Forex For Beginners: The Best 10 Advice For Learning How To Make Money With Online Forex Trading And Create A Passive Income Working From Home by Simon Jordan

Forex For Beginners: The Best 10 Advice For Learning How To Make Money With Online Forex Trading And Create A Passive Income Working From Home by Simon Jordan

Chapter 1: An Introduction to the World of Forex
Trading
Forex is a foreign-currency and foreign-exchange portmanteau. For a wide
range of reasons, typically for trade, trading, or tourism, Foreign Exchange
is converting one currency into another currency. The average was even
more than $5.1 trillion in daily forex trading volume, as per the latest
triennial report from the Bank for International Settlements, a global bank
for national central banks. Not even all of the combined stock markets
around the world come close to this. Yet what would it imply by that? Take
a look at forex trading in the next chapters, and you will find some exciting
trading opportunities which are not available with other investments.
1.1 What Is Forex Trading?
Just like stocks, currency can be traded based on what you think its value is
(or where it is headed). But the significant difference with Forex trading is
that you can swap just as quickly upwards or downwards. If you think that
the value of a currency will increase, you can buy it. If you think it's going
to decrease, then you can sell it. For such a broad market, it is much easier
to find a buyer when you sell, and a seller when you buy in other countries.
You may read in the papers that China is devaluing its currency to attract
more foreign business into their country. If you think this trend will
continue, by selling the Chinese currency against some other currency, say,
the U.S. dollar, you could make a forex trade. The higher your profits will
be when the Chinese currency devalues against the U.S. dollar. If the value
of the Chinese currency increases while you have your selling position
open, then your losses rise, and you want to get out of the particular trade.
Forex, or foreign Exchange, can be described as a network of buyers and
sellers who move currency at an agreed price among themselves. It's how
individuals, businesses, and central banks convert one currency into another
– if you've ever traveled abroad, you've probably made a forex transaction.
Currencies are traded mostly in the foreign exchange market. For most
people, currencies are relevant, since currencies need to be exchanged to
conduct international trade and commerce. If you live in the U.S. and want
to buy cheese from France, either you or the relevant company you buy
cheese from has to pay the French in euros for the cheese. This means the
U.S. importer has to swap the U.S. dollar equivalent value into euros. The
same applies to travel. A French tourist in Egypt can't pay to see the
pyramids in euros, because it's not the local currency. As such, the tourist
has to swap the Euro at the local currency's current exchange rate.
One peculiar feature of this international market is that there is no central
foreign-exchange marketplace. Today, currency trading is carried out
electronically over-the-counter (OTC), meaning all transactions take place
through communications networks amongst traders across the world, rather
than through one centralized Exchange. The market operates 24 hours a
day, five and a half days a week. Currencies are exchanged worldwide in
London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore,
Paris, Sydney, and other major financial centers across almost every time
zone. That means the forex market starts in Tokyo and Hong Kong when
the U.S. trading day ends. As such, the forex market can be highly
competitive every time of the day, with price quotes constantly changing.
Although a lot of foreign Exchange is performed for practical purposes, a
large proportion of currency conversion is conducted to profit. The amount
of currency exchanged each day can make extremely unpredictable price
fluctuations of certain currencies. This uncertainty can make Forex so
appealing to traders: making high profits more possible and increasing the
risk.
It is essential to practice in an environment as dynamic as the Forex
properly. Whether you're a seasoned industry veteran or brand new to
currency trading, being ready is key to successful profit-making.
That's a lot better said than done, of course. Your on-the-job preparation
must never stop to ensure you have the best shot at forex success. In the
fast-paced forex world, establishing robust trading strategies, joining expert
webinars, and pursuing your market education are ways to stay competitive.
If your goal is to become a reliably successful forex trader, then you can
never stop your education. As the adage goes, practice makes perfect; even
for active traders, perfection is always elusive; it should be routine to be
prepared for any session.
The Forex is the world's largest marketplace for money. Having a daily
turnover of around $5 trillion, the Forex is a global trading platform where

Forex For Beginners: The Best 10 Advice For Learning How To Make Money With Online Forex Trading And Create A Passive Income Working From Home by Simon Jordan