Trading Currencies on the Forex Market

The most lucrative and liquid trading market in the world is the Foreign Currency Exchange Market, or Forex Market - so named because you are literally trading currencies. This market literally makes people millionaires - though plenty lose their shirt as well, sometimes for the same reasons!

Forex trading is easy to get into it, but it’s also hard to master. There are plenty of resources to get you started, but there are a few key things to think about when you are looking.

First, here’s what Forex trading is all about. The basic idea is that you are exchanging money from once currency type to another. Say we do the Euro/USA pair. The price is 1.5/1.0, that’s 1.5 euro for 1.0 dollars. Buy 300 units of Euro. Later that day, the price of Euro rises from 1.5 to 2.0. This is your chance to sell the 500 Euro and turn it into USA dollars.

FX trades need to run these trades through a broker. You can find them in the phone book or you can sign up online. The brokers online usually have a program you install so you can see the market information. Check out their information and read up on fee’s and service costs. A good idea is if they have a practice account, it will let you have the chance to work on live trades, but only with fake money.

When you master funny money, you can start using your own. I would suggest starting with a low denomination. No one gets far by spending $10,000 on their first trades. The market is unforgiving with trades and you should only create trades that you don’t mind loosing at first.

When you are able to get a pulse on the market, it’s safe to invest more. The higher the yield the more the risk. A good strategy is low returns. This is something that the bots do. Focus on getting small profit on each trade, but be sure the trades are consistent and constant.

If you work hard, this can become a full time job and give you enough to retire on. You must understand that 70% of Forex traders do loose more money than they gain. So keep up with your information and constantly strive for new angles. Don’t be reckless and be satisfied with low return trades if you are getting them frequently.