What is Forex?
The easiest way I have found to explain Forex to people is the following: When you go to another country, you have to exchange your home currency for the foreign currency in order to buy goods and services in that foreign country. Depending on the strength of your home currency you can buy more or less in the foreign country. For example if I go to Europe, assuming I live in the USA, I have to exchange my US Dollars for Euros. A Forex Trader bets on that exchange rate. For example, today if I went to Europe, it would cost me $1.2500 to buy one Euro. If I would have traveled there in December of 2009, it would have cost me $1.5000 for one Euro. So a Forex Trader that would have bet the US Dollar would strengthen against the Euro back in December 2009, would have made a profit.
Many of you probably immediately associate “Forex Trading” with gambling. This is not completely true, however they do have a few similarities. For instance, the more money you bet, the more you can make and the more you can loose. You can also go to a Casino to gamble, or just play cards online at your house. Some Forex Traders work in an office with a group of traders, and some sit in the comfort of there home. Either way, both types are using the internet to trade. Forex Trading is done online, allowing you to have the ability to trade at an office, at home or even during a vacation in the Bahamas as long as you have internet access.
This is where gambling and Forex Trading differs in my eyes. Gambling – The risk is artificially created, or in other words, the risk is already defined before you play the game. For example if you want to play Black Jack (21), you have the same chance of winning every time you play. In Trading it is actually possible to significantly limit your risk with the right knowledge and tools. So your job as a Forex Trader is to decide when you have the highest probability of winning and then ACT on it immediately! This business is normally presented as a get rich scheme with little effort involved. Sure, some traders double their accounts in a week, but I can assure you that is not possible to sustain those results in the long run. Just like in any profession, you must PRACTICE in order to become successful in that specific task or subject! In lessons to follow you will learn why 97% of Traders approach this business with the wrong perspective, immediately setting them self up for failure.
You can also trade 24-Hrs/Day – Sunday (5:00PM EST) – Friday (5:00PM EST). Whether you have another job, going to school, or even have a family, if you can set aside a 3-5 hours a few days a week, Forex could be for you. The flexibility of working when and where you want, along with the potential to turn Forex Trading in to your very own lucrative Business, makes Forex very attractive. I do however understand Forex Trading is not for everyone. However, for the people that are self motivated and truly desire to learn Forex, your in luck! I am here to personally guide you along your Forex journey.
The best part about the business is you don’t need any credentials to get started! It doesn’t matter if you dropped out of high school, graduated from Harvard or even have a financial background … the funny part is, that’s the truth. Many ask, well why have I never heard of Forex before if it’s seems so perfect? Well possibly because it is relatively new for individuals like you and I to participate in. When people hear about investing or trading, the stock market is usually the first thing they associate it with. Unfortunately the stock market is also what most initially learn about and sometimes it takes years until they are exposed to the Forex market, if ever…
In the past few years, as more and more investors and individuals are learning about Forex, they are continuing to flee to the Forex market over any other market in the world. Yes, Forex is even gaining preference over the stock markets worldwide more and more every year. Why you ask. Well for a few reasons:
- 24-Hr Trading – Sunday (5:00PM EST) – Friday (5:00PM EST)
- Spreads -Small Commissions
- Liquidity – Over $3 Trillion Traded Daily
- Leverage – Allows you to start your start own business with as little as $500
So what does it take to Trade for a Living you ask? Why do 97% of Traders loose money? Ill tell you this, successful Traders all have one thing in common. The top Traders in the World all have Theories, Methods and Tools (TMT) giving them an edge in the market. Theses successful Traders are making more than a living! Some are making a $100,000 a year, others over $10,000,000 a year and some you will never truly know because they have enough money to keep it that way. This is not just coincidence these traders are consistently beating the market, they just have the right TMT’s. Theories being a perception on how the market works and evolves everyday. They use various Methods of evaluating the market conditions, building confidence, staying disciplined, and putting their emotions aside. Last, but not least, Tools. This includes: Computers, Platforms/Software, Strategies, Brokers, News Feeds, etc. If you have the desire to learn about the most rewarding business in the World, I am here to provide you everything you will need to find success in Forex.
On a serious note … you are honestly one step closer to becoming a successful Forex Trader. Lets immediately start learning about the terminology in Forex Trading.
Time is Money!!!