- فبراير 21st, 2011
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Forex :: the easy way to Learn Forex ::
If you are new to the forex market or have ‘dabbled your toes’ but with limited success, you might think forex is complicated market, where its difficult to make a profit.
In reality its pretty simple to learn forex and if you do your research and learn the ropes there is no reason why you shouldnt start making an attractive profit very soon.
Why should you learn forex?
learn forexThere is a lot of hype surrounding the forex market, but even when you look beyond the glossy marketing materials and ‘inflated promises’ the forex market is a fantastic opportunity for people with limited or no trading experience/skill and a small budget to make healthy profits.
There are thousands of ordinary people making $$$”s by trading forex….but there are also thousands of people losing money. These are the people that don’t take the time to ‘learn forex‘ properly. They jump straight in and start trading. This is a mistake, if you don’t do your research and learn forex correctly you’ll get burnt.
Learn Forex – The Essentials
Forex trading has is essentially trading on the rise and fall of foreign currencies in the foreign exchange market. Over $2.1 trillion US dollars of currency trades take place on a DAILY basis – its a truly massive market, with massive potential for savvy traders. Forex trading takes place 5 days a week, 24 hours a day and is a global marketplace.
When you learn forex you’ll see that as a forex trader you choose a pair of currencies that you think will change in value against each other. You make a trade on which currency will become stronger or weaker and be how much. For example lets say you buy $1000 Euros for $1200 USD in the morning, and in the evening, this changes to be $1000 Euros for $1300 US, then you can sell back your Euros and make a $100 profit.
The Secret Behind Forex – The Risk Level
Forex would just be another market, with a 3-10% return on investment every year, if it did not have that special trick: You leverage your money with broker’s ones and the cash you invest is simply a guarantee.
What does this mean? Let’s say you have $1000. You can choose to play with a risk level of 1, and thus playing with $1000, which is really boring. This means that if you buy Euros over USD, and Euros gain 5%, you will do $50.
Now you can increase you risk level, up to 1000! This means that with a risk level of 100 per example, if you have $1000, you invest in reality $100,000. The broker will buy for you 100,000$ worth of Euros. If you win, no problem, your investment is kept. If you loose, as soon as you have lost $1000 over your $100,000 investment, so 1%, the broker will sell the whole $100,000, to make sure he does not loose anything.
This can be risky of course. But if well done, can be EXTREMELY profitable. You capitalize over other’s people money!
Getting Started – Stage 1: Open a Forex Account..
The best way to learn forex is get started. Find a respected and trustworthy Forex Broker, one that caters for beginners and offers beginner friendly forex graphs, trading tips, online tutorials and encourages small trades as you get started.
Fund your account with a small amount, even as low as $100, and start by watching the markets and reading the various online tutorials. Then start by doing a few small trades. Don’t worry if you make a loss at first, this is part of the process. Learn forex through your mistakes and keep studying the market trends – trust your instincts and develop a pattern and soon you’ll be earning $$$’s.
Generally we would advise funding your account with real cash, rather than using a test account, as the research and our experience shows you make different decisions when its your money not just for fun. But start with a small amount, making small trades, until you feel confident enough to move in to larger amounts.
Now your ready to get started, enjoy and good luck – we’d love to hear your success stories!