Forex Trading-Is This Your Ticket To Financial Freedom And Personal Wealth?

Forex Trading - is this your ticket to financial freedom or abundant personal wealth? Can you become very rich trading in forex? Is forex trading made out to be more difficult than it is in real life?

But first, what is forex trading?

The investor's goal in Forex trading is to profit from foreign currency movements. Forex trading is a form of investing in currencies on the international markets.

Day by day, forex trading is becoming an increasingly popular income source. The forex trading is one of the most excited and lucrative business you can be involved during your lifetime because you can do it from home or office and from any country in the world and you do not need a big capital to start off with. Forex trading is not bound to any one floor but done electronically between a network of banks continuously over a 24 hour period. With newer forex products, including mini forex products, the entry level for a newbie to forex trading has been made much lower than in the past.

Is forex trading easy?

Forex trading is made easy by not designating it as a pure game of chance or luck- there are time proven strategies that you can adopt to secure your income for life by trading in forex. Forex trading is, however, a serious job and requires a lot of commitment. Forex trading is all about disipline, once you choose your trading system stick with it. The ability to cut your losses when they are small and to allow your profits to soar when the going is good is very important to you as a forex trader. This is, in fact, the secret behind profitable forex trading. This may be the most important tip in becoming a successful forex trader, and to gain your personal wealth.

While forex trading may be an exciting proposition, it is not without reasonable risks.
Forex trading is by nature a speculative occupation. As forex trading is never paused, which ensures true 24 hour trading, there is market volatility. Coupled with the ability to trade during virtually any important event, such trades can induce substantial market volatility leading to risks.

This has led to many treating forex trading as a market for day traders, because by getting in and out of trades within a very short period, you reduce the risks involved. You can also adopt time proven strategies including swing trading and position trading for forex, though forex trading has been largely made out to be a predominantly day trading market. In other words, by adopting established trading methods,whether day trading or swing trading the forex market, you can reduce your risk substantially while improving the chances of making money through established trading setups, trading strategies, trading systems and using the best trading platforms.

With the advent of cutting edge technology, delivering real time information and currency prices to your desktop via the internet, forex trading is now made available to the individual investor at very low cost, and sometimes for free.

Forex trading can be your ticket to a serious income. You can be a self employed full time forex trader in the comfort of your own home. What makes it more important to you is that you can accelerate your learning process to become a successful forex trader earning massive income by putting yourself under the mentorship of established forex traders, to pick their brains and adopt the winning strategies that have made millions for them.

To discover powerful professional trading secrets to help you create a 5 figure income trading forex in the comfort of your home, visit http://www.1forex-trading.blogspot.com

Article Source: http://EzineArticles.com/?expert=Peter_Lim

Forex Trading 101: Learning Guide for FX Beginners

New to FOREX trading? Don’t worry, getting started in FOREX trading is easy and you can always test your skills first in a demo account before you go ‘live’ with real money. To get started in FOREX trading, we have to get to know what FOREX is. For the inexperienced, FOREX trading involves buying and selling the different currencies of the world. A FOREX deal is made when one buys one currency and sells another at the same time. It is always traded in pairs, Euro/USD, CHF/USD, USD/JPY…you get ‘short’ in a currency every time to buy another and the profit is made when you buy-low and sell-high.

Facts on FOREX market

FOREX market is the largest trading market in the world. It yields an average turnover of $1.9 trillion daily and the figure is nearly 30 times larger than the total volume of equity trades in United States. FOREX trading is very unique as the trades are done between two counterparts via electronic network or telephone connections. There is no centralized location as stocks or futures markets and trades are done around the clock. Everyday FOREX trade begins when the financial centers in Sydney start their day, and moves around the globe to Tokyo, London, and then New York. Traders can always respond to the market regardless of the local time.

Although FOREX trading involves such a big volume of trades nowadays, it was not made available to the public until 1998. In the past, the FOREX market was not offered to small speculators or individual traders due to the large minimum business sizes and extremely strict financial requirements. At that time, only banks, big multi-national cooperation and major currency dealers were able to take advantage of the currency exchange market's extraordinary liquidity and strong trending nature of world's main currency exchange rates. Only until the late 90s, FOREX brokers are allowed to break huge sized inter-bank units into smaller units and offer these units to individual traders like you and me. Nowadays with the rapid growth of the Internet and communications technology, FOREX trading has become one of the hottest make-money-at-home-businesses for those who wish to avoid conventional 9-5 day jobs.

As a fact in FOREX trading, FOREX is mainly traded in large international banks. According to Wall Street Journal Europe, 73% of the trade volume is covered by the major ten. Deutsche Bank, topping the table, had covered 17% of the total currency trades; followed by UBS in the second and Citi Group in third; taking 12.5% and 7.5% of the market. Other large financial cooperation in the list is HSBC, Barclays, Merril Lynch, J. P. Morgan Chase, Coldman Sachs, ABN Amro, and Morgan Stanley. For market participants segment, approximately half of the transactions done were strictly between dealers (i.e. Bank, or large currency dealer); others are mainly between dealer and non financial institutions.

