Thread: What is Forex?

Forex is the name for the currency trading market, meaning foreign exchange, and it is the biggest and fastest growing market exists. It has a daily turnover of more than 3 trillion dollars, and the players are commercial and central banks, institutional investors, corporations, funds and privet investors just like us.
As in all markets, there are goods traded, and here it is currencies of many countries: you can buy US dollars with Euro, and vice versa. One think to understand here is that you don't buy or sell physically. All transactions are with your own base currency.
An important term in the Forex market is leverage. The meaning of leverage is the ratio of investment to actual value. It is when you use 1000$ to trade with a 100,000$ value, or in another words, 1:100 ratio. The actual amount you use (1000$) is what you risk, but the potential profit is much greater.
The principal in Forex trading is simple: buy low & sell high… weather you buy or sell, you can profit from the currency exchange changes. The fact that it does not require physical purchase of currencies, and that the daily changes are around 1% makes Forex trading very appealing.
Regarding losses, well, you can lose only what you invested. So, it is extremely important to risk only what you can afford to lose.
The correct steps for beginners are first to learn everything possible, then sigh up with a trading platform or a broker, trade in demo mode for as long as it takes, till you show continues profits, and then deposit the amount you wish to have in your margin account to invest. After that, you can start trading.
With every trading platform you choose, you can monitor your deals online, and it is essential you do that.
For more information, tips and tools visit: http://forex-tips-and-more.info. Good luck!

Most traders lose because they lack discipline and money management - but they're very often right about market direction. It's the trader's inability to maximise these opportunities when they're trading the FOREX - and stay with the trend, that makes them lose money.

Many traders are looking to pick tops and bottoms, and never focus on trend following. Picking tops and bottoms is impossible. You can't predict the turning points in FOREX trading - so you need to change your focus to trend following, not prediction.

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Good luck!