| We have all heard of the FOREX (currency trading | | | | initially risked and invested. |
| market) but how many realise how easy it is for | | | | So: |
| anyone to trade on FOREX. What many don't know | | | | |
| is that FOREX is the largest and fastest growing | | | | 1. Open a FOREX account with an online broker |
| financial market place. Daily it turns over more than | | | | (Google search for FOREX online broker) |
| 2.5 trillion dollars which is 100 times greater than | | | | 2. Choose a pair of currencies - any of the currencies |
| NASDAQ. | | | | traded on FOREX, yen, Canadian dollars, UK pounds, |
| You do not have to be a millionaire to trade on | | | | euros etc. |
| FOREX. Anyone can access this 24-hour a day | | | | 3. Decide whether you predict the exchange rate |
| marketplace and invest just 10's of dollars. | | | | between them will go up or down. |
| Like all markets, FOREX is a place to trade goods, | | | | 4. Determine the volume - the amount you wish to |
| only in this case the good traded is currency and you | | | | trade with. |
| make money simply by buying a currency and selling | | | | 5. Deposit your margin - usually 1% of the volume |
| it for a profit. You buy one currency with another, | | | | and deposit it using your credit card. |
| wait for the exchange rate to change between the | | | | 6. Activate your deal - while it is activated you hold |
| two currencies and then sell. Hopefully the exchange | | | | an "open position" |
| rate has changed in your favour and you make a | | | | 7. Monitor the status online and change the |
| profit. | | | | parameters of your deal as and when you see fit. |
| However in the FOREX market the fluctuations, | | | | 8. You can predetermine some parameters such as a |
| which generally average around 1% per day are | | | | "take profit rate" or "stop loss" which means you do |
| multiplied by 100. So, if during your trade, the | | | | not have to stay glued to your computer and trade |
| exchange rate changed in your favour by 0.73% the | | | | with preset safety margins. Your deal will close |
| return on your investment would be 73% or on a | | | | automatically for you. |
| $500 investment $365 - in just a few hours. | | | | Remember this - FOREX is essentially gambling. |
| Now of course, like any market, exchange rates can | | | | However with a bit of research you can easily |
| go one way or the other. So it is possible that you | | | | establish enough knowledge to begin trade profitably |
| can lose money too, and the same rule applies in that | | | | on FOREX. However- losses are inevitable. The trick |
| the losses are also multiplied by 100. But, the beauty | | | | is to make sure that you win more than you lose. |
| of the forex market place is that you can never lose | | | | Also recognise that even when things are going your |
| more than your margin. You can make unlimited | | | | way, they can reverse for a short time before |
| profits, but never lose more then the amount you | | | | continuing the trend in your direction. |