Can You Make A Killing In Forex?

By: Van Whitsett

Despite what some will have you to believe, trading is a very tough business. Without the sharp, competitive edge to survivie and succeed, you will be eaten alive by the forex market.

First, some basics:

What is Forex Trading?

Foreign Exchange Trading, or Forex Trading, is the financial market of the world. Selling and buying currencies is what forex trading is all about. Forex generally used by businesses and entrepreneurs looking to conduct international business and transactions.

To give you an example of Forex Trading, let us say that the United States is selling products to Canada. Canada would have to convert their money, the Canadian Dollar (CAD) into the United States Dollar (USD) to perform the transaction. So, essentially, what is happening is that Canada is buying USD currency with CAD currency for the conversion.

How can I trade in the Forex Market?

The Forex Trading market, works very similar to our stock market, with the exception that it deals with currencies. In order to trade on the Forex market, you must have a broker. Just like with the stock market, not just anyone can enter the market for trade. The Forex Market does differ from the stock market in that there is not a centralized exchange or clearinghouse to trade from. You must have a Forex Broker in order to take part in the trading.

How can I make a Profit?

To make a profit you will need to obtain a Forex broker specialized in the area. In some cases, in less serious trading cases, some people will use their local bank to handle the trade. However, if you are looking to hedge risks, convert receipts or profit at all in the Forex market, the first thing you need is a broker.

It takes a large amount of experience to begin earning large profits in Forex trading.

Some people enjoy a thirty-percent return on their investments each month. To do this you must learn everything you can about Forex trading and speak with your broker about investment strategies. The internet can be a valuable tool in this area as well, there are many online Forex trading courses where you can learn just what it takes to become a competitive, profitable investor.

Some Meat and Potatoes:

One of the most destructive lies that have been spread for years about trading by the so-called trading experts, is that to succeed in trading, you must forecast or predict the future.

Nothing could be further from the truth. The fact is that trying to predict future price movements will certainly lead to unnecessary frustration and failure. To be successful in forex trading, you only need to do two things: Identify the trend & join the trend with the precise timing.

You don't need confusing or complicated analysis to trade successfully, dispite what others may say. Systems that are based on logical, scientifically sound, and well-tested forex trading concepts have been performing extremely well and will continue to do so for many years to come. This is a fact that beginning traders (and seasoned traders as well) need to understand and adopt if they want to become more successful.

What Does It Take To Be Successful In The Forex Market:

* I can't repeat this enough, but here it is one more time: You don't need to predict anything to make money on the markets

* It is possible to identify each day's hottest trades and exploit them

* To be successful, one needs to take advantage of big trends and ride them until the end

* It is possible to make more than 600 pips a month spending as little as 2 minutes a day!

Forex Scams:

1. Stay away from opportunities that seem too good to be true

Always remember that there is no such thing as a "free lunch." Be especially cautious if you have acquired a large sum of cash recently and are looking for a safe investment vehicle. In particular, retirees with access to their retirement funds may be attractive targets for fraudulent operators. Getting your money back once it is gone can be difficult or impossible.

2. Avoid any company that predicts or guarantees large profits

Be extremely wary of companies that guarantee profits, or that tout extremely high performance. In many cases, those claims are false.

The statements that follow are most likely untrue:

"Whether the market moves up or down, in the currency market you will make a profit." "Make $1000 per week, every week" "We are out-performing 9omestic investments." "The main advantage of the forex markets is that there is no bear market." "We guarantee you will make at least a 30-40% rate of return within two months."

3. Stay Away From Companies That Promise Little or No Financial Risk

Be suspicious of companies that downplay risks or state that written risk disclosure statements are routine formalities imposed by the government.

The currency futures and options markets are volatile and contain substantial risks for unsophisticated customers. The currency futures and options markets are not the place to put any funds that you cannot afford to lose. For example, retirement funds should not be used for currency tradinding.

'Nuff said!

Foreign Exchange
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