Forex trading is one way to make money online and from the comfort of your home. To begin trading you must first learn what Forex is and how to get started. This article provides you with the first knowledge needed to begin.
The world today is sure in difficult times such that, earning money or extra money is no longer optional but a necessity to most people. Finding ways of building multiple streams of income are on the increase. One thing the high rate of unemployment and mounting job losses in recent times have taught us is that nobody's job is safe. Fortunately, there are several ways of earning extra income and one way of the ways is trading forex.
Forex trading is the exchange of one currency for another at an agreed exchange price on the currency market. Advantageously the Forex market is open 24 hours so anyone, wherever they are can trade. When you trade forex you are simply exchanging or wagering on other traders on currency directions. Straightforward as it is, if you think the US dollar is going to rise, you would BUY the dollar, and SELL the dollar if you think the dollar would fall.
Well, to start trading, you will first need a good and reliable forex broker, forex brokers are simply organizations that offer currency traders with access to a trading platform that allows them to buy and sell foreign currencies. To our advantage, there are some good brokers in the likes of Profiforex Corp and a few to mention that allow a minimum of $1-$5 to help new traders with little capital to build up their account. But then of course, as new traders, you will need to practice before you start trading with real cash and that’s another importance of your forex broker.
You can open a demo trading account and practice trading with virtual money to gain the experience required before you jump into trading with real money. Forex brokers offer unlimited demo trading account which gets deactivated after weeks of inactivity. After opening an account with your broker, the second thing on your list is to start studying the basics of forex.
Now there are many eBooks, forex websites, forex forums among others, these sites have great resources that are helpful and can guide you on the basics on how to place orders (buy and sell), read charts, etc.
Practicing what you learned on daily basis on your demo account should be a priority, when you are familiar with the markets you can move to live account to trade with real cash.
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One of the core problems of new traders is opening trades outside their trading strategy. Your forex strategy has a lot to do with your fundamental analysis and your technical analysis.
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When we read Forex fundamental analysis, we often here the term "Fed Hike" and how it changes the market negatively or positively. In this article, we'll discuss why anything coming from the FED matters.
