Forex trading deals with currency trading in the Forex market. This is the largest market in the world and offers anyone the chance of becoming a successful currency trader with a little effort. The first step towards trading is to understand the basics governing the Forex market. This market’s volatility is based upon the appreciation and depreciation of one currency against another.
Trading is easy as speculators in the Forex market can trade anytime of the day or night on every weekday. It is made even more accessible and convenient as trading can be done online from any corner of the world. Online currency trading can be done by anyone who is able to invest a few hundred dollars. The secret of becoming a successful Forex trader is the work that you put into trading and gaining all the knowledge that is required for trading.
First, the trader has to accept the nature of the market and then formulate a plan of trading. You must be able to keep to this plan and trade with discipline and commitment. A trader who utilizes trading tools and enters and exits the market according to a plan can make profits easily. The ability to read charts and trendlines are important for a trader. In addition, he should also have the knack of reading between the lines when it comes to indicators in fundamental analysis. A trader has to practice trading with demo accounts, mini-accounts and then graduate to standard accounts so that he gains enough experience to trade currency.
The Forex market rewards traders for being right about their trading decisions. While all trade decisions are rarely right a trader should also learn how to deal with failure. A successful trader can be defined as a trader who was right more times than when he was wrong. If you make more money with your correct decisions than you lose with your wrong decisions you will become a successful Forex trader.
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30/04/11
Who Participates In Forex Market Trades?
Historically, trading in the Forex market was manipulated by very large stakeholders that took part in international trade. This included governments, banks, multi-national corporations and other such large financial institutions. Most of the trading that took place was for millions if not billions of dollars. The Forex arena was not a place that an average investor could even get close to.
All this changed with the advent of the Internet and technology revolutionized the Forex market so much it was almost unrecognizable from its former self. Trading currency was not limited to international trade alone and became a market where currencies were traded purely for profit and not just as a by product of payment for goods and services of one country by another. Technology made the entire process of trading currency more accessible to the average retail investor. A trader could trade from anywhere as long as he had a fast Internet connection, a good computer and a few hundred dollars to invest. Things became simplified to such a degree that small time investors literally swarmed the Forex market.
This had its own advantages such as high liquidity which in turn attracted even more traders to the Forex market. All that a trader has to do now is to find a good Forex broker, study the market and invest in currency trading. All this can be done from the comfort of your own home. Another advantage with Forex trading was that the market was accessible throughout the day for five and a half days a week. It only stopped on Saturday afternoon only to be resumed on Monday morning each week allowing ample time for trading to be done as there was no question of opening or closing the market.
The Forex market is not regulated by any central exchange unlike the stock index trading market. This is another factor that made it easier for small time traders to enter the market. They could find a market at any given time of the day open somewhere in the world that was willing to do business. As you can see, all these changes in the Forex market has made this market the largest on the earth with a daily turnover in excess of three trillion dollars each day. This will show you how many retail traders are engaged in Forex trading today in addition to the big time players who handle international trade.
Read more!
All this changed with the advent of the Internet and technology revolutionized the Forex market so much it was almost unrecognizable from its former self. Trading currency was not limited to international trade alone and became a market where currencies were traded purely for profit and not just as a by product of payment for goods and services of one country by another. Technology made the entire process of trading currency more accessible to the average retail investor. A trader could trade from anywhere as long as he had a fast Internet connection, a good computer and a few hundred dollars to invest. Things became simplified to such a degree that small time investors literally swarmed the Forex market.
This had its own advantages such as high liquidity which in turn attracted even more traders to the Forex market. All that a trader has to do now is to find a good Forex broker, study the market and invest in currency trading. All this can be done from the comfort of your own home. Another advantage with Forex trading was that the market was accessible throughout the day for five and a half days a week. It only stopped on Saturday afternoon only to be resumed on Monday morning each week allowing ample time for trading to be done as there was no question of opening or closing the market.
The Forex market is not regulated by any central exchange unlike the stock index trading market. This is another factor that made it easier for small time traders to enter the market. They could find a market at any given time of the day open somewhere in the world that was willing to do business. As you can see, all these changes in the Forex market has made this market the largest on the earth with a daily turnover in excess of three trillion dollars each day. This will show you how many retail traders are engaged in Forex trading today in addition to the big time players who handle international trade.
Read more!
What is Forex ?
Man has basically bartered and traded goods since time immemorial. The value of goods was expressed in terms of other goods and it is out of this that currencies were born. At first, the currencies were metals, colored feathers, pretty stones and animal teeth and later on silver and gold. Each country developed their currencies as time went by and came to have the modern paper currency as we know it today.
Most countries supported their currencies with gold reserves prior to World War 1. This gave way to a new order where the value of currencies was expressed in terms of US dollars and the price of gold. As trade between countries grew in leaps and bounds so did the exchange of currencies and this is how the Forex trading market came into being. Many countries around the world lifted restrictions against capital flow allowing currencies to adjust according to their perceived value. Currencies that were devalued against the US dollar were made vulnerable. The currency exchange environment became highly volatile and this opened up a new playing field for big time investors to profit from pitting one currency against another.
This is known as the Forex market today and it has gained in popularity among the masses as even small time investors are able to trade currencies via the Internet. The market trades currencies to the tune of three trillion dollars each day and has overtaken the entire world’s combined stocks and bonds markets.
Trading can be done from any corner of the world at any given time. The Forex market does not have a central exchange and is conducted in an over-the-counter manner. Trading can be between individuals conducted over the electronic media or over the telephone. The market is made up of the big time players such as governments and companies that require exchange of currencies stemming from trade and other traders who are mainly involved in speculative currency trading.
Read more!
Most countries supported their currencies with gold reserves prior to World War 1. This gave way to a new order where the value of currencies was expressed in terms of US dollars and the price of gold. As trade between countries grew in leaps and bounds so did the exchange of currencies and this is how the Forex trading market came into being. Many countries around the world lifted restrictions against capital flow allowing currencies to adjust according to their perceived value. Currencies that were devalued against the US dollar were made vulnerable. The currency exchange environment became highly volatile and this opened up a new playing field for big time investors to profit from pitting one currency against another.
This is known as the Forex market today and it has gained in popularity among the masses as even small time investors are able to trade currencies via the Internet. The market trades currencies to the tune of three trillion dollars each day and has overtaken the entire world’s combined stocks and bonds markets.
Trading can be done from any corner of the world at any given time. The Forex market does not have a central exchange and is conducted in an over-the-counter manner. Trading can be between individuals conducted over the electronic media or over the telephone. The market is made up of the big time players such as governments and companies that require exchange of currencies stemming from trade and other traders who are mainly involved in speculative currency trading.
Read more!
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