Judul : A Quick Look at Forex Trade
link : A Quick Look at Forex Trade
A Quick Look at Forex Trade
Today, I would like us to look at different aspect of making easy money online. Forex Trading. Let me say upfront this is not an easy way of making money online. I have been there and done it. Forex Trading is not for the feint-hearted, you have to have nerves of steel and a very strong mind-set.There are a couple of pointers that you will need to consider if you would like to enter into this lucrative business. But before we look at them lets get up to speed as to know the basics of Forex Trade. Forex Trade involves the buying and selling of currencies. A good example is, let’s say you go to your local bank (in this case we are going to use USA for purposes of explanation) with Euro currency with the purpose of reverting it back o US