Monday, May 16, 2011

Forex Trading: How to start?

Forex is the shortened word of Foreign Exchange, which is a decentralized and global market to buy and sell stocks. Forex is the biggest market in the world with many financial centers around the world working as anchors of trading between a wide range of buyers and sellers.

The primarily and most important reason of the Forex or foreign exchange is to assist the trade and investment internationally, helping the businesses with the currency, converting it to one to another. Forex helps, for example a US business to change Dollars to Pound Sterling, even if the business income is in Dollars.

Forex or foreign exchange is very unique, because it has a continuous operation of 24 hours, its geographical dispersion and its huge trading volume. But, how can I invest in Forex?

1. Research: Forex is the biggest market in the world, so you can find the best option, if you think about it, forex has it.

2. Don't go to the Forex water without consulting first: A broker is always necessary to invest, he is going to be your trader. The regulations in Forex are tight enough so brokers can't avoid playing with these rules. But you can also search the US government's website when you have a broker, to determine if is playing against the rules.

3. Study: Forex is very wide and you will need to investigate and educate yourself, so you don't have to rely of what your broker says. Learn how to understand world currency and its fluctuations. You can find tutorials and free education programs at internet about forex, also you can consult with brokers, play with systems with no money, or follow real traders with social applications. The more you can gather to educate in Forex, the better.

4. Learn a Forex Platform: Is many software available to foreign exchange trading, you can see the buy and sell prices, various currency pairs (currencies are traded in pairs, EUR/USD, for example). These softwares will help you to learn as well how your pair is doing. Learn methods to know when to go it, and to out.

5. Open a Forex trading account: When you sign up, you have the option to practice with free money with the practice account. Practice and practice and practice, only until you consistently are making good trades, jump into the ocean. Follow forums and ask other people, keep yourself in the loop at all times, stick with one pair, and keep an eye to big market items, such as oil and gold.

Forex is very volatile and risky, be ready to lose when you are learning, try to be careful with the money you use, this is not a casino but the environment is similar. 


1 comment:

  1. Wow, simplifying the work precess to get into forex, it makes it very appealing now. Thank you.