Forex beginners guide- Learn how to trade in Forex market from the basics

Forex beginners guide- Learn how to trade in Forex market from the basics

Today's Forex trading is well known as a lucrative way to make money
online. It became an essential part for investor's portfolio as you can
simply gain thousands in minutes by trading currencies at home. For those who
are new to the trade, Forex means Foreign Exchange Market where it involves
buying and selling the different currencies of the world. Profits are made through
the difference of selling and buying price - you earn when you buy-low
sell-high while lose when buy-high sell-low.

Forex is a true 24-hour market. The trade begins each day in Sydney, and moves
around the globe to Tokyo, London, and then New York. Unlike any other financial
market, investors can respond to money-value fluctuations caused by economic,
social and political events at the time they occur - day or night. Major currencies
traded nowadays are United States dollars, Australian Dollars, Japanese Yens,
British Pounds, Swiss Francs, Canadian Dollars, and the Euro Dollars.



In the past, small speculators are not allowed to trade Forex freely as it
is now. The minimum required business sizes are large and the financial requirements
for trading foreign currencies are strict. Only huge multi national cooperation
and banks are able to fit into the business. In fact, large international banks
are still the remain as the main players in currency exchange market. Deutsche
Bank is one of the top currency traders; along with other major banks like UBS,
Citi Group, HSBC, Barclays, J. P. Morgan Chase, Coldman Sachs, ABN Amro, Morgan
Stanley, and Merril Lynch; these banks are said to be responsible for more than
70% trades in currency market. Forex trade is not open to the publics until
year 1998, where big sized inter-bank units are sliced into smaller pieces and
offered to individual traders.

It is simple to get started in Forex trading, an funded Forex account and a
computer connected to the Internet is more than enough to get you moving. However,
to start trading and to earn in the trades are different. Trading Forex is a
high risks game and traders should always follow certain principals, listed
below are a few of must-do's when trading in Forex market.

1. Educate yourself before trading in Forex market

As in any trading markets, building up your trading skills and knowledge is
the very first step that you must take. Seminars, workshops, video tutorials,
online learning, or even books are handful to help us learn from the professional.
Learn to implement technical charting into your trades; learn using indicators
to determine the right time to enter/exit the market; brush up your experience
by trading with a demo account. all these are effective to ensure your
smooth starts and it will definitely reduce your chances of losing money. Forex learning website, ie. www.golearnforex.net, would be a good place to start with your Forex education.

2. Having a trading plans

A good trading plan is much needed no matter you are a beginner or an expert
in Forex trading. The Forex market itself is just a vehicle, to go to your desired
destination, which is to gain profit and achieve financial freedom in our case,
you have to drive your vehicle with maps and navigations. How much do you want
to earn from the trades? How much you can afford to lose if things go wrong?
What is the amount of capital you are putting in? Answer the questions to yourself
when you are setting your trading plan. If you fail to plan, you are indeed
plan to fail.

3. Mature mindsets and discipline trading

Trading Forex with discipline is important. Success in Forex trading could
not be achieved by only plotting out the best trading plan. It is also depends
on implementing the trading plan. Be discipline, trade according to your plan
and never trade with your emotion no matter you are losing money or winning.
Greed will stop you from taking profit at predetermined level; while fear will
stop you from making the nice kill in the market.

Without a doubt, Forex is getting more and more popular. There are less restrictions
in FOREX market. No limited market access, no liquidity issues-after market
hours, zero commission fees, low capital requirements, and no restrictions on
short selling. However, the risks in Forex trading should not be taken for granted.
As you can always trade in margin, you might lose a lot more than you can afford
if you don't plan your investment wisely. Seminars, e-Books, Internet,
papers, plus video courses are all you need first before getting involved in
the market.