From Zero to Hero in FOREX

To be rich is dreamed everybody, but not everybody knowing how to start it. Here we can start rich dream with Forex.

Forex? what is forex?

The foreign exchange market (forex, FX, or currency market) is a form of exchange for the global decentralized trading of international currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends. EBS and Reuters' dealing 3000 are two main interbank FX trading platforms. The foreign exchange market determines the relative values of different currencies.[1]

The foreign exchange market assists international trade and investment by enabling currency conversion. For example, it permits a business in the United States to import goods from the European Union member states especially Eurozone members and pay Euros, even though its income is in United States dollars. It also supports direct speculation in the value of currencies, and the carry trade, speculation based on the interest rate differential between two currencies.[2]

In a typical foreign exchange transaction, a party purchases some quantity of one currency by paying some quantity of another currency. The modern foreign exchange market began forming during the 1970s after three decades of government restrictions on foreign exchange transactions (the Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states after World War II), when countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixed as per the Bretton Woods system.

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;
    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.

As such, it has been referred to as the market closest to the ideal of perfect competition, notwithstanding currency intervention by central banks. According to the Bank for International Settlements,[3] as of April 2010, average daily turnover in global foreign exchange markets is estimated at $3.98 trillion, a growth of approximately 20% over the $3.21 trillion daily volume as of April 2007. Some firms specializing on foreign exchange market had put the average daily turnover in excess of US$4 trillion.[4]

The $3.98 trillion break-down is as follows:

•     $1.490 trillion in spot transactions
•     $475 billion in outright forwards
•     $1.765 trillion in foreign exchange swaps
•     $43 billion currency swaps
•     $207 billion in options and other products

From: http://en.wikipedia.org/wiki/Foreign_exchange_market

Is Forex a Suitable Business for Everybody?

I am an internet marketer and blogger more than a forex trader but forex is something that I also make money with it and I know a lot about it. Forex is a really different business. To make money with Forex, you have to know the technique and have enough experience otherwise you lose more than what you make.

But in other businesses like internet marketing, you can make some money even if you are not an internet marketing guru.

The good thing with forex is that you don’t have to be worried about competition. Unlike all other businesses that competition makes tougher conditions for everybody, the more people work on forex the more money everybody will make because it will make more volatility and movements in the market and volatility and price fluctuation is what we make money through it.

If you don’t know what the forex is, follow the link below: How to Make Money with Forex?

So forex is a good business but is it a suitable business for everybody?

To become a forex trader, first you have to learn it. It is not very hard to learn forex. There are enough free information over the internet. You just need to spend a few months to learn everything. But the more important part is the experience. You have to learn how to use your knowledge to trade and make money.

Forex is like driving. You can sit at home and read a lot of books about driving and know about it more than a driver who has a 30 years experience. But as long as you don’t practice and don’t drive, you will not become a driver. To be a good driver you also need to have a healthy body and mind otherwise you will make problems for yourself and the others. This is true about forex too. Not everybody who knows the techniques theoretically can be a good forex trader.

You have to have three things to become a good and successful forex trader:

1. Knowledge
2. Experience
3. Suitable mental and psychological condition

If you lose more than what you make in forex, you don’t have at least one of the above essentials.

As explained above, the knowledge can be gained easily and for free through the internet.

The experience can be gained through practicing with the demo account. Any of the forex broker companies offer free demo accounts that enable you to practice and learn to use your knowledge practically.

But what about the last factor? Suitable mental and psychological condition!

You can lose money in forex even when you have enough knowledge and experience. Why?

What kind of people, with what kind of personality, lose more in forex even when they have enough knowledge and experience?

1. Impatient people:

If you don’t have enough patience when you work or when you wait, you will have problems in forex. Forex needs a lot of patience. Sometimes you have to sit at the computer and watch the charts for several hours. Those who don’t have enough patience, get tired very soon and start entering to the trades while there is no clear and suitable signal and it is not the time to get in a trade. Then they will have to close a wrong position while they have already lost a lot of money.

2. Greedy people:

Those who are greedy are big forex losers. Greed cause you rush to enter to a trade when it is not the time because you think that the others are making money and you have to do it too. So you don’t wait for a clear signal and you just dive to a trade with this hope that you will make money whereas in most cases you will choose the wrong direction.

On the other hand, greedy people stay in trade for a long time and don’t end it when it is time to end. They keep the position to make more money but the market will change the direction suddenly and all the profit they had in their hand will be lost.

3. Fearful people:

Fear is the biggest problems in forex trading and generally fear is the biggest problem and obstacle in all the businesses. Fear keeps people from taking risks and those who have a lot of fear can not use the opportunities because they are always afraid of losing. They wait and wait and wait and lose the opportunities one by one and then get tired and try to overcome their fear and so they enter to the wrong direction before proper market analyzing and finding good signals. What will happen then? They lose money.

4. Emotional people:

If you are a person who makes his decisions emotionally and not wisely, logically, analytically, then forex is not for you because you will lose a lot. Forex is a technical and scientific business. It works according to the scientific rules and analysis. Forex traders use special indicators and signals to decide to buy or sell. They act only when they see proper signals and not when they feel that the price will go up or down.

Something you feel can be wrong and so if you trade according to what you feel, you lose.

Emotions are good but not in business, forex or stock trading. If you are an emotional person, you should not try forex trading unless you learn to control your emotions and use your knowledge.

