflection of the condition of that country's economy, compared to the other countries' economies.
For instant ,if the US Economy just released statistic showing it has grown at a faster pace than predicted, then the USD (Us Dollar) will go up in relation to the other currencies on the market. Meaning,the underlying cause of a price change just like any other free opened market.It determined by the law of supply and demand. If supply of the USD is lower than it's demand at the current price, then the USD will increase in value.
However ,unlike other large markets ,like the share market NASDAQ, the forex market is opened 24/7 365 days out of the year,there is no holiday on the money market, making it even more hectic to follow if you have an open position.
Forex Currency symbols
You might notice this,it printed on the money that we use every days.The symbol of $$.At the currency market, each currency has its own 3 letter symbol as well as a nickname. Here is a list of the more frequently traded currencies:
Symbol, Currency, Nickname:
- USD - US Dollar - Buck
- EUR - Euro - Fiber
- JPY - Yen - Yen
- GBP - Pound - Cable
- CHF - Franc - Swissy
- CAD - Canadian Dollar - Loonie
- AUD - Australian Dollar - Aussie
- NZD - New Zealand Dollar - Kiwi
For a list of all the other Currency symbols as well as other Forex related symbols visit: http://www.forextraderonline.com/symbolGuide.htm
How To Start An online currency tradingAn online currency trading (a "micro account")is needed in order to trade. It may be opened for with a hundred to couple hundred-dollar depends on where you open it. There are many agents all over the internet offer the service.
You don't need to be US to trade "money".There are several US companies provide service over sea. For example, "Forex.com", "FCXM.com" and "e-trade".
You don't need to be US to trade "money".There are several US companies provide service over sea. For example, "Forex.com", "FCXM.com" and "e-trade".
Most agents offer free trail or as low as $100 get started. Micro accounts and the mini account, are both great ways to get your feet wet without drowning.
We'd recommend you learn before you invest more money in it.However in order to earn more money from forex you will need at least $1,000 to start, we'd recommend at least $10,000 if you plan to make serious money from forex..
We'd recommend you learn before you invest more money in it.However in order to earn more money from forex you will need at least $1,000 to start, we'd recommend at least $10,000 if you plan to make serious money from forex..
How to understand those an FX Quote
Currencies are always quoted in pairs, such as GBP/USD or USD/JPY. The reason they are quoted in pairs is because in every foreign exchange transaction you are simultaneously buying one currency and selling another. Here is an example of a foreign exchange rate for the British pound versus the U.S. dollar:
GBP/USD = 1.6500
The slash "/" is known as the base currency (in this example, the British pound), while the second one on the right is called the counter or quote currency (in this example, the U.S. dollar).
When buying, the exchange rate tells you how much you have to pay in units of the quote currency to buy one unit of the base currency. In the example above, you have to pay 1.6500 U.S. dollar to buy 1 British pound.
When selling, the exchange rate tells you how many units of the quote currency you get for selling one unit of the base currency. In the example above, you will receive 1.6500 U.S. dollars when you sell 1 British pound.
The base currency is the "basis" for the buy or the sell. If you buy EUR/USD this simply means that you are buying the base currency and simultaneously selling the quote currency.
You would buy the pair if you believe the base currency will appreciate (go up) relative to the quote currency. You would sell the pair if you think the base currency will depreciate (go down) relative to the quote currency.
You would buy the pair if you believe the base currency will appreciate (go up) relative to the quote currency. You would sell the pair if you think the base currency will depreciate (go down) relative to the quote currency.
Long Vs. Short Positions
-If you wish to buy a position, meaning you buy the base currency, and sell the quote currency, this would be considered going Long
-If you wish to buy a position, meaning you buy the base currency, and sell the quote currency, this would be considered going Long
-If you wish to sell a position, meaning you want the base currency to fall in relation to the quote currency so you can later buy it back, this would be considered going Short.
Bid/Ask Spread
The bid is the price in which the dealer is willing to buy the base currency in exchange for the quote currency. This means the bid is the price at which you (as the trader) will sell.The ask is the price at which the dealer will sell the base currency in exchange for the quote currency. This means the ask is the price at which you will buy.
All Forex quotes include a two-way price, the bid and ask. The bid is always lower than the ask price.The difference between the bid and the ask price is popularly known as the spread.It's all about decide whether to buy or sell a specific currency pair.
If you always fell asleep during your economics class or just flat out skipped economics class,well you better wake up.It's real money gambling out there.Timing is extremely important.
All Forex quotes include a two-way price, the bid and ask. The bid is always lower than the ask price.The difference between the bid and the ask price is popularly known as the spread.It's all about decide whether to buy or sell a specific currency pair.
If you always fell asleep during your economics class or just flat out skipped economics class,well you better wake up.It's real money gambling out there.Timing is extremely important.
You need to know the global economy trend as well.For instant:If you believe that the US economy is strong and the euro will weaken against the US dollar you would execute a SELL EUR/USD order. By doing so you have sold Euros in the expectation that they will fall versus the US dollar.USD/JPY
In this example the US dollar is the base currency and thus the "basis" for the buy/sell.
If you think that the Japanese government is going to weaken the Yen in order to help its export industry, you would execute a BUY USD/JPY order. By doing so you have bought U.S dollars in the expectation that they will rise versus the Japanese yen.
If you believe that Japanese investors are pulling money out of U.S. financial markets and converting all their U.S. dollars back to Yen, and this will hurt the US dollar, you would execute a SELL USD/JPY order. By doing so you have sold U.S dollars in the expectation that they will depreciate against the Japanese yen.
