WHAT IS FOREX TRADING?
The term Forex Trading is very huge and is having about 100 000 to 1 million average searches every month on Google keyword searches. Many people are searching for a way to generate income on a daily basis and others are searching for greener pastures. Many people around the globe view Forex Trading as a path to be rich or an answer to their dreams; however that is not simple as people always speculates.
I once said in my article that Forex Trading is like picking money on the floor and not trading is like leaving that money for someone to pick it, I mentioned this intentionally and have made it very clear that you can only literally conquer the Foreign Exchange Market when you have proper learning and understanding about the market. There are secrets that needs to be unfold in the Forex market, however don’t worry because we are going to reveal them in our next articles, you should keep in touch with us.
The term Forex stands for the global foreign exchanges of currencies, meaning currencies of one country are exchanged with currencies of other countries. Currencies of every country differ from each other based on value, example; the value of a USD is not equivalent to the value of Euros. Every country currency is having its own value and power which is determined by the monetary policy and affected by certain economic and political factors.
Forex Trading is the commercial transaction of buying and selling of different currencies mostly executed for profit purposes. People buy and sell currencies when migrating between countries but in most cases Forex Trading is utilized by people known as market participants:
WHO ARE MARKET PARTICIPANTS?
- Currency traders
- Financial companies
KNOW HOW TO TRADE CURRENCIES AND CRYPTOCURRENCIES
It is very easy to trade currencies these days; currencies can be exchanged online or through the networking of computers using Forex Brokers who will execute the exchange on your behalf, they will charge you the difference between the bid and ask price (technical known as spreads).
There are many Forex Brokers who give traders an opportunity to use their trading platforms for free, being a web trader or a Meta trader and others platforms.
Traders can now use their devices like cell phones, tablets, laptops and others to trade online, meaning it is very easy to generate profit while you are at home and also it is very easy to lose money while you are at sitting at home. I have mentioned it earlier on other articles that in order to be a successful trader you should use other methods to minimize your risks or you should use the Forex trading signals or Forex Robots .
WHAT ARE THE FOREX ROBOTS?
Forex robots are computer programmed software that let you know when to access or egress the market. They will always alert you the time to enter the market and also they will alert you when to close the open positions. Mostly the robots are designed to alert you some crucial information that will be profitable to you. Forex brokers use this robots service on their subscribers sometimes they will charge traders to use this service.
Most of Forex Traders who used these robots have claimed about 70% success rate in the past few years and this make it the best strategy ever in the Forex world. For the past years it was proved that about 1 to 5 % of people generate profit in the Forex market while the other 94 -99 % incurred losses, this previously made it impossible for people to break the market however thanks to the new creation of Forex robots , the winning percentage of traders has eventually increased from 5% to 70%, meaning that the chances of generating profit are too much when compared to losses.
Most Forex brokers are having the Forex demo account or the Forex practice account for their traders to practice and get enough skills to trade on a real account. With the use of a demo account you are preparing and equipping yourself to understand the market better; you will also know your strengths and weaknesses.
Trading on the demo is not real because every profit and losses that you make does not affect you on real life. Mostly you will be given about $ 50 000 demo amount to use, this amount will be credited on your demo trading account upon opening an account.
ONLINE FOREX TRADING
People should always understand that Forex Trading is different to betting, meaning you don’t have to guess where the market will go. You should always familiarize yourself with the forces that drives the market on a daily basis or in simple you should understand the usage of the economic calendar.
With proper education you will always conquer the market. Make sure that you do not trade with money that you won’t afford to lose, the Forex market is very liquid and volatile m your money is always at risk, remember that Forex trading is not investment for your money to mature.