Forex trading guide for beginners

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INTRODUCTION
The foreign exchange market is also known as FX or it is also found to be referred to as
the FOREX. All three of these have the same meaning, which is the trade of trading
between different companies, banks, businesses, and governments that are located in
different countries. The financial market is one that is always changing leaving
transactions required to be completed through brokers, and banks. Many scams have
been emerging in the FOREX business, as foreign companies and people are setting up
online to take advantage of people who don't realize that foreign trade must take place
through a broker or a company with direct participation involved in foreign exchanges.
Cash, stocks, and currency is traded through the foreign exchange markets. The FOREX
market will be present and exist when one currency is traded for another. Think about a
trip you may take to a foreign country. Where are you going to be able to 'trade your
money' for the value of the money that is in that other country? This is FOREX trading
basis, and it is not available in all banks, and it is not available in all financial centers.
FOREX is a specialized trading circumstance.
Small business and individuals often times looking to make big money, are the victims
of scams when it comes to learning about FOREX and the foreign trade markets. As
FOREX is seen as how to make a quick buck or two, people don't question their
participation in such an event, but if you are not investing money through a broker in
the FOREX market, you could easily end up losing everything that you have invested in
the transaction.
Scams to be wary of
A FOREX scam is one that involves trading but will turn out to be a fraud; you have no
chance of getting your money back once you have invested it. If you were to invest
money with a company stating they are involved in FOREX trading you want read
closely to learn if they are permitted to do business in your country. Many companies
are not permitted in the FOREX market, as they have defrauded investors before.

In the last five years, with the help of the Internet, FOREX trading and the awareness
of FOREX trading has become all the rage. Banks are the number one source for FOREX
trading to take place, where a trained and licensed broker is going to complete
transactions and requirements you set forth. Commissions are paid on the transaction
and this is the usual.
Another type of scam that is prevalent in the FOREX markets is software that will aid
you in making trades, in learning about the foreign markets and in practicing so you
can prepare yourself for following and making trades. You want to be able to rely on a
program or software that is really going to make a difference. Consult with your
financial broker or your bank to learn more about FOREX trading, the FX markets and
how you can avoid being the victim while investing in these markets.

FOREX TRADING,WHAT IS IT ALL ABOUT?
Forex trading is all about making big money. Some investors have found it quite easy to
make a large amount of money as the forex market changes daily. Forex, is the foreign
exchange market. Online and offline you will find references to the forex market as FX
as well. Forex trading takes place through a broker or a financial institution often where
you are able to purchase other types of stocks, bonds and investments.
When you are thinking about getting involved in the forex markets you should know
you are sending money to be invested with other countries. This is done to prop up the
investments of people involved in certain types of hedge funds, and in the markets
overseas. The forex market could have your money invested in one market one day,
and the next day your money is invested in another country. The daily changes are
determined by your broker or financial institution. When reading your statements and
learning more about your account, you will find that every type of currency has three
letters that will represent that currency.
For example, the United States dollars is USD, the Japanese yen is JPY, and the British
pound sterling will read as GBP. You will also find that for every transaction on your
account listing you will see information that looks like this: JPYzzz/GBPzzz. This means
that you took your Japanese yen money and invested it into something in the British
pound market. You will find many transactions from one currency to another if you
have money that is scattered through out the forex markets.
Forex markets trading by investment management firms are the companies you can
trust with your money. You want to find a company that has been dealing with forex
trading since the early seventies, and not someone just new on the block so you get
the most for your hard earned money. It is important that you beware of companies
that are popping up online, and often times from foreign countries that are stating they
can get you involved in the forex markets and trading. Read the fine print, and know
whom you are dealing with for the best possible protection.

If you are interested in trading on the forex market, you will find limits for investing are
different from company to company. Often times you will learn that you need a
minimum of $250 or $500 while other companies will need $1000 or $10,000. The
company you are dealing with will set limits in how much you need to open an account
with their company. The scams that are online will tell you, that you only need a $1 or
$5 to open an account, but you need to learn more about that company and where
they are doing business before investing any money, this is for your own protection
while dealing in forex trading and markets online.

FOREX AND STOCKS
Foreign exchange market is different from the stock market
The foreign exchange market is also known as the FX market, and the forex market.
Trading that takes place between two counties with different currencies is the basis for
the fx market and the background of the trading in this market. The forex market is
over thirty years old, established in the early 1970's. The forex market is one that is not
based on any one business or investing in any one business, but the trading and selling
of currencies.
The difference between the stock market and the forex market is the vast trading that
occurs on the forex market. There is millions and millions that are traded daily on the
forex market, almost two trillion dollars is traded daily. The amount is much higher than
the money traded on the daily stock market of any country. The forex market is one
that involves governments, banks, financial institutions and those similar types of
institutions from other countries. The
What is traded, bought and sold on the forex market is something that can easily be
liquidated, meaning it can be turned back to cash fast, or often times it is actually going
to be cash. From one currency to another, the availability of cash in the forex market is
something that can happen fast for any investor from any country.
The difference between the stock market and the forex market is that the forex market
is global, worldwide. The stock market is something that takes place only within a
country. The stock market is based on businesses and products that are within a
country, and the forex market takes that a step further to include any country.
The stock market has set business hours. Generally, this is going to follow the business
day, and will be closed on banking holidays and weekends. The forex market is one that
is open generally twenty four hours a day because the vast number of countries that

