I had recently become interested and therefore started reading about buying and selling currency.

It’s called Forex Trading. Like most folks I have read about huge possible profits in buying and selling different nations currency.

I searched many forums where a lot questions were asked about this investment system. I remember thinking that most questions were basically what is Forex Trading and how does one make money from it?

It was then I decided to write this article and explain briefly what it is and how it could be used. If this investment system interests you I suggest you research further before investing your money.

WHAT IS FOREX ?

The Foreign Exchange, called “Forex” market, is the largest financial market in the world, with over $1.2 trillion changing hands every single day. It is many times larger than the New York Stock Exchange.

What is traded on the Forex Exchange? The easy answer is money. Forex trading is where the currency of one nation is traded for that of another. Therefore, Forex trading is always traded in pairs. The most commonly traded currency pairs are traded against the US Dollar (USD).

The major currency pairs are the Euro Dollar (EUR/USD); the British Pound (GBP/USD); the Japanese Yen (USD/JPY); and the Swiss Franc (USD/CHF).

Because there is no central exchange for the Forex market, these pairs are traded over the telephone and online through a global network of banks, multinational corporations, brokers and currency traders.

BENEFITS OF FOREX TRADING:

LEVERAGE: When you trade in the Forex market, a small margin deposit can allow you to control a much larger total contract value. Leverage gives the trader the ability to make very nice profits and at the same time keep the risk of losing your cash to a minimum.

LIQUIDITY: Because the Forex Market is so very large, it is normally very easy to sell and turn your trade to cash. This means that by clicking your mouse you can quickly buy and sell.

PROFIT IN BOTH ‘RISING’ AND ‘FALLING’ MARKETS: One of the most exciting advantages of the Forex market is the ability to generate profits whether a currency pair rising or falling.

24HRS: From Sunday evening to Friday Afternoon EST the Forex market is open for business.

DEMO ACCOUNTS: These are available so you can practice without the chance of losing any capital.

In Forex Trading, there is a bid price and an ask price, and the difference of the two is called the spread. The bid is the price at which buyers are willing to buy, and the ask is the price that sellers are willing to sell at any particular time.

The prices are always 5 digit numbers, and it doesn’t matter where the decimal is placed. For example, GBP/USD (British Pound) has a bid price of 1.3745 and an ask price of 1.3748, thereby yielding a 3 pip spread.

A long position is a trade when the investor buys a currency at one price, with the expectation of selling it some point in the future at a higher price.

A short position is one in which the investor sells a currency with the expectation of buying it back at a lower price, expecting the currency to fall.

If you have found this subject at all interesting I suggest you research Forex Trading and really understand this format before investing.

You will find some very exciting systems available that will put your Forex Trading on auto pilot.If you would like to read about one of those Autopilot systems: Go here Forex Profits While You Sleep

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Learning to trade forex seems simple ands easy on the surface, but all the successful people who have spent time learning to trade forex properly will tell you that there’s much more to it than meets the eye. They are only partly right.While you are learning to trade forex, bear in mind that you are embarking on an activity that has a daily turnover on average of between $1.5 trillion to $2.5 trillion. That’s a lot of money! One billion is one thousand million, and a trillion is one thousand times that again. There’s a lot of money to be made, so learning to trade forex is certainly a good skill to have.Forex is an acronym for foreign exchange. Forex trading continues day and night without a break; as one market closes, others open and this keeps going on and on all over the planet.Trading is done on the differences between currencies and is always done in pairs. You can trade the American dollar against the British pound, or the Japanese yen against the European euro, or any of the other world currencies.Learning to trade forex properly does not mean jumping in and trying your hand. You will probably lose everything with a method as poorly thought out as that. There are three attributes that you must learn to employ to have any chance of being successful: patience, discipline and simplicity.Trading in forex has risks, big risks sometimes. For this reason the online forex companies offer you the chance to trade with a demo account. This is exactly the same as the real thing, but no real money is involved.This kind of training is invaluable. This cannot be stressed enough. Practice on demo accounts for as long as it takes for you to consistently make profitable trades. There will be some losses of course, but you must get to the stage where you are profiting more often than losing. Then, and only then, consider trying to trade for real.If you keep it simple, discipline yourself to only trade a low percentage of your overall trading amount, and have the patience to see slow but steady profits, then you will have gone past the learning to trade forex stage and have entered the realm of the sensible and usually successful trader.The foreign exchange market, also known as the forex or FX market, in the form that we know it was established as recently as 1971. Prior to that there were the fixed currency exchanges.Trading in foreign exchange is conducted on a twenty-four basis for five days of the week, every week. It is a global currency market, though the big three of the US dollar, the Japanese yen and the European euro tend to dominate. Learning to trade forex is therefore something that’s not limited to certain times. The market is active constantly during the working week.Currencies are traded in pairs and are identified by three letters. The first two letters usually identify the country involved, and the third letter identifies the currency of that country. For example, USD is the American dollar, JPY is the Japanese yen, and GBP is the British pound. Learning to trade forex is not difficult if you don’t let it be so.—Are You Lying Awake At Night Beating Yourself Up With What-Ifs And Desperately Searching For A Way To make some cash ?
http://www.investingforex.com/index.html

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In the Film “Dirty Harry” starring Clint Eastwood, the character Dirty Harry has a villain in the sights of his famous magnum hand gun.A few inches away from the villains hand is the villains gun.It’s a tense moment in the film while the villain decides whether to go for his gun on the assumption that Dirty Harry’s gun is empty – or to surrender.Dirty Harry then utters the immortal line “Are you feeling lucky punk, well are you?”Of course, Dirty Harry knows that he [Dirty Harry] has an extremely high probability of a successful outcome to this encounter.A common thread amongst many novice (and some not so novice) traders is that have been placing trade after trade and at the end of the day/week/month they are not doing as well as they expected.Does this ring a bell?One of the greatest myths in trading is that an “active” trader is one who spends their entire trading day placing trade after trade.Some even believe that the “active” trader places trades on several different currency pairs simultaneously and as soon as one trade closes they open another.Many novice traders spend their whole time looking for trading opportunities and become very dismayed if they cannot find one – believing that the market should somehow provide the ideal opportunity for them whenever they desire to trade.These are the very myths and miscomprehensions that cause many novice traders to produce poorer results than they would have wished for.In truth, the active and successful traders are the ones who spend their trading time studying the charts, assessing the possible impact of pending news releases and watching for all of their indicators to move into perfect harmony.Then they start looking for reasons NOT to trade.Yes, I’ll say that again – They start looking for reasons NOT to place a trade!If after looking for reasons NOT to place the trade, they cannot find any, then they know that this will be a high probability of success trade.Then, and only then, they enter that trade. Successful active traders understand that opportunities need to be watched and waited for.They understand that great opportunities regularly come along, they just need to be ready to take advantage of them when the time is right.Successful traders know that they cannot force the pace – the market dictates and they respond, but they only respond when the conditions are as near perfect as can be expected in the forex market.Does this take a lot of self discipline and self control? Yes.Does it make a lot of difference to their overall trading performance? You bet it does.Next time you believe that you are ready to place a trade, try looking for reasons NOT to place that trade. You will be amazed at the difference that this procedure will make to your trading.In future, before you pull the trigger, you need to have the assurance of knowing that you have the highest probability of success – just like Dirty Harry had – and to not be asking yourself “am I feeling lucky punk, well am I!!!”—Martin Bottomley is a full time professional forex trader, acknowledged author, forex tutor and co-developer of forex trading software including The Amazing Stealth Forex Trading system.
You will find more information at: http://www.stealthforex.com

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