Lesson 1: Getting Start With FOREX
Welcome you to our website Teach Me FX Trading. I know you are here because you have some interest about Forex trading. We hope to teach you everything about Forex and How to become a good trader. So lets start with Lesson 1.
Forex:
Also known as foreign exchange, FX or currency trading, is a decentralized global market where all the world's currencies trade. The forex market is the largest, most liquid market in the world with an average daily trading volume exceeding $5 trillion. All the world's combined stock markets don't even come close to this.
Forex Transaction:
If you've ever traveled overseas, you've made a forex transaction. Take a trip to France and you convert your pounds into euros. When you do this, the forex exchange rate between the two currencies—based on supply and demand—determines how many euros you get for your pounds. And the exchange rate fluctuates continuously.
A single pound on Monday could get you 1.48 dollars. On Tuesday, 1.50 dollars. This tiny change may not seem like a big deal. But think of it on a bigger scale. A large international company may need to pay overseas employees. Imagine what that could do to the bottom line if, like in the example above, simply exchanging one currency for another costs you more depending on when you do it? These few pennies add up quickly. In both cases, you—as a traveler or a business owner—may want to hold your money until the forex exchange rate is more favorable.
Opportunities:
Just like stocks, you can trade currency based on what you think its value is (or where it's headed). But the big difference with Forex is that you can trade up or down just as easily. If you think a currency will increase in value, you can buy it. If you think it will decrease, you can sell it. With a market this large, finding a buyer when you're selling and a seller when you're buying is much easier than in in other markets. Maybe you hear on the news that China is devaluing its currency to draw more foreign business into its country. If you think that trend will continue, you could make a forex trade by selling the Chinese currency against another currency, say, the US dollar. The more the Chinese currency devalues against the US dollar, the higher your profits. If the Chinese currency increases in value while you have your sell position open, then your losses increase and you want to get out of the trade.
In a simple way:
Above image shows how eur/usd rate changes withing few hours. At the point A & C, candle graph shows eur/usd rate in top and at the point B the rate is bottom. It means point A to B rate decreases and B to C increases. Reason for that is after the point A market demand for eur decrease and after the point B market demand for eur increase compare to the usd. So point A and C is better for to start sell trade and point B is better to start buy trade. So the important thing is make trading better time. Once you go through our lesson series and individual practices giving by us, you will be a success Forex trader.
What you need
So, as I explained above, here you no need good mathematical or analysis knowledge to become a successful Forex trader. Patience is the most important thing to become success in this journey. Lot of people learn about this well and start trading, but they lose their patience and it cause to lose their investment.
Second important thing you should have is good investment. Because all of the trading decisions depend on your investment. High investment means you have good protection for your account and reduce risk of trading. (range of 500$ to 10000$ investment is good) I will explain about this well in up coming lessons.
Good day...!!!
Opportunities:
Just like stocks, you can trade currency based on what you think its value is (or where it's headed). But the big difference with Forex is that you can trade up or down just as easily. If you think a currency will increase in value, you can buy it. If you think it will decrease, you can sell it. With a market this large, finding a buyer when you're selling and a seller when you're buying is much easier than in in other markets. Maybe you hear on the news that China is devaluing its currency to draw more foreign business into its country. If you think that trend will continue, you could make a forex trade by selling the Chinese currency against another currency, say, the US dollar. The more the Chinese currency devalues against the US dollar, the higher your profits. If the Chinese currency increases in value while you have your sell position open, then your losses increase and you want to get out of the trade.
In a simple way:
What you need
So, as I explained above, here you no need good mathematical or analysis knowledge to become a successful Forex trader. Patience is the most important thing to become success in this journey. Lot of people learn about this well and start trading, but they lose their patience and it cause to lose their investment.
Second important thing you should have is good investment. Because all of the trading decisions depend on your investment. High investment means you have good protection for your account and reduce risk of trading. (range of 500$ to 10000$ investment is good) I will explain about this well in up coming lessons.
Pls, don't depend with the auto trading software, analyzing software, and some other tools. Because Forex market behaviors depend with the supply and demand each currency have. So just a tool not enough for that and your knowledge about those things is most important. Pls, stop paying for companies and join with us to lean everything A-Z and get our free signals and specific strategies.
This is ending of Lesson 1 and I hope you have simple understand about Forex market and pls, add comment if you have any question related with Forex. See you with Lesson 2.Good day...!!!
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