Trading Forex: You Will Be Amazed At This 6 Amazing Benefits
FOREIGN EXCHANGE MARKET
What Does FOREX Stand For? FOREX stands for Foreign Currency Exchange Market. The FOREX Market is the largest market in the world and can be accessed anywhere in the world. Trading forex can be done anywhere in the world with a market volume of over 5.1 Trillion a day, providing almost infinite liquidity and flexibility.
11 Dec 2019 — In 2019, the global foreign exchange (forex) market saw an average daily turnover of approximately 5.1 trillion U.S. dollars. This means that on an average day in 2019, the sum of all transactions in the forex market amounted to almost 6.6 trillion U.S. dollars.
How do you trade?
Instead of trading “stocks” where there are thousands to choose from, you are trading pairs of currency against each other. This gives you an advantage because you can focus on just 2 pairs of currencies instead of countless stocks. You can trade from your home computer, or any computer with an internet connection from anywhere in the world.
When do you trade?
The FOREX Market is open 24 hours a day so you can trade whenever you want! You just need a computer, a Demo or Real Money account and a willingness to learn, research, and trade!
Why Should I Trade?
You should only trade if you are ready to change your mind about how much money you.
CAN make and reach your full potential?
Trading Forex is a great tool to leverage your time and replace your income.
Here are the 6 benefits of Trading Forex:
- You can work anytime you want 24 hours a day, 6 days a week.
- It’s a continuous online (electronic) that never closes.
- Work at home, on the beach, or anywhere in the world!
- You can trade foreign currencies on a high leveraged basis, sometimes up to 200 times your investment!
- This is made possible by the higher levels of liquidity in the market.
- Price movements are highly predictable! Fx Market trends generally repeat themselves, creating trends that are easily predictable
With all these benefits and tons of others, you can easily make $200 to $3000 dollars a day trading!
Too good to be true ? Let us prove you wrong for FREE!
Forex trading has the potential of becoming a profitable and fulfilling career that will let you have a lifestyle that few other lucrative activities in the world can offer.
But Forex trading is not easy; it may be simple to enter and place your first trade but becoming a profitable trader is a different thing.
FOREX TRADING SIGNALS
You will need to acquire the right knowledge and techniques in order to understand and know when to enter or leave a trade, always fulfilling the main objective every trader must have; making money.
There are two kinds of analysis you can perform on the Forex markets.
They are known as:
- technical analysis and
- fundamental analysis
It is common that traders tend to divide themselves into “technical” and “fundamentalists”. Each group devoting themselves to the main tools each kind of analysis gives them.
Technical forex traders base their trading on the analysis of the charts and the number of indicators derived from the plots of price oscillations and patterns.
Meanwhile Fundamentalists traders base their trading mostly on the fundamental numbers and economic indicators of countries’ economies.
Though, even if divided, both tendencies tend to complement each other to some degree.
Let’s look at the “fundamentalists” side and focus on one of the situations every forex trader must be aware of and don’t let the events involved affect his trading efforts.
This risky situation is that when unprecedented chaotic world events start to develop as the trading day goes on. The power of the media (tv, internet, social media and printed) can magnify and sometimes it may even distort the events taking place and impacting the trading journey in a significant manner.
The result of this magnification and rapid diffusion of the news about the series of unfavourable events taking place is an increased atmosphere of fear, confusion and uncertainty in the trading world.
And fearful traders are not prone to make the best trading choices because they have given themselves to panic and emotional reactions instead of reasoned and intelligent decisions.
If you need to have more specific examples of these kind of events you can search a bit inside your memories and consider the impact of just a few types of unfavourable chaotic world events as the political upheavals or corporate scandals of companies as; Enron, WorldCom, 2008 crash etc.
There is also the example of the terrorist attacks on Sep 11 in New York, wars in the Middle East, the recent outbreak of Corvid-19 etc. Also, natural disasters: tsunamis, earthquakes, floods, freezes, droughts, hurricanes along with wars can cause great disruption in a trading journey.
In short, every forex trader should be totally sure that his method of trading has built-in safeguards (stops, limit orders) to prevent a major financial loss from his trading account in case any of the unfavourable events should it takes place. And being realistic, many of those events will surely happen in the future.
As you read the forex charts, remember that the two fundamental approaches for online forex trading: fundamental analysis and technical analysis have their place in any winning strategy.
Fundamental analysis doesn’t rely on forex charts. It scrutinizes political and economic indicators to determine trades
Technical analysis on the other hand, attempts to predict price swings by analysis of historical price activity. Those who use technical analysis study the relationship between price and time.
The most actively traded pair of currencies is the Euro and the US dollar, the currencies are expressed in relationship to each other in pairs.
However, there are other currency pairs to be aware of too. Here is the list of the 10 most traded currency pairing:
- EUR/USD (euro/US dollar)
- USD/JPY (US dollar/Japanese yen)
- GBP/USD (British pound/US dollar)
- AUD/USD (Australian dollar/US dollar)
- USD/CAD (US dollar/Canadian dollar)
- USD/CNY (US dollar/Chinese renminbi)
- USD/CHF (US dollar/Swiss franc)
- USD/HKD (US dollar/Hong Kong dollar)
- EUR/GBP (euro/British pound sterling)
- USD/KRW (US dollar/South Korean won)1
Forex charts don’t offer bullet proof trading hints, but they can help a trader. Past trends do have their place in forex trading as most traders will admit and using the charts to track historical trends can assist a trader in making a snap decision.
The online investor can typically joins a service that provides real-time charts that updates on currency activity. Charts can be checked on a minute to minute basis. For those who primarily do their trading based on historical accuracy this can ease the burden of prediction.
Most forex traders however use a combination of fundamental and technical analysis. They may chart historical trends, but they will also pay close attention to political, cultural and economic indicators within a region.
They might use charts and other techniques to check correlation between political climate and currency fluctuations. But even the most sophisticated technical analysis software or tool has its limitations.
A trader must be prepared to take risks… and invest money that is not needed for the immediate future.
There are many other AWESOME reasons to trade FOREX and you can learn more here by downloading our FREE E-Book!