You may have heard about Forex trading from a friend or seen an advertisement on the internet or TV about it. So, you think you might be interested in learning more about the Forex market and about Forex trading because you heard you can make some fast money participating in it. Let?s discuss exactly what Forex trading is and dispel some common myths and misconceptions about it.
1) What is Forex trading?
Forex trading is the use of the Foreign exchange currency market to buy and sell currencies. When you buy one currency you automatically sell another one at the same time, so in the Forex market, currencies are quoted in pairs. An example of this is the EURUSD or the AUDUSD; when you buy the EURUSD you are buying euros and selling U.S. dollars. When you sell the AUDUSD you are selling Australian dollars and buying U.S. dollars. So the basic point of Forex is to buy and sell currencies.
2) Can I make money trading Forex?
Yes, you can make money trading Forex, but it is not easy. In fact, most people who attempt Forex trading actually lose money because they make two very big emotion-base trading mistakes. The first mistake is over-trading; over-trading is a near constant temptation that traders face because there is no boss or anyone forcing you not to trade. As a result, trading the forex market can be a little bit like having a slot machine in your house; all you need to do is open up your charts and press your mouse button to potentially make (or lose) money. However, trading is not gambling because you have a much greater chance of making money in the markets due to the fact that you can learn to analyze the market and trade it with an effective trading edge.
3) How can I learn to trade Forex?
So now that we have answered the question ?what is forex?? we can move on to learning to trade the Forex market. ?Learning to trade the Forex market is not the easiest thing in the world because there is a ton of information on the internet all claiming to be the best way to learn how to trade. In reality, you are going to encounter a lot of Forex trading software systems, indicator trading systems, and other fancy sounding and looking trading methods that make bold claims. It is unlikely that a rigid indicator or software-based system is going to be the only thing you need to trade successfully. Trading is a dynamic and ever-changing profession, since the markets are dynamic and ever-changing. Therefore, you need a trading method allows you to take advantage of the daily price dynamics in the Forex currency market.
In closing, now that you know a little bit about forex trading is and how to go about learning to trade, it?s time to do some research and find a good resource to learn from. Good resources generally include learning from real successful traders and simple straight-forward trading methods that don?t seem overly-complicated or make big promises.
Source: http://finance.freshpizzatoday.com/2012/02/24/what_exactly_is_forex_currency_trading_ezine_ready/
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