Forex Trading 101

by ryan




Forex Trading 101

Welcome to Forex Trendy Review and thank you for trying to take your forex trading to new heights.

This is an article on the basics of Forex Trading.

If you are looking for the Forex Trendy system then go here.

Now, if you are unsure about what forex trading is all about, this article will get you up to speed. Even those who have dipped their feet in the fast flowing waters of forex trading, can learn something new here.

The foreign exchange market (forex, FX, or currency market) is a form of exchange for the global decentralized trading of international currencies. It basically means that the place where you can buy and sell foreign currency doesn’t have a centralized location; you can be anywhere and still take part in the transactions.

The foreign exchange market is unique because of the following characteristics:

its huge trading volume representing the largest asset class in the world leading to high liquidity;
its geographical dispersion;

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its continuous operation: 24 hours a day except weekends, i.e., trading from 20:15 GMT on Sunday until 22:00 GMT Friday;
the variety of factors that affect exchange rates;

the low margins of relative profit compared with other markets of fixed income; and
the use of leverage to enhance profit and loss margins and with respect to account size.

But David, how do I make money through forex and softwares like Forex Trendy, I hear you ask. Well, as you know all foreign currency prices rise and fall just like shares in the stock exchange. They are always traded in pairs. The most heavily traded pair is the EUR/USD and the pair that many traders like because of high volatility is the GBP/JPY.

If you buy 1 Singapore Dollar for 80 cents (USD) and then sell it for 90 cents (USD), you are making a profit of 10 cents. That is basically how you profit in forex trading and obviously you will be selling or buying more than 1 unit.

In USA, there are numerous forex brokers, like stock brokers, who can help you with the transactions. However, they do charge for their services, which mean that your profit margin is far lower. Online trading accounts solve this problem as their charge per trade is very low and you can trade from the comfort of your home.

The most important thing in the entire trading game is to learn when to enter and exit a trade. Traders have been trying to practice this one art for over hundred years through charts, candlesticks and sometimes even tarot cards.

The best way to practice timing and trading in general is to get a dummy account. Almost every online trader will give you the option to trade without real money. After you are used to how the market works, then it is time to start making your first trades with real money.

From there on, it is up to you which path you want to take for there are many. Also invest in a good trading software like Forex Trendy and enroll in a financial education course to learn how to best manage and reinvest your money.




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