Have you ever thought about making money trading in the stock market or in the forex? If you aren’t living under a rock you have heard about the stock market. But have you heard about the FX. The foreign exchange (currency or FX) market is where currency trading takes place. FX transactions typically involve one party purchasing a quantity of one currency in exchange for paying a quantity of another.
With the easy access to the internet many people are getting involved with forex trading. With in the last few years the forex market has really taken off. The forex market is 30 times larger than the US stock market. In order in trade in the forex you don’t need any special degree, license or diploma. What you need is to educate yourself, have money that you are willing to invest and even willing to loss, an internet connection and a forex software application.
How big is the FX you ask? The forex market is the largest in the world. With so many countries involved the daily turnover is 1.5 million dollars. The FX is extremely liquid which makes it very desirable for traders. The FX has long trading hours: 24 hours a day except on weekends. The hours are 22:00 Coordinated Universal Time UTC on Sunday until 22:00 UTC Friday. This is a great benefit for the fx trader. You can make you trades after, before or inbetween your daily obligations.
As a stock trader the market is only open 8 hrs a day. Any event over night can cause a stock to go up or down. But with the forex there are no gaps in time during the week. Forex traders and day traders find this appealing.
As a forex trader you always trade in pairs and usually against the US dollar. There are 7 major currencies which are; EURO (EUR), The British Pound (CGP), Swiss Franc (CHF), Japanese yen (JPY) Australian Dollar (AUS), New Zealnad Dollar (NZD) and the Canadian dollar (CAD). You can enter these pairs into a currency calculator.
Currencies are always going up and down and you can trade in either direction. This course that the currency takes is due to how the world perceives the value of a currency. Economic factors of a country is a real key. You don’t have to be economic guru but you should know where to get the information and be familiar with the data. When you make your forex trades your forex software application with be able to take over. The application is a mathematical program you put in a few setting and it takes over.
Sorry to bust your bubble but there is a downside to Forex trading. The forex is a great place to make money but it can also be a war where you loss your money and confidence. You must be wise with your money and trades. The great and famous military leader, Sun Tzu once said, “the obession for victory is a state of mind that benefits the enemy” These wise words are applicable to the FX trading arena. There is nothing more damaging to a trader or for that matter any business owner than the obsession of winning or victory. Making a profit is always sweet but there will be times when you lose as a forex trader. You must be aware and realistic about this as a forex trader.
Don’t trade with the mind set that you must never close a trade until you turn a profit. It is my opinion that you should never obsess with forex trading, be wise with your stops and forex indicators. Good luck and happy trading.
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