by Jay Visaya
Forex is a term that a lot of people have been stumbling across recently. It is being seen in advertisements, promotions, and commercial businesses more and more often. So a lot of people are asking and wondering what exactly is Forex and why should we care?
Forex is a home based business that focuses on making money through the exchange of foreign currencies. This inter-bank market began in 1971 which is the time when exchange rates went from fixed to floating. The home based business is a bit tricky and will require the use of a broker company and trading software which will allow you to make money by buying and selling foreign currencies over the internet.
In order to begin working you must first open an account with a trustworthy broker. Money that you deposit in the account is then increased and decreased based on strategic moves you make in the market. At anytime you can take out your accumulated funds.
The act of trading currency occurs in pairs. First is the base currency and second is the quote currency. Against other currencies, these pairs are bought and sold. Commonly used pairs include the USD/JPY, GPD/USD, EUR/USD, and USD/CHF. All of which are abbreviations for a countries currency.
To make money in Forex, the goal is to buy the currency cheap and sell it at a more expensive price. This is how you can make a great profit. Good predictions of when money values will increase and decrease will allow you to gain a considerable amount of money.
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by Jay Visaya
In order to execute trades on the currency markets, you must first sign up with a forex trade provider, or a forex broker. To get the right broker for your needs, get all the information as this is a critical part in choosing.
Deciding and choosing the right forex broker is an important decision. People dealing with forex trading get help from their forex broker. Strategies used and reliability are some key aspects that can be influenced depending on the broker you select. Brokers can be found all over but be sure of frauds.
However smart youare in the forex trading, you should consider a few points when you go out to opt for a broker to deal with your currency trades. Here are some important points about the forex broker you should keep in mind.
Qualification is one of the most important things about a forex broker. To provide you with a legal security against scams, ensure that your broker is registered with the Commodity Futures Trading Commission (CFTC) as a Futures Commission Merchant (FCM).
Make sure to keep your funds separate from the brokeras operating fund. When you sign up to use brokers services you will have protection and insurance against any internal fraud. Know about the business model used by the broker you are working with.
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by Nayeem Syed
In trading courses I run, here are a few questions I encourage students to think about and answer. Once they answer these objectively, I help mould them robust through a back and forth email dialogue. I thought I would share them here for the benefit of our readers:
1) Why Do You Want To Trade? The obvious answer is to “make money” but the successful trader takes this a step ahead. Are you trying to get to a profit margin that will allow you to quit your day job and trade from home? Are you retired and want to stop touching your savings to live so you want to trade to make up for that? Are you trying to create wealth with long term positions while still enjoying your career outside of the markets? When students answer this question properly, it is easy for me to guide them into the right markets, time frames, and strategies.
2) What Is Your Strategy? This one is key. you must have a detailed strategy, I tell students to be as specific as they can. In other words: When exactly do you buy and sell? How exactly do you handle stops and targets and so on? From my experience, the more you can make market speculating 100% rule based, the better you will do. Even though I tell students to be very detailed here, I always end up adding rules they did not consider
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