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How to trade the Forex for fun and profit


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How to trade the Forex for fun and profit

  1. 1. ==== ====Check out this astonishing forex stratgey that produces 500 pips a month like clock work, more ifyou want ====Forex currency trading (or Foreign Exchange trading. FX for short) is one of the most lucrativeforms of financial trading today. The Forex market was once limited to lending institutions andgovernment banks, but is now open to all investors. If you are currently a stock investor or areinterested in stocks, then you dont want to miss the amazing opportunity the Forex market offers.More than $2 trillion dollars in currencies are being traded daily on the Forex.This brief beginners guide will explain what Forex currency trading is and how it benefits you.Also, the guide will show you how to avoid the pitfalls of Forex currency trading, and anexplanation of the Forex market.If youre familiar with the stock market, then you already know how much research it takes to keepup with the thousands of companies on the market. You could spend hours per day trying to findstocks with the most profit potential and the least amount of risk. With Forex currency trading, thiselement of trading is almost non-existent. Why? Because Forex currency trading focuses on onetype of instrument, i.e.foreign currency exchange rates.When you buy or sell in the Forex Currency Marketyou are actually buying or selling a "pair" of foreign currencies. A "pair" means two currencies thatare being compared by units called pips, or a common denominator between the two currencyvalues. Bids are placed for the pair based on what buyers are willing to pay. An asking price iswhat sellers are willing to take at any given time.For example, you might buy Euro dollars with your US dollars, so you are actually buying theEUR/USD pair. The pair will either increase or decrease, depending on what buyers are willing tobid, giving you a gain or loss for your investment.The rise and fall of pips in Forex currency trading will depend on each countrys foreign exchangerate. The exchange rates can be affected by interest rates, unemployment rates, inflation, nationalevents or disasters. If you have ever traveled to a foreign land, then you understand that your owncurrency could either be worth more or less than the currency of that nation.Forex Currency Trading Leverage: Many Forex currency trading firms will allow you a leverage of
  2. 2. 100:1 for your trading. Some will offer even more. If you have a 100:1 leverage, you can invest$1,000 of your own money, but trade $100,000! You can actually double your money with anincrease of only ten pips. However, you can also lose your entire investment with a decrease. Thiscould equal big profits or losses, so be sure to consider the risks before jumping in with both feet.Major Benefits of Forex Currency Trading: There are several major benefits of Forex currency trading. The Forex market is non-stop, 24hours a day 5 1/2 days a week. Trading on-line in todays world of lighting fast computers makesfor a very full day of trading. The nice thing is this can be acommplished from anywhere with aninternet connection including your home. Though the risk is high, the profits can be tremendous.Because of the very high leverage in the Forex, you as the invester get far more trading freedomthan ever. There are no brokerage or commission fees to pay, and no restrictions on short selling.Avoid Pitfalls in Forex Currency Trading: There are a few things to watch out for as a new investor.Be sure to choose a dependable registered broker, perferably one who does not have a tradingdesk. Brokers with trading desks are actually biding against their investers and it can make for atesty relationship. One of the better brokers without a trading desk is a company called FXCM.They are traded on the stock exchange and I encurage you to do your due dillegence. Be sure toresearch the company before you commit. You can avoid a lot of trading mishaps by trading in ademo account first. All good brokers will set you up with a demo account if you open a realaccount with them first. It is a good idea to become familiar with the Forex market and how itworks. Most Forex currency trading brokers will allow you to have a free 30 day trial of theirsoftware making "paper" transactions to see if you are comfortable with the level of angst withinthe trading platform.Beware of companies or websites that promise "untold riches" trading the Forex market. As withany investment, there is always risk no matter what their claims.Forex currency trading is a fabulous business opportunity, but without the usual headaches ofrunning a company. Understand your risks, start small with your investments, and watch yourportfolio grow with Forex currency trading!Gust A. Lenglet is an accomplished author and financial advisor and has written many articles inthe fields of investments and education, as well as taxation. He is President and CEO of HBSFinancial Group, Ltd. and offers online tax filing as well as timely advice on tax planning andinvestments.Article Source:
  3. 3. Edited by Allan Walker==== ====Check out this astonishing forex stratgey that produces 500 pips a month like clock work, more ifyou want ====