Forex made easy for everyone

Forextamil

Junior member
12 0
Forex made easy is as simple as you would want it to be. The foreign exchange market is a worldwide market and according to some estimates is almost as big as thirty times the turnover of the US Equity markets. That is some figure to chew on. Forex is the commonly used term for foreign exchange. As a person who wants to invest in the forex market, one should understand the basics of how this currency market operates. Forex can be made easier for beginners to understand it and here’s how.

Foreign exchange is the buying and the selling of foreign exchange in pairs of currencies. For example you buy US dollars and sell UK Sterling pounds or you sell German Marks and buy Japanese Yen. Why are currencies bought or sold? The answer is simple; Governments and Companies need foreign exchange for their purchase and payments for various commodities and services. This trade constitutes about 5% of all currency transactions, however the other 95% currency transactions are done for speculation and trade. In fact many companies will buy foreign currency when it is being traded at a lower rate to protect their financial investments. Another thing about foreign exchange market is that the rates are varying continuously and on daily basis. Therefore investors and financial managers track the forex rates and the forex market it on a daily basis.

Those who are involved in the forex trade know that almost 85% of the trading is done in only US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar. This is because they are the most liquid of foreign currencies (can be easily bought and sold. In fact the US Dollar is most recognizable foreign currency even in countries like Afghanistan, Iraq, Vietnam etc).

Being a truly 24/7 market, the currency trading markets opens in the financial centers of Sydney, Tokyo, London and New York in that sequence. Investors and speculators alike respond to the ever-changing situations and can buy and sell simultaneously the currencies. In fact many operate in two or more currency market using arbitrage to gain profits (buying in one market and selling in another market or vice versa to take advantage of the prices and book profits).

While dealing in forex, one should have a margin account. Quite simply put if you have US$ 1,000 and have a forex margin account which leverages 100:1 then you can buy US$ 100,000 since you only need 1% of the US$100,000 or US$1,000. Therefore it means that with margin account you have US$ 100,000 worth of real purchasing power in your hand.

Since the foreign currency market is fluctuating on a continuous basis, one should be able to understand the factors that affect this currency market. This is done through Technical Analysis and Fundamental Analysis. These two tools of trade are used in a variety of other markets such as equity markets, stock markets, mutual funds markets etc. Technical Analysis refers to reading, summarizing and analyzing data based on the data that is generated by the market. While fundamental Analysis refers to the factors, which influence the market economy, and in turn how it would affect the currency trading. Of course there are other economic and non economic factors which can suddenly affect the trading of the forex markets such as the 9/11 tragedy etc. One needs to have a shrewd acumen and a few number crunching abilities to strike gold in the forex market.
 

Forextamil

Junior member
12 0
I do not agree at all that forex, trading is something simple and something available for everyone, etc. Because, in my opinion, it is quite a serious business, which has a lot of features that need to be studied, accept all the mechanisms, etc., and it can not be easy. And when a person comes here with the idea that it is possible to cope with everything simply and quickly, it immediately gives some slightly wrong reference points, which further lead to a certain disappointment, which ruins all their plans.
But you don't have to be afraid of that, because I believe that there should be people in this area who are willing to work hard and achieve their goals, and only that can lead to some profit, etc.
ok fine
thanks for your replay i wil check its again
 

Manostrell

Junior member
48 3
It seems to me that the market can be easy for everyone if you can find something that will help you on a regular basis as soon as possible. Each of us has our own preferences, and each of us has our own views on how things should go. And there's no need to be guided by any advice or restrictions. You should focus only on how you feel and how confident you feel about using one or another tool. And for this you definitely need to practice, because with experience comes understanding, with experience you begin to find faster what will help you solve problems. You don't have to wait for profit here and now, the calmer you move, the more likely it is that you will move as far as possible.
 

absence

Junior member
42 7
Forex is never made easy for everyone otherwise we all would have been millionaires. Rather forex has made us to feel more determined, more concentrated and more focused
 
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Henow1969

Active member
132 13
Forex is not so easy but if we have good knowledge and skills then we can make good money through it.
 

WalletInvestor

Member
76 23
I agree with Sharim and absence, forex is really not this simple to explain. Especially not margin trading, because it comes with really high risks and posing it as an option available to everyone seems irresponsible.

Maybe it is easy to understand the forex market to an extent where you can hold up a conversation about it, but trading profitably requires a lot of learning and experience. And that's okay, we don't need to make it sound like something it's not.
 
 
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