Forex Knowledge: In some respects Forex has been around us, because there was no electricity in caves. Long ago, people traded currencies always had: whether it was food, animals or some bright minerals. With the creation of the modern currency (coins and then on paper) different nations traded one currency for another. In modern times currencies are widely traded by major financial organizations worldwide. The birth of a retail market in the mid-1970s allowed non-commercial players in Forex trading. However, the most crucial change in the industry came in 1996 when trading Forex went online.
Now, the Forex child grew and became true giant. More than $ 4.5 trillion is traded daily in the Forex market, where almost $ 1 trillion belongs to the activity of traders such as me and you. These numbers reinforce the reputation of Forex and we count on ample opportunities to make a profit with Forex. However, with the benefits come the dangers. Not all companies that give classes on Forex tell you about them – these people need to be attracted you to trade without thinking.
In this article, I want to give you the basics – five steps to put your thinking along the path of desirable gains in this space of the largest in the world market.
A trade makes me a millionaire. Mr. Soros Salute! This is that brokers want you to think when you are about to start with Forex. Relax and refer such words called “True Lies.” It is not a Schwarzenegger film, but a twisted reality. You can get rich in Forex – it is “true”. However, “the lie” is that it comes easy way. If you are not disciplined, smart and patient, your chances of winning are close to those in lottery. Responsibly approach the market with a balanced framework, set your goals and stick to them. As in fishing, success comes to those who wait and then strike.
I basically do not mean that you have to trade Forex after having a good breakfast. No. Before any penny in this company, think whether you are ready to lose it. Do not leave your family without any food or clothing after betting all in “black” and losing “zero”. Traded a capital that you can afford to lose without affecting their life together strongly. As a trader, I have to admit – more than 80% of new traders come to losses. So you think twice. If you are ready to say “goodbye” to their investments and still go ahead, you have the opportunity to enter that 20%.
As if you had not paid their hard-earned some sort Phillip who had only met once. You do not jump into a risky and volatile as the Forex market without knowing “who”, “what” and “why”. His full investigation on the subject should include all aspects of the market: how developed, where it goes, etc. FX studies history more carefully than I put in the first paragraph. Then you could talk to other traders and listen to what they say (for example, go to the forums) on worthy business practices, best FX tools and services, the safest advice for predicting market movements, etc.You also learn how to read charts, understand and distinguish Forex news, and (most importantly) learn their strengths and weaknesses to work with them from now on.
The road to success in Forex (if I can call it like this) is thorny question why you their capital with care. Do not put all hopes on a trade – Use certain percentage of their capital. Although these figures are subject of debate, but take into account a loss, try to predict where your account will be after you lose a trade. My bill here: use stop-De-loss and Take-Profit, trades with smaller operations, “mate” their avaricious, and not think about overcompensate losses. Loss means loss. Expanding its stop-De-lost hope that the market will invest itself is worthless. Usually it does not. His “best friend”, a trend could become your worst enemy. I also recommend you trade currencies different paraa diversify risks in terms of trade and currencies.
Like a rock band from the provincial town, known for musical prize: they not have finally won, but now have become mannered and arrogant creatures. As for traders, there is nothing good for them to be overly excited and anxious shops. At any given time they can give reverse gear. If you leave your Forex success into your head, they change their business philosophy so you could take risks that has ever taken. Be consistent and you get it one after another. Like the deserts are grateful for the rain, I am grateful for what you want. And continue with the current scheme if you take profits. Stick to your plan and this deaf to their feeling move calling Take-profit or Stop-de-EXTEND LOSSES.
As “Epilogue” I would say that the Forex market is immensely large. You can quickly pull profits and make huge profits. However, if you bet “the black” because it is his favorite color, you can win at the casino, but with Forex at the end. Go to it as a business (with equal responsibility) and return to you with profits.