Crawley, United Kingdom (PressExposure) August 21, 2009 -- The market
The currency trading (FOREX) market is the biggest and the fastest growing market on earth. Its daily turnover is more than 2.5 trillion dollars, which is 100 times greater than the NASDAQ daily turnover.
Markets are places to trade goods. The same goes with FOREX. The Forex goods (or merchandise) are the currencies of various countries. You buy Euro, paying with US dollars, or you sell Japanese Yens for Canadian dollars. That's all.
How does one profit in Forex?
Very simple and obvious: buy cheap and sell for more! The profit is generated from the fluctuations (changes) in the currency exchange market.
The nice thing about the FOREX market, is that regular daily fluctuations, say - around 1%, are multiplied by 100! If, for example, the exchange rate of "your" pair of currencies increased by 0.6% in the last 4 hours, your profit will be 60% on your investment! Such can happen in one business day, or in a few hours, even minutes.
Moreover, you cannot lose more than your "margin"! You may profit unlimited amounts, but you never lose more than what you initially risked and invested.
You can implement your choice (the pair of currencies, the volume amount) under any direction to which the market is moving, and yet make profit. It does not matter whether the exchange rate is going up or down: you can always decide to buy Euro and sell dollar, or vice versa - buy dollar and sell Euro. You don't have to physically possess certain currencies in order to perform "buy" or "sell" with them.
How do I trade Forex?
You select the pair of currencies with which you wish to make a Forex deal. You determine the volume (the amount of the deal). You deposit the "margin" (collateral needed to facilitate the deal. Usually - only a very small portion of the whole deal, say: 1% or 1:100).
Before you finally activate the deal, you can still "freeze" it for a few seconds. That enables you to either change the terms, or accept it as is, or altogether regret the whole idea.
When your Forex deal is running (you hold an "open position"), you can monitor its status and check scenarios online, whenever you wish. You may change some terms in the deal, or close it (and cash the profit, if any, or minimize the loss, if any). Moreover, Forex lets you determine a "take-profit" rate, with which the deal will close automatically for you, when and if such rate occurs in the market. Meaning: you do not have to stay near your computer when you hold open positions.
There's a lot of Robots and Systems coming out now almost every other day promising insane returns and a holy grail type click and forget forex trading systems that will turn you rich over night. Now you should know that this is generally pure hype and completely untrue as nobody can really predict what will happen in the markets.
As recession looms and people start to lose their jobs like never before, more and more people like yourself are looking towards the internet and other avenues like forex trading to bring in a stable source of income. Well take it from us, that's a wise decision because no matter what the economic condition in the world, every single day millions are being made by smart traders using clever forex trading systems to analyse and predict the movement of the market.
At the same time like any money making avenue the forex trading market is also polluted by scammers who thrive off people like yourself looking to make an income from forex trading.
You see its not about always being duped by systems that show outrageous income screen shots and guarantee you success if you purchase their products. To be successful in forex trading you need to follow a system that is scientific and predicts the market accuratelt judged on both past historical data and the current movements in todays market. Obviously no forex trading system will be correct 100% of the time and any product that gives you this guarantee you should stay far away from. What you need is a system that will give you more wins than losses so at the end of each trading month you have made a healthy profit.
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