Why FOREX is popular?

There are several reasons why FOREX has become such a popular investment among world wide speculators.

In FOREX trading, you can always use technology for your own advantage. The FOREX market has made an amazing transformation since the advent of the internet. Technology has now made it possible for smaller investors to play on the same level as larger corporations and banks. Anyone with a computer and a will to succeed can start trading currencies from the privacy of their home or office. Online FOREX trading has changed the way that investors do business. With access to your portfolio 24-hours a day, it is really very simple to get started. You can choose whether to hire a professional to handle your transactions, or you could choose to do them yourself.

Also, FOREX trading provides relative large leverage rates to individual traders. FOREX traders can do business with up to 200 to 1 leverage rates. With this advantage, ROI is escalated dramatically and traders can always start up small with capital as little as $1,000.

Getting started in FOREX trading

You don’t need much to get started with FOREX trading. A computer with Internet access, a funded FOREX account with foreign currency exchange broker, and a trading system should be sufficient to get things started.

To reduce the risks of losing money, some basic charting knowledge is as well recommended before you start trading FOREX. FOREX charts assist the investor by providing a visual representation of exchange rate fluctuations. Many variables affect currency exchange rates, such as interest rates, bank policies, geopolitics, and even the time of day may affect exchange rates. As stated by expert FOREX trader Peter Bain, charting is an essential tool in FOREX trading. In his newsletter, he reveals that daily charts, hourly charts, and 15-minute charts are used while trading in FOREX. As quoted from his informative newsletter -- “Daily chart will help you define the overall trend from a position trading point-of-view, and the hourly (one hour) chart will give you a feel for the intraday trend. The 15-minute chart is used for entry and exit – with assistance from the five-minute chart, where price is moving quickly, and you need to be closer to the action.”

Being one of the technical method, FOREX charting is based on the principal ‘history repeats itself’. FOREX traders who study charts predict the market future by evaluating past market performance. The time frame used for charting might differs for different traders, some analyze the past one week, some prefer six months analysis, and there are also traders who analyze the market for the past five to ten years before getting involved in a FOREX trade. A huge variety of FOREX charts are available in the market. Some charting methods are very simple, using a few FOREX indicators to show trading direction; other charts may include up to forty indicators and those are mainly for advance traders that are more skillful. MACD Divergence, RSI, RSI range, and price are some of the well known indicators in charting.

Choosing the right FX dealer is a way to avoid unnecessary risks. FOREX dealers are not all regulated the same way. Although FOREX dealers must be regulated by law, firms and individuals can solicit retail accounts for FOREX dealers and manage those accounts without being regulated. As a trader you should take up the responsibility of finding out if your FOREX dealers are regulated. If they are not, you may be exposed to additional risks.
Also, beware of dealers with investment schemes that sounds too good to be true. Pay extra cautions to dealers that you first knew and always look into the investment offers. If you are from United States, you can always refer to CFTF (at http://www.cftc.gov) or NFA (at http://www.nfa.org) for further information.

Conclusions

You came to this article probably because you are new to FOREX and were looking for some readings on the Internet. To be frank, FOREX can be very profitable but the risk beneath is equally great. Remember to always trade with proper investment plan and strategy. Read books, attend courses, watch video seminars, read papers, or even practice first with a dealer’s demo account to get yourself ready. Trade smartly, and gain the maximum out of FOREX – good luck!

Teddy, experienced writter and webmaster. Learn more on Forex trading education on his latest work at http://www.golearnforex.net.

Article Source: http://EzineArticles.com/?expert=Teddy_Low

What You Need to Know About Trading Forex Online

There are many ways you can learn forex trading online. Perhaps the best thing one could do is to first educate themselves as much as possible about the basics of forex and how to trade the forex market. Getting a good solid understanding of what a trend is and how to use a stop loss is what any new trader should do before they demo trade or consider purchasing trading material.

Trend identification is one of the hardest aspects of trading for many people. There are many ways you can identify the trend, but the most important point not how you identify it but that you know the trend before placing trades. Why is it important to know the trend before placing a trade? Trading in the direction of the trend increases your chances of placing winning trades greatly. Trading against the trend increases your chances of suffering a loss.

Using a stop loss is crucial to trading forex or any financial market. Sadly, many new traders do not use stop losses and they quickly learn how expensive this bad habit can be. A stop loss protects not only any profit on your open trade but also helps protect your trading capital. Financial markets can move suddenly and having a trade open without a stop loss is equivalent to playing with fire. It is only a matter of time before the market moves rapidly against you and you are to slow to minimize the damage.

The best thing you can do to learn about forex trading online is search online for as much basic information about trading, especially stop losses and trend identification. Having a good solid understanding of trading is crucial if you wish to be a successful trader online.

The Swing Trading website has everything a new trader could possibly need to know to help them get an edge and learn all about forex trading online.

Article Source: http://EzineArticles.com/?expert=Jolon_Warren