Forex Trading - A Beginner's Guide to the Fastest Way to Absolute Financial In

[Amos Hannah]

Most people are blissfully unaware of the incredible financial
opportunities afforded by Forex trading. They think that currency
trading is for the select few monied individuals and large financial
institutions. Nothing could be further from the truth, thanks in the
main to the internet and the growing number of Forex trading software
applications that enable sizable returns on investment in a matter of
few weeks allowing genuine financial freedom to be achieved by anyone
with a computer and access to the internet.
Forex Trading Explained
To understand the benefits of Forex Trading and how you can profit,
you first have to understand a few simple facts:
1) The Forex market trades a mind boggling $4 Trillion dollars a day
and simply dwarfs the worlds stock markets. The huge size of the
currency trading market means that the market cannot be manipulated by
large organisations or wealthy individuals the way the stocks round
the world have been.
2) The Forex market trades 24X7 as opposed to the stock market which
is only open 8 hours a day. To make matters worse, most of the most
profitable trades happen either before the stock market opens or after
the close of the market and these profitable trades are not open to
the general public that is you and me. If you haven't already noticed
the stock market is not a level playing field. This is not the case
with the Forex market which is a genuine equal opportunity, level
playing field.
3) The Forex market employs leveraging which has the effect of
multiplying your investment making it easy to achieve sizeable returns
rather rapidly. The following example illustrates this
Investing $200 in a Forex contract ( with x100 leverage)
Currency 200 contracts @$1 =$200 x 100 = $20,000
5% Increase = $21,000
Total profit = $1000
4) Forex trading involves dealing with currency pairs, for example US
dollar (USD) and the Euro Dollar(EURO) . So if the US Dollar is rising
against the Euro you make money buy buying the USD/EURO currency pair.
On the other hand if the Us Dollar is falling against the Euro dollar
you make money by selling the USD/EURO pair. The on-line broker you
select handles all this for you. You choose simply when to initiate a
trade by buying or selling a currency pair and when to exit the trade
having made a profit.
5) A reasonable return on investment can be measured in weeks, for
Forex trading, as compared with months or years when compared with
stock market trading.
How To Place A Trade Or Make Money Forex Trading
First you need to find an online Forex broker. Essentially the broker
acts on your behalf and acts as he middle man between you and the
actual Forex market. The better brokers supply you with an online
trading facility. If you can use an online banking facility or can
make purchases online then you have all the necessary skills to use an
online trading facility. Before you start trading you will have to
learn and understand how to interpret Forex charts. Essentially a
Forex chart is a graph of the behaviour of the currency pair over
time. It can take from 3 months to a year to master these charts but
fortunately there are some short cuts. You could obtain a trading blue
print that consists of a set of rules which you apply to a Forex
currency pair chart to determine when to trade and when to take
profits. The problem is that human nature always affects trading which
is why 90% of traders lose to 10%. To counter this, there is a new
breed of automated Forex software that follow built in rules to
automatically trade on your behalf 24X7. These applications can be
thought of as Forex trading robots and are incredibly profitable and
are the preferred solution to anyone considering Forex trading be a
novice or experienced trader.