This is a free mini-course designed to impart basic trading skills especially to those who are just getting started in the forex market. It is true that there is numerous information about forex trading online but the problem is most of such information is shallow. It can, therefore, be a little bit tricky for someone unfamiliar with forex trading to grasp anything. In this tutorial, I will try as much as possible not only to give accurate facts about forex trading but also make it easy to read and understand. If you are interested in forex trading then this free mini-course will be invaluable to you.
What is the forex market?
In simple words, forex trading involves speculating on the prices of various currencies. This is often done by either individuals or institutions with an aim of gaining profit. The forex market also referred to as the foreign currency market or the Fx market operates 24 hours in 5 days. The good thing about forex market is that it can be done anywhere in the world provided that you have a computer and access to the internet. Good brokers such as market gbp and trade dax can be of big help.
forex trade started
Forex trading is becoming popular every day. People are taking advantage of technology such as the internet to make money by trading. But before we go far let us first try to understand what forex trade is and how it started. Forex trade started way back in 1876 when something known as the gold exchange came to an end. Initially, all countries had come to an agreement that gold would be pegged to paper currency to control the value of money. However, in the early 1940’s two major European countries lacked enough gold to back their paper currency. Consequently, the practice was abolished and it was decided that the U.S dollar was the only currency that would be pegged on physical gold.
However, in 1971 the United States also declared that it would no longer exchange its currency with physical gold which led to the start of floating foreign currency at a central platform in 1976. It was not until 1990 that the foreign exchange trade was conducted electronically. During those early days, the primary purpose of forex trading was to make trading between countries easy. For instance, if a person visiting another country they would exchange their currency with the local currency in order to make transactions easier.
Why the forex market is popular
Engaging in forex trading is one of the most prestigious things in the modern world. Most people have made billions through forex trade. It might sound easy but to get there you have to accumulate experience and learn every day. The problem is that some people are used to giving up so easily. Forex trade requires a certain level of persistence and perseverance. The following are some of the traits successful forex traders.
Forex traders are disciplined people. The trade requires someone who is able to come up with a single trading plan and stick to it.
One of the major characteristics of forex traders is dedication. That is why most traders often choose to work in the forex market on a full-time basis. That is the only way you will be able to understand and analyze the market to make huger profits.
As a trader, you are supposed to be guided by facts and not emotions.
Patience is also an important virtue when it comes to forex trading. You should be able to wait for the perfect time to purchase or sell your currency.
As trader, you need to be confident about yourself. Do not fall for traps from forex brokers or other traders.