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Forex trading is a lot harder than it seems. It takes a lot of knowledge and practice to make a good Forex trader. Once learned, Forex trading has the best returns.

Forex stands for foreign exchange. When trading foreign exchange, it is done in currency pairs. This is when the computer shows the two currencies you are looking for as a pair. Which ever currency is listed first in the pair is the one that you want to buy. The one that is listed second is the one that you wish to sell for the first currency.

Why should one trade FOREX?

?     Forex trading is the most popular trading in the world.

?     Forex trading has the most profitable turnover.

?     Forex is a 24 hour, 7 day market.

?     In Forex trading, you can also profit from an increasing market and a decreasing market.

How should a beginner trader start Preparing for Forex?

To get better at Forex, or any other kind of trading, you need to do a lot of practicing. There are a lot of different free demos that you can download off of the internet. The practice demos will look very similar to the real thing, but you will not lose any real money. If you do download one of these demos, don’t just see how everything works, you should also develop some of your own strategies that you can use when trading. If you are not doing very well with one strategy, try different ones until you find one that works for you.

Practicing and educating yourself does not just mean downloading a demo. You also need to do some research about big events in different countries and look at charts to see how different event inflict change. Different events will happen that will make the value of some currencies go up and down. You need to do enough research so that you can know and understand how and why this happens. The more you know, the easier Forex trading will get.

How much Leverage do you get while trading in forex market?

There is a lot of leverage when it comes to Forex trading. There is leverage in all types of trading, but not to the extent you get with Forex. You may find a firm that will offer you 100:1 leverage. Leverage can give traders a chance to buy a higher amount of currency than their account balance reads. All of this is true, but when you are Forex trading, leverage is nice but not necessary.

One Comment leave one →
  1. Fern Joseph permalink
    January 26, 2009 10:12 pm

    You are absolutely right, you do need knowledge and practice, very relevant article.Thanks.

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