Forex Mentors

FOREX means ‘foreign exchange’ and basically pertains to the exchanging of currency from one to another. For example you’re going to any European country with Euro currency; you will have to exchange your U.S dollars to Euro for the expenses that you will use in Europe. Notice that the value of U.S dollars is higher than in Euro and the value changes from time to time. Every time you use your currency to buy another currency you participated the FOREX market. FOREX is the largest financial market in the world with its $4 trillion world’s daily trade volume, compared to some big stock market in the world which is only about $60 billion daily trade volume.

This trading seems to be confusing because you’re not buying any product here but you’re buying money. Money’s value is the representation of a country’s economy, so when you buy another country’s currency you’re actually buying a share in their economy. Generally, the exchange rate of a currency compared to another currency is the reflection of their country’s economic status.

In FOREX, currencies are always traded in pairs; example of pair is USD/EUR or U.S dollars versus European Euro. Below is the table of major currencies that are traded in FOREX. It doesn’t mean that they are the only currencies available in the FOREX market, because all the currencies of all countries all over the world can be traded in FOREX. Below the table of currencies, you will see the major currency pairs that are being traded. Other currencies and pairs that are not included in the two tables are called the exotic pairs.

The good thing about FOREX trading is the wide range of its market; you can trade FOREX anywhere in the world because it has an online system. For those who wanted trading in FOREX online you have to consider a lot of factors to do it properly. Although, it is the largest financial market in the world, not everybody can earn from it, most traders are simply feeding their money to the FOREX market.

In fairness to those wise traders, FOREX can give them above average income and gain. Even if you’re an average earner, you can still trade in FOREX as many rich people do. There is a simple rule in trading on it for beginners; don’t trade the amount you can’t afford to lose. For rich people who keep trading in FOREX unwisely, watch out for your account, you might get broke if you keep it that way.

If you wish to trade in FOREX online, the first thing that you should do is search for knowledge. You should comprehensively understand all about it. You should learn it from basic to the most complicated. A formal training or course is a great way in learning FOREX.

You will be guided appropriately by a master trader who has been trading successfully for years. You may decide to teach yourself through research and reading, but for me it will not be enough. In the middle part of learning FOREX you will realize that to become a successful trader is all about techniques. Those techniques may be hard for you to distinguish by just reading them; it must be applied and studied.

When trading FOREX online, you will need a trusted broker so you can start trading and opening a trading account with them. Check very well the reputation of the broker if you want your money to be handed safely.  Most brokers have virtual accounts that you can use to practice your techniques and decision making. This virtual account is almost the same as the live or real account. Only that in live account you will be using your own money but in virtual account you will use virtual money, meaning if you lose on it, your financial status will never be affected. Virtual account or demo account is very useful for beginners, never ever trade if you’re not good in virtual account unless you just want to feed your money to the FOREX market.

In trading you must master first one way of trading before another. The ways in trading FOREX are spot, option, futures, and exchange traded funds. Spot market is a way where in you will have to trade currencies on the spot, or on its current value. Option gives you the chance to trade your stock in specific dates. Futures are almost the same with option; you will trade using the value of the currency in the future or in specifies date. Exchange-traded funds are the newest way in trading with FOREX and it can be combined with certain assets at a given time.

You must also decide the platform that you will use and master it. Platform is how your computer screen will be displayed during online trading to help you in good tracking. You can choose the platform that you can be well-adapted and master it during the demo account. You must also choose the charting system that you will use to display the movement of currencies to make technical analysis. When you are ready and became successful in mastering the demo account, you will now have the confidence in trying the live account. Remember to use the platform that you used during the virtual account.

When you are ready enough to trade in live account, limit your investment but be brave enough to invest. It means, don’t invest too small amount if you know to yourself that you’re good enough. Put the average value and make it grow. Don’t invest too much that you can’t afford to lose, and don’t let greed overcome your strategy. Secure your investment and do it wisely. Keep on learning and mastering your ways and strategies, and master one way before the other. Some people who barely understand FOREX compares it to gambling. FOREX is not gambling, it’s actually a business that can give you good revenue. Gambling is a game of chance seeker, while FOREX is the game of a wise.