are involved in forex trading, buying and selling are located in so many different times
zones. As one market is opening, another countries market is closing. This is the
continual method of how the forex market trading occurs.
The stock market in any country is going to be based on only that countries currency,
say for example the Japanese yen, and the Japanese stock market, or the United States
stock market and the dollar. However, in the forex market, you are involved with many
types of countries, and many currencies. You will find references to a variety of
currencies, and this is a big difference between the stock market and the forex market.

SHOULD YOU INVEST?
Forex trading is all about putting your money into other currencies, so you can gain the
interest for the night, for time period or the difference in trading money all around.
Forex trading does involve other assets along with money, but because you are
investing in other countries and in other businesses that are dealing in other currencies
the basis for the money you make or lose will be based on the trading of money.
Constant trading is done in the forex markets as time zones will vary and the markets
will open in one country while another is near closing. What happens in one market will
have an effect on the other countries forex markets, but it is not always bad or good,
sometimes the margins of trading are near each other.
A forex market will be present when two countries are involved in trading, and when
money is traded for goods, services or a combination of these things. Currency is the
money that trades hands, from one to another. Often times, a bank is going to be the
source of forex trading, as millions of dollars are traded daily. There is nearly two trillion
dollars traded daily on the forex market. Should you get involved in forex trading? If
you are already involved in the stock market, you have some idea of what forex trading
really is all about.
The stock market involves buying shares of a company, and you watch how that
company does, waiting for a bigger return. In the forex markets, you are purchasing
items or products, or goods, and you are paying money for them. As you do this, you
are gaining or losing as the currency exchange differs daily from country to country. To
better prepare you for the forex markets you can learn about trading and purchasing
online using free 'game' like software.
You will log on and create an account. Entering information about what you are
interested in and what you want to do. The 'game' will allow you to make purchases
and trades, involving different currencies, so you can then see first hand what a gain or
loss will be like. As you continue on with this fake account you will see first hand how to

make decisions based on what you know, which means you will have to read about the
market changes or you will have to take a brokers information at value and play from
there.
If you, as an individual want to be involved in forex trading, you must get involved
through broker, or a financial institution. Individuals are also known as spectators, even
if you are investing money because the amount of money you are investing is minimal
compared to the millions of dollars that are invested by governments and by banks at
any given time. This does not mean you can't get involved. Your broker or investment
advisor will be able to tell you more about how you can be involved in forex trading. In
the US, there are many regulations and laws in regards to who can handle forex trading
for US citizens so if you are searching the internet for a broker, be sure you read the
print, and the information about where the company is located and if it is legal for you
to do business with that company.

FOREX TRADING STRATEGIES
If you’re a potential investment player who’d like to make it big in the business and
financial world, then you go for forex trading. The FOREX, also known as the foreign
exchange market is one of the largest financial markets in the world with and estimate
of $1.5 trillion turn-overs every day. Here are a few strategies on how to make it big in
the forex market.
Strategy One: Know your market. The best way to get advantage, earn profit and
minimize losses is to familiarize yourself with the market and how the whole system
works. In the forex market, the players are usually commercial banks, central banks
and firms involved in foreign trade, investment funds, broker companies and other
private individuals with large capital. With the speed and high liquidity of asset, most
companies engage in this business than in any other trading venture. Transactions are
done in a jiffy; there are no membership fees and there is always the allure and
promise of big, big profit.
Trading is done in pairs. The most commonly traded currencies are usually the US
Dollar, Japanese Yen, Euro, British Pound, Canadian Dollar, Australian Dollar and the
Swiss Franc. The more commonly traded currency pairs are the US Dollar and the
Japanese Yen, the Euro and the US Dollar, the Swiss Franc and the US Dollar. In Forex
trading, everything is speculative and virtual. There is no actual product being sold or
bought. The activity mostly consists of computed entries made on the value of one
currency against another. Say for example, you can buy Euros with US Dollar, hoping
that the Euro will increase it value. Once its value rises, you can sell the Euro again,
thus earning you profit.
Strategy Two: Learn the language. There are three concepts you need to know in the
currency market. Pips refer to the increase of one hundredth of a percent of the value
of the currency pair you are trading. Usually each pip has a value of $10 or $1. Volume
is the quantity or amount of money being traded at one particular time in the market.
Buying is the acquisition of a particular currency. A trader buys with the hopes that the
price of the currency will increase. Selling is putting a currency up for grabs in the
market because of a potential or possibility of a decrease in its value. There are also

