Your Guide To Successful Forex Trading

[shamoon633206]

Your Guide To Successful Forex Trading

The currencies of the world are on a floating exchange rate, and they are always traded in pairs Euro/Dollar, Dollar/Yen, etc. About 85 percent of all daily transactions involve trading of the major currencies.

Four major currency pairs are usually used for investment purposes. They are: Euro against US dollar, US dollar against Japanese yen, British pound against US dollar, and US dollar against Swiss franc. Right now I will show you how they look in the trading market: EUR/USD, USD/JPY, GBP/USD, and USD/CHF. As a note you should know that no dividends are paid on currencies.

If you think one currency will appreciate against another, you may exchange that second currency for the first one and be able to stay in it. In case everything goes as you plan it, eventually you may be able to make the opposite deal in that you may exchange this first currency back for that other and then collect profits from it.

Transactions on the FOREX market are performed by dealers at major banks or FOREX brokerage companies. FOREX is a necessary part of the world wide market, so when you are sleeping in the comfort of your bed, the dealers in Europe are trading currencies with their Japanese counterparts.

Therefore, it is reasonable for you to believe that the FOREX market is active 24 hours a day and dealers at major institutions are working 24/7 in three different shifts. Clients may place take-profit and stop-loss orders with brokers for overnight execution.

 

[Cutiekc]

Your thread is the bomb honestly i like your content,perhaps the dealers that implement the transactions also have a great hand in our sucess,my question is that how do this broker make there profits and how and where does the loss funds go into?

 

[budado]

Broker sites earn in many ways. One is commision base if you withdraw your funds you pay commission fees.
Another is via spread. For example buy price is 1.4254 and sell price is 1.4251. Meaning if you open a buy position you have automatic loss of 3 pips.
And about the loss. A loss of a trader is a profit of another trader.

 

[brokenblade]

This is a great explanation on how the currencies work. The key thing is in being able to predict when the currencies are going to rise or fall and trading based on that. There are a lot of factors that have an effect on the rise and fall of a currency. One thing to look out for is the news about the markets of the currencies you are trading.

 

[monyitomon]

Indeed a loss of a trader is a profit of one another. There are many factors that affecting the movement of the market. We have to make a thorough analysis before trading. There are many ways that a Forex broker earns they are involve of the biggest market and surely it is earning a lot.

 

[kasual]

the advantage to trading use major pair is volatility. because many trader choose these major pair, the volatility is very high and its enough to every trader take satisfied profit. another advantage is low spread in major pair than exotic pair.

 

[riddick09]

Yes, that's why most of the new traders are into major pairs because they see it aside from volatile market will be their low spreads in any forex brokers we know. That's why its the best for them to reach easily their target profits. And yes, there's a lot of factors that affect the market not only traders.

 

[indieover]

you have to choose only one pair if you are just a newbie. just like me i don't trade those other currencies. i just try to observe first the behavior or the EUR/US currencies. so i am contented with that one already.

 

[stephan noel]

Forex is very complex market. traders at the market needs complete knowledge and understanding of the forex market trends and pattern. to make successful trading every traders need to get review of the market and be efficient to make forex trading.

 

[chintu]

Not taking more pars and i always use to trade mostly one pair and it will help us to cleanly observe the market values and as well through analyse is very important in trading and god knowledge and practice will help you for the successful trading i feel .

 

[kasual]

based on daily average range of price movement, the potential profit actually only 100 pips in average. and its only happen in major pair. while for exotic pair, surely the potential price movement less than 100 pips in average. if a trader want to gain more than 100 pips per day, the good method is basket trading. but this method is require experience and good initial capital.

 

[rexway]

Well success can never be gotten in forex trading without the right knowledge and skills to succeed ,so that is why I do prefer constant practice and learning just to make way for succees for me and I do think that forex trading success can only be gotten through this means.

 

[anuj7]

Currency dealing became the shining example of many informal investors, because of its assets, its connected industry dealing concepts and the fact that many informal investors could opt to day business - significance they would close and sell all their financial commitment options before the industry ends for the day.

 

[Tirus]

Well success can never be gotten in forex trading without the right knowledge and skills to succeed ,so that is why I do prefer constant practice and learning just to make way for succees for me and I do think that forex trading success can only be gotten through this means.

There is indeed no way that you can manage to become a successful trader if you do not know what you are doing. The first thing to do is to make sure that you have sound and solid understanding of forex and what factors influences the currency markets so you know how to operate.

 

[anuj7]

Currency dealing became the shining example of many informal investors, because of its assets, its connected industry dealing concepts and the fact that many informal investors could opt to day business - significance they would close and sell all their financial commitment options before the industry ends for the day.I advise you to work under some genuine companies only!!

 

[budado]

Earning in forex is not easy. theirs just too many who loses money in forex simply because they take it lightly. They think knowing minimum knowledge about forex is good to start trading in forex right away. They think they can earn good amount of money in here. But one thing I want to say. In forex trading your like digging a hole. the deeper you dig the more chances its can turn into a well and get water.

 

[rexway]

Minimum knowledge alone is not enough for any body to start trading because forex is a little bit complicated so we have the most advanteges if we can put our effort to learn and practice here in forex .
And even get more knowledge more than our expectation will go along way to help us make it big instead of just aiming at the minimum knowledge.

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Minimum knowledge alone is not enough for any body to start trading because forex is a little bit complicated so we have the most advanteges if we can put our effort to learn and practice here in forex .
And even get more knowledge more than our expectation will go along way to help us make it big instead of just aiming at the minimum knowledge.

 

[riddick09]

But minimum knowledge will be the way for traders to continue on pursuing what they are lacking in forex. This means that we are in need to continuously learn trading and to be successful. We need to progress, improve and develop while we are trading. Minimum knowledge can already our advantage.

 

[indieover]

Indeed we should keep on learning so we would be able to have less loss in our trading. So we would be able to succeed in forex. But it would not just happen overnight. So we should just keep on practicing and learning

 

[riddick09]

Nope, what we really aiming to learn is to learn how to avoid losses or possible losses. It can be a strategy also that lessen the risk in our trading. Though, that's not going to work if we haven't experience how to lose first and how to cope with those losses to prevent in our future trades.