Learn the essentials of Forex Trading - Even the experts start somewhere!
Forex Trading can be a mystery even for experts. One thing is clear, if you want to have a chance to trade profitably you have to learn the basics.
Remember to start off small, then grow as your success grows! Keep in the back of your mind that almost anybody has to lose sometime. The winners in Forex Trading are those who win most of the time, whether that be 'the big one' infrequently or lots of consistent small wins.
There are people flying around in expensive jets without the money for their next refuel, and there are those looking to buy their next executive plaything. Then of course there's the teenager down the street working on his first million and grandma who mysteriously just bought a new car. So watch your head, mind your wallet and be keep in your thoughts that this Forex trading stuff is not a game to be taken lightly unless you know how to play!
Do it right and Forex Trading can buy you almost anything, even if you start out with just enough bucks to buy your first e-book on the subject. Get it wrong... well, the big boys use big calculators!
So where do you start to learn about Forex Trading? There are hundreds of websites, e-books and tutorials dedicated to the subject. For example http://www.learn-anything.com/Forex/Forex.htm fulfils a function and offers great resources and books that can help get you started.
A number of the big online trading houses offer 'trial' accounts where you get to play with 'dummy-money' and see actual results over the trial period. When I tried it, I lost my shirt, but then, I didn't do any reading and to be fair, I had in the back of my mind all the time that it wasn't real money I was betting with. I must say, for a while there, I was hooked and one day I'll give the matter serious attention (when I feel brave and have read enough!).
There are lots of variables involved with Forex that you need to keep in mind. In my own experiment, I realized that a good understanding of basic economic factors (like budget announcements) have a big affect on the markets. Seasonal changes, corporate announcements, big-mergers, war, terrorism are just some of other important variables that effect FOREX.
I figured that I could have increased my chances if I had a plan, one that included my target currencies and a thorough history of trading over the last five years or more. In my view, I would want to know when government budgets are announced, and have an understanding of previous movements at similar times. I would also want a clear history of exchange movements affected by top corporate announcements and world plot correlations with past profit announcements. You will also need to have a good 'feel' for the abnormal, like droughts, hurricanes, forest fires, violent episodes like war, massive infrastructure building projects etc. You also want to be alert to new discoveries that might bring prosperity on a national scale to your target currency, like oil finds, medical breakthroughs, even hosting the Olympics can be a major currency mover.
Remember that little movements mean massive sums of money have changed hands. Donít be fooled into thinking that a half pip isnít much. If you have a chance to make money Ė take it and move on to your next trade. Donít get all head-strong and greedy!
Above all, read what the experts have to say. Your best ever investment will be in your own understanding on the subject, so buy the books, read them all and then you will have a little of what you need to succeed in FOREX.
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