two techniques of analysis usually used in this business – the fundamental and the
technical analysis. Technical analysis is usually used by small and medium players.
Here, the primary point of analysis revolves on the price. Fundamental analysis, on the
other hand, is used by bigger companies and players with higher capital as it involves
looking at the other factors affecting the value of a particular currency. In this type of
analysis, the player also looks at the situation of the country, particularly issues like
political stability, inflation rate, unemployment rate, and tax policies as these are seen
to have an effect on the currency’s value.
Strategy Three: Develop a sound trading strategy. Your trading strategy would depend
on what kind of trader you are. The basic thing with developing a trading strategy is to
identify what kind of forex trader you are. A good trading strategy should lessen, if not,
eliminate losses. Plan also the size of your transactions. It is better to conduct many
different trades than one huge transaction. Not only does it develop discipline, but it
also lessens any possible loss as only a fraction of the capital is affected. Part of a
trading strategy is developing the values of discipline and proper money management.
Strategy Four: Practice. Try paper trading, a great way to practice your skills, see how
the market works and get acquainted with the software and tools being used. There are
online brokers who allow free paper trades, which allows practice and experience
before doing it with real money.
Strategy Five: Choose the right forex dealer. Make sure that they are regulated by the
law. Take not of dealers with investment schemes that give out too-good-to-be-true-
just-false-hopes promises. Look at investment offers before getting started.
Forex trading may seem easy and manageable. But the emotional stress, the demands
and challenges of being a forex trader requires more than just the knowledge of the
market. It requires more than just a keen and sensible head for business. It’s all about
a game plan, a strategy.

Knowing about the different trading strategies in Forex will allow you to minimize the
risk of losing money and increase your chances of making huge profits.
First of all, it is important that you should remember that the Forex market can give you
the chance to earn a lot of money. It is a known fact that people who have traded in
this very liquid market have made millions of dollars almost overnight. You also have to
know that the Forex market is also a very risky market to be in. It is also a known fact
that many traders in this market have experienced losing a lot of money even to the
brink of bankruptcy or beyond.
This is why you should know the different strategies that are necessary in the Forex
market. Without these strategies, you will be like a blind man crossing a busy
intersection with no one to guide you.
First, you need to realize that Forex trading strategies are very different from the
strategies used in stoke trading. If you know about the different trading strategy in
Forex, then you will really earn a lot of money from this very large financial market.
One of the most useful strategies that you can apply in the Forex market is called
leverage. This is one of the most common strategies that you can use in the Forex
market and most Forex traders are familiar with the leverage strategy and many have
made large profits from this strategy.
If you already have a funded Forex account, you can use the leverage strategy to help
you trade more effectively in the Forex market. Leverage strategy works by giving you
100 times the amount of money that you can trade in your deposited account.
Therefore, if you do win, your income will also increase 100 times. This will allow better
results in your trades.

Another strategy that is commonly used in the Forex market is called the stop loss
order. This strategy is used to protect you from potentially losing a lot of money. This
works by letting you choose a predetermined point in the trade where you will not
trade. Therefore, it will eventually minimize the risks. However, if the movement of the
currency is not like what you actually predicted, you will end up losing potential money
making opportunity with this kind of trade.
Automatic entry order is another Forex trading strategy that you can use when you
trade in the Forex market. This will allow you to enter the Forex market automatically
when the price of a particular currency is right for you. The price is predetermined and
once it reaches that predetermined price, you will be automatically entered into the
trades.
These strategies will help you trade in the Forex market more effectively. It will
eventually help you minimize the risk and maximize your income earning potential.
However, you should always remember that you should know when you should use
these strategies. It is also important that you should remember that there is always the
risk of losing money when trading in Forex. These strategies will not necessarily
eliminate the risk but will minimize it.
MASTER TRADER

IMPORTANT DISCLAIMER
U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures and
Options trading has large potential rewards, but also large potential risks. You must be aware of
the risks and be willing to accept them in order to invest in the futures and options markets.
Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to
Buy/Sell futures or options. No representation is being made that any account will or is likely to
achieve profits or losses similar to those discussed on this web site. The past performance of any
trading system or methodology is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN
LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT
REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE
RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN
MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN
GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF
HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO
ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
No representation is being made that any account will or is likely to achieve profits or losses similar to
those shown. In fact, there are frequently sharp differences between hypothetical performance results and
the actual results subsequently achieved by any particular trading program. Hypothetical trading does not
involve financial risk, and no hypothetical trading record can completely account for the impact of
financial risk in actual trading.
All information on this website or any e-book purchased from this website is for educational purposes
only and is not intended to provide financial advice. Any statement about profits or income, expressed or
implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is
guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold the
authors/creators and any authorized distributors of this information harmless in any and all ways. The use
of this system constitutes acceptance of our user agreement.

Forex trading guide for beginners

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