Forex Trading is highly profitable it is still pretty hard to
digest all at once. Many beginners simply don’t have an IDEA about how to start
Forex. So by breaking the whole process up into 3 easy steps to give you a run-down of exactly how Forex works and what you need to
know.
1) – Forex Basics
Forex is simply the purchase and sale of different types of
currency, with the expectation that the purchased currency will increase in
value and earn you a profit when you sell it.
What I mean is that although you have two currencies on your
charts & sheets, you only really need to pay attention to the currency you
are purchasing & selling because that is the one that’s going to make you
the money.
A currency pair is basically the conversion rate between two
currencies. For example, the “EUR/USD” currency pair is showing as 1.3200 on my
screen. This means that with 1EUR you can purchase 1.3200USD. It’s basically 1EUR/1.3200USD.
See below example
of how you could make money from trading USD for Euros:
Yesterday you bought 1 EUR at 1.32
USD. Today you sold that 1 EUR for 1.33 USD.
Congratulation! You have just made
a profit of US $ 0.01. Now, US $ 0.01 is a very small amount but we can take
small amounts and create bigger profits out of them. In order to make the
bigger profit you should trade a bigger volume of money, like thousands or
millions of dollars.
Just imagine you bought 100,000 EUR
for 132,000 USD yesterday and sold it today for 133,000 USD. You would have
earned 1,000 USD on that trade in just one day!
With a leverage of 1:500 you need to invest only 264USD in order to trade 100,000EUR
and earn 1,000 USD.
So, in really simple terms, you
need to buy currency which is going to shoot up in price and then sell it while
the price is high.
2) – Brokers / Trading Platforms
If you’re
ready to start your forex trading business then you will need to use a Forex
Broker / Trading Platform. If you don’t know what they are, here’s a quick
rundown:
- A Forex Broker – is an organization which arranges the purchase & sale of currency. Because no commission is charged on trades, brokers may add markup to their prices.
- Trading Platform – is a software which allows you to perform your trading with relative ease.
We recommend you use a trading system called “Exness”
because, it is an incredibly simple and easy to use system which gives you
access to all your past data as well as current data.
Here’s some of the features which makes Exness our
recommended Forex Trading System:
- A forex Trading Account to trade different instruments.
- A Wide range of Deposits and Withdrawals method i.e Credit Card, Pay Pal, Liberty Reserve, WMZ, Money Booker etc.
- No commissions and no bank charges on trading, depositing or withdrawing funds.
- Highest leverage in the industry.
- Start trading immediately with a deposit of as little as $10. Lowest margin ever.
- The Best Forex Trading Conditions in the market.
- The Metatrader4 forex trading platform
- Current data and information on the market on a regular basis.
- Freeze rate option. You can freeze the rate you wish to buy/ sell as the market is changing.
With
EXNESS, you can be sure that your trades are “in safe hands”. There’s something
else which makes Exness an extremely POWERFUL platform to use… and that’s the
leverage it offers YOU.
In the
Forex world, “leverage” is the amount of money you can control in relation to
your own. Here’s an example – you open an account with a $100 deposit.
Your broker
then takes that $100 deposit and allows you to trade with $100,000. This now
means that you now have a leverage ratio of 1000:1.
So “Exness” offers some of the best
options of leverage in the Forex world. You CAN make lots more money with
leverage…
3) – Strategies & Systems
Although the number of factors contributing to the price
oscillations of a currency pair is certainly large, these can be grouped into
two general categories. The first main influence is given by the economical
stability of the two countries involved and financial news that are regularly
released during press conferences; the second great influence are trend patterns
that are subject of advanced mathematics and probability concepts, and can
largely be attributed to the psychology of the traders involved in Forex market.
You don’t NEED to know all the latest “secrets” to
trade forex. You just need to apply common sense and always look at the wider
picture. You may know everything there is to know about how to read charts and
how to spot “indicators”.
The key to
making good money in Forex trading market is knowledge and experience. If you
are prepared to invest some time in educating yourself, you can benefit
financially from Forex trading at Exness.
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