How can you control your hastiness, Greed, Fear and Emotions in Forex trading?

This question can not be answered in just one article and I will write more articles about any of the above problems but here is some tips:

If you are a hasty person and this has made problems for you both in your life and forex, you have to practice Yoga, meditation or maybe hypnotism to become able to control your hastiness.

In case your hastiness can not be controlled at all, you may have to see a doctor and check your endocrine hormones like Thyroid, Adrenaline and Noradrenalin.

To control your greed, you have to make a strict discipline for yourself and try to be stuck to it. For example do not make more than a limited number of pips everyday or in each single trade. Tell yourself that you are not allowed to make more than - for example - 20 pips everyday or 5 pips in each trade and as soon as you reach the limit, turn off your computer or close your trade even if the market is still hot and you can make more or your trade is doing well and going to your favorite direction.

To control your fear, you have to spend enough time on learning and practicing with the demo account. You have fear because you don’t have enough confidence about your trading skills. You have to make hundreds of trades on the demo account to make sure that you have learnt the methods completely. Then you need to start with the real account and trading with your money but with a very small amount.

You have to keep on trading with a very small amount of money for several months and when you see that you can make profit and the number of your successful trades is more than your bad trades, you can increase the amount of the money little by little.

Keep in your mind that Forex and stock trading are all the matter of taking risk. The only thing that you have control on is the amount of the money you put in every trade and also the amount of the money that you let be lost. The rest is not in your hand.

From: http://www.forexoma.com/is-forex-a-suitable-work-at-home-job-for-everybody/

The Reasons Why Forex Is a Good Business

It doesn’t really matter how you hear about Forex or how you find yourself attracted to this new possible avenue. Whether your are fed up with your job, or you may be looking for a change of direction, the first thing you will identify is that your current job has a financial limitation. If you have a job or you have trained for a specific job, that job will equate to a fairly specific salary bracket. Of course, you will be paid more if you are a vet for race horses than if you are a country vet but even then, that bracket will remain fairly fixed for the rest of your career. In Forex, your salary will only be limited to the size of your trading account. Your skills are the same whether you trade with a $1,000 or $100,000. Your salary is the only difference.

Once I discovered Forex, I quickly realised all the potentials this business could offer me. I was, of course, full of preconceived ideas, as most of us are, I expect, but I could see instantly all the advantages compared with a traditional business or job. Those were the first things I could identify as a given.

In the first instance, this is a business that:

    Is accessible to anyone really. You could be a brain surgeon or unemployed, nothing stops you from acquiring the necessary skills to become successful in Forex.
    It is not hard to do. Sure it is an Art, but so is plastering or cooking, the difference is that you could become financially independent trading Forex but you won’t, by choosing plastering as your career.
    Does not need a 24/7 approach. No shift work or weekend work. I personally worked every Friday night, Saturday night and Sunday night for 14 years, running my restaurant (at least 48 weeks out of 52). Those were the busiest nights of the week so I had to be sure that everything was working fine and had to be there of course to be sure.
    Does not require vast amount of cash to start trading and making money. Now, that has got to be a real plus. Imagine you have a fabulous idea for a new business. Unless you have the financial backing to support your new business, I can assure you that you will find it extremely hard to fund your venture by borrowing the capital from a bank. Unless you provide them with solid collateral.
    Can be done from pretty much anywhere in the world. This is a freedom I very envied during my catering career. I certainly couldn’t take my restaurant with me if I wanted to spend 6 months of the year by the Mediterranean sea and the other 6 months in Scotland.
    Has no age limitation, therefore, no retirement. Providing of course that your remain mentally fit to trade successfully.
    Has no real physical limitation. In fact, Forex might provide a career opportunity to disabled people who would otherwise struggle financially.
    Doesn’t need to cost you anything while you learn your new skill and unlike a university course, there is no time limit to your learning.
    Can be practiced as near as real life experience without any financial commitment until you feel ready enough to commit yourself.
    I could go on and on but to me, these are the first obvious advantages that Forex has over any other businesses or jobs.

There is also another good reason why Forex could provide salvation in the economical crisis the western world is currently facing where:

Jobs are diminishing fast and unemployment figures in most countries in Europe and the USA are heading toward or already are in double digits. High street businesses are closing down at an alarming rate, depleting all sorts of seasonal jobs that would be available to the young generation while still studying or provide part time work to single parents. Our young generation is required to study for years, at great financial burden to their future life or to us parents that can afford to fund their studies. Now, it wouldn’t be so bad financial for them or for us if, at the end, they were guarantied the prospect of a job or career in their respected field of studies. But that is now becoming a luxury.

I used to travel Europe in my younger days, during my summer break. I never had much money, but I had a skill and I wasn’t frighten of hard work. I could always wash dishes and perform basis tasks in a kitchen (that was before I became a chef). Those skills meant that wherever I went, if I ran out of cash or was running low or if I wanted to stay in the same place for a while, I could always get a job in a kitchen, I would make some cash and I would be fed too. I never had any problems getting a job, even with the language barrier.

Times have changed, I wonder if Forex will become the dishwashing job of the future generation; help them fund their studies or travels. One thing for sure; if their develop those skills well enough, we might find whole generations, permanently on holiday, forgetting about their studies altogether.

Of course, the difference between Forex and washing dishes is that, you can live off Forex, very comfortably and it is far less back braking.

From: http://www.forexoma.com/the-reasons-why-forex-is-a-good-business/