It's a long long way to go.To become a successful trader, you must always incorporate any types of analysis.
List of Resources,Information and News all Forex Traders should have:
- http://www.forexnews.com - Everything you need to know about the current events in the Forex world
- http://www.dailyfx.com - Up to the minute forex breaking news
- http://www.forex-sam.com - Filled with tons of information graphs, charts and analysis
- http://www.finotec.com/en/Archive/today - Finotec Daily Forex News and Analysis
- http://www.forex.com - Up to date news as well as a free practice trading account
- http://www.forexblog.org - One of the top Forex trading blogs updated daily
- http://babypips.com - Free forex course for all levels of understanding
- http://www.investica.co.uk - Global currency market analysis, including daily strategic reports, weekly analysis, market commentary and hedging recommendations.
- http://www.fx-charts.com - Free forex trend signal charts for the 4 major currency pairs, updated on a min basis, free forex forum, trading tools for short term forex traders and trading learning centre.
- http://www.e-forex.ro - Free Trading signals
- http://www.forexmentor.com/blog - Peter Bains professional Forex blog
- http://forexadvice.eu - Packed with great Forex information and tips
- http://www.forex-daytrading-systems.com - Site dedicated to Forex trading systems
- http://www.dailyfx.com - Up to the minute forex breaking news
- http://www.forex-sam.com - Filled with tons of information graphs, charts and analysis
- http://www.finotec.com/en/Archive/today - Finotec Daily Forex News and Analysis
- http://www.forex.com - Up to date news as well as a free practice trading account
- http://www.forexblog.org - One of the top Forex trading blogs updated daily
- http://babypips.com - Free forex course for all levels of understanding
- http://www.investica.co.uk - Global currency market analysis, including daily strategic reports, weekly analysis, market commentary and hedging recommendations.
- http://www.fx-charts.com - Free forex trend signal charts for the 4 major currency pairs, updated on a min basis, free forex forum, trading tools for short term forex traders and trading learning centre.
- http://www.e-forex.ro - Free Trading signals
- http://www.forexmentor.com/blog - Peter Bains professional Forex blog
- http://forexadvice.eu - Packed with great Forex information and tips
- http://www.forex-daytrading-systems.com - Site dedicated to Forex trading systems
Forex Tools:
- http://www.babypips.com/tools/economic-calendar - The Forex calendar.
- http://www.oanda.com/products/fxmath - A bunch of Forex related calculators
- http://www.babypips.com/forexpedia/index.php/Main_Page - The Forexpedia. Every term and word you ever need to know about Forex
- http://fxtrade.oanda.com/spreads/SpreadCostCalc.shtml - Spread/Cost Calculator
- http://www.babypips.com/tools/economic-calendar - The Forex calendar.
- http://www.oanda.com/products/fxmath - A bunch of Forex related calculators
- http://www.babypips.com/forexpedia/index.php/Main_Page - The Forexpedia. Every term and word you ever need to know about Forex
- http://fxtrade.oanda.com/spreads/SpreadCostCalc.shtml - Spread/Cost Calculator
Forex Related Forums/Message Boards:
- http://www.forexfactory.com/forum.php - One of the busiest Forex related forums, with a lot of good systems
- http://www2.oanda.com/cgi-bin/msgboard/ultimatebb.cgi - Oanda's forex discussion
- http://forums.babypips.com - Baby Pips Forum, Learn forex trading
- http://www.piptrader.com/forum/default.asp - PipTrader forum
- http://www.commoditytrader.net/forex_forum.htm - Commodity Trader forums
- http://www.daytradingthemarkets.com - Different type of forum about Forex.
- http://www.moneytec.com/forums - MoneyTec Forums. Around since 1999
- http://www.forexfactory.com/forum.php - One of the busiest Forex related forums, with a lot of good systems
- http://www2.oanda.com/cgi-bin/msgboard/ultimatebb.cgi - Oanda's forex discussion
- http://forums.babypips.com - Baby Pips Forum, Learn forex trading
- http://www.piptrader.com/forum/default.asp - PipTrader forum
- http://www.commoditytrader.net/forex_forum.htm - Commodity Trader forums
- http://www.daytradingthemarkets.com - Different type of forum about Forex.
- http://www.moneytec.com/forums - MoneyTec Forums. Around since 1999
Brokers:
- http://www.apexforex.com - Commission free online Forex broker with free real-time charts, quotes and news and flexible contract sizes. Only 3 pip spreads and free 60 day real-time trading demo.
- http://www.brokers-search-engine.com - The largest online database of brokerage services.
- http://www.fxcm.com - One of the leaders in the industry
- http://www.fxsol.com - Forex Trading with FX Solutions offers online foreign exchange traders the advantage featuring low spreads, commission free 24/7 trading,
- http://www.apexforex.com - Commission free online Forex broker with free real-time charts, quotes and news and flexible contract sizes. Only 3 pip spreads and free 60 day real-time trading demo.
- http://www.brokers-search-engine.com - The largest online database of brokerage services.
- http://www.fxcm.com - One of the leaders in the industry
- http://www.fxsol.com - Forex Trading with FX Solutions offers online foreign exchange traders the advantage featuring low spreads, commission free 24/7 trading,
Other Resources:
- http://www.forex-bookstore.com - Forex Books you must read
- http://www.top100forexsites.com - List of the top forex related websites.
- http://www.forex-bookstore.com - Forex Books you must read
- http://www.top100forexsites.com - List of the top forex related websites.
Earn Money from forex sometimes very risky .Do your research before throwing your money in it.Learn it well ,it surely one of the best legitimate earning opportunity that can earn good money online.
