Foreign Currency Trading – Your Guide to Becoming Rich!

Of course you want to be rich – who doesn’t? The thing is, with gas prices soaring right through the roof and daily expenses becoming too much to bear, only very few people can become rich.

Well, if that’s what you think, you probably haven’t heard about foreign currency trading and how it is the answer to your prayers. By engaging in this kind of activity, you can become rich, richer than even in your wildest dreams. There are many scams that abound online, so we understand your hesitation. But look around, search the web, and you’ll find that more and more people are attesting to the efficiency of the currency market as a money-making tool. Trust us, this is the one deal you don’t want to miss out on.

So what is the currency market in the first place, you ask? And how can you earn money in foreign currency trading? Stay with us and you’ll find out soon enough.

The Foreign Exchange market is more commonly referred to as the Forex market, also known as the currency market, and exists whenever and wherever a particular currency is traded for another. It is the most liquid and the largest of all the available markets in the world today, covering trading between large banks, central bans, governments, currency speculators, multinational corporations, individual traders, and other financial markets and institutions. It operates by trading pairs of foreign currencies, all of which are pressed against the value of the US dollar. You buy one currency in the pair you have chosen and sell the other, depending on your estimate of the value of each. For example, in a EUR/USD, you buy the first and sell the second.

You’d want to invest in the Forex market right away, because the average daily trade in the global currency market and related markets amount to almost US$4 trillion. You definitely want to take a piece of that foreign currency trading pie.

The first thing you have to do is to open a Forex account. Since you may want to practice caution on your first try, a mini Forex account, in which lot prizes are traded at 10,000 is recommended, as opposed to the standard Forex account, in which lot prizes are traded at 100,000. Once you’ve opened your account, you now have to arm yourself with knowledge in foreign currency trading lingo. Find out what a PIPS stand for and other items on the agenda.

It doesn’t stop at learning the lingo. If you want to be good at currency trading, you have to learn to read the charts, be informed of international current affairs, and alerted in the rise and fall of interest rates around the world. There are so many factors that contribute to the value of one currency, so you have to practice intuition, as well as logical and technical data analysis.

Now all you have to do is download software that will allow you to trade. To avoid paying brokers (they can charge a lot), try downloading freeware. You can switch to a standard Forex account once you’ve improved your foreign currency trading skills and acquired more confidence.

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The Basics of Currency Trading

There are a few basic terms you must know when you are trading in currency or also known as Forex. The understanding of these terms are essential to currency trading traders to gain more knowledge and experience in currency trading. So here we will look at a few basic terms that are being used in currency trading.

First we look at the term “Bid” which defined as the price that a buyer is prepared to purchase a currency. Forex Broker defined as an individual or a firm that acts as intermediary that puts together buyer and seller for a commission.

Close a position means the process of closing a trade from one’s trading by either buying back a short position or selling a long position.

Short position defined as a position that sells instrument by benefiting from a decline in market price.

Long position defined as a position to purchase more instrument than is sold which have an appreciation in value if market prices increase.

Day trading is a trade that opens and closes trading positions within the same trading session.

Depreciation defined as a decline in the value of the currency due to market factors.

Initial margin is the initial deposit that is required to enter into a position of selling and buying currency.

Limit order defined as an order to buy at/below a specified price ot to sell at/above specified price.

High/Low defined as the highest traded price and the lowest traded price for the currency pair on the current trading day.

Margin call defined as a requirement from a broker to close a position if the price has moved against the customer.

Open order defined as an order to buy or sell when a market moves to its defined price.

Open Position defined as a deal that has not being settled that is subject to exchange rate movements.

Overnight means a trade that remains open until the next day.

Pips represent the smallest incremental move an exchange rate can make which depends on the currency pair.

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Trading Guides on Currency Stratagies

The forex market is rapidly becoming one of the most popular places to make money, and forex trading and currency strategies are an important part of being a successful trader.

Reading a trading guide online is a great place to start, however there are some important things about the foreign exchange market that set it apart from other similar trading centers. In this brief article we’ll go over these unique characteristics, and how looking up currency strategies and trading guides can help you get ahead in an increasingly popular and profitable market.

Perhaps the most remarkable thing about the foreign exchange is the extremely high liquidity. This means that the goods traded on the market, in this case currency, do not change in value when they are converted to other goods.

This high liquidity makes for low market power across the board. Market power refers to the ability of a single entity to raise or lower forex trading prices, and a low overall market power means a high level of competition. This near-perfect competition makes the playing field even between huge corporations and individual investors, and is a great place to invest if you are doing so on your own with a limited amount of funds.

Reading up on currency strategies or a trading guide online makes it even easier to get ahead, so that individuals can actually beat out corporate investors with the right amount of research.

Currency strategies and trading guides are, essentially, ways to invest money that use predictions about the future of various economies based on world events. For example, say you know that a new oil field was recently discovered in a country that has a relatively low amount of exported oil.

This oil field, if significant enough, could drastically alter that country’s economy, and therefore the value of its money. A trading guide online or currency strategy could help you take advantage of this, and are also designed to make trading easier and faster.

Forex trading is not as difficult as some people believe, and currency strategies are designed to make it even easier. A trading guide online can also be a huge help, so whether you’re a new investor looking for an exciting, profitable new market to dive into, or an experienced trader who only needs a little extra help succeeding, consider checking out the numerous trade strategies available across the web.

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