What is Forex trading? What is the Forex Market? All the basics you need to know are here.

FOREX Trading knowledge base for any aspiring online forex trader.

Dec14
2011 Written by admin

Dear aspiring FOREX trader -I am not gonna waste your time with long introductory essays of questionable value, we both know why you are here and what you are looking for.

I am not trying to sell you another 100% working strategy that will turn you into a millionaire before the day is over, nor am I going to learn you how to become a pro trader!

What I am offering is the very basic introduction into the world of forex trading, definition of the most important forex terms, the most common online trading strategies and much much more.

Simply put – this is a collection of the FUNDAMENTALS of Online Forex Trading that any successful trader simply has to know in and out.

Enjoy your stay.

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More information you should know about the Forex Market.

Dec20
2011 Written by admin

The Forex Market is quite a huge monster and there are many more things you might want to know about it. Some of the following info is crucial to know, some is just interesting stuff you might find useful.

Forex Market is the biggest market in the world. The average daily turnover exceeds 4 trillion USD – DAILY ! The average constantly grows, for example its 20% more than it was in the year 2007. The huge amount of operations executed daily make it also the most liquid market in the world. In other words, there is always someone willing to buy what you sell or vice versa.

Forex offers huge profit potential - I do not think there is any other LEGAL business that would compare to the ROI you can achieve on the Forex markets, except for maybe commodities or stock exchanges, but that is quite similar form of business. There is one good reason for this and it is called LEVERAGE. Simply put, the Forex markets offer the option to control (buy or sell) a big amount of any given currency with a relative low amount of your own money, which is called a MARGIN. I will address this later in a separate article,

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Things you need to know before trading on the forex markets

Dec16
2011 Written by admin

So you heard about the FOREX markets and would like to try it? There are a few things you need to know about and consider, when planning to become a speculative FOREX trader.

1. People loose money on the Forex markets all the time ! Only about 20% of speculative traders are able to profit in the long run, some sources say its only 10%. Its simple logic – when someone earns money, there must be someone who “looses” it. Its is definitelly possible to make tons of money on the forex market, but not everybody will succeed by far. Keep this in mind, you might loose all the invested money – which results into point 2 of this list :

2. Only invest an amount you can afford to loose. This is most likely the most important rule for any starting forex trader – selling your house to get start-up capital for your forex career is a BAD BAD idea :)

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What is the FOREX Market in the first place?

Dec15
2011 Written by admin

The first thing you need to know about the Forex Market is pretty simple – what is it actually? Let me explain this in a really simple form so anyone can understand.

Forex is an abbreviation for Foreign Exchange, so naturally Forex Market means Foreign Exchange Market.  Simply put – it is a market where you can exchange one currency for another. Have dollars and want euros, cool, the forex market can serve you – in case you have them in large volumes of course.

It is not a traditional market thou, you do not just walk in and trade your dollars, pretty much all trading is done by electronic means these days – phone, internet …

Many entities use the Forex markets for various reasons – big companies need to exchange huge amount of money to pay their employees overseas for example, companies secure themselves against exchange rate fluctuations etc… but an ever growing part of the market is built by currency traders who speculate on movements of the exchange rates, hoping to hit the right direction and profit on it. These currency traders are no interested to buy the actual currency, they only want to profit on the fluctuations, and this is what you are looking for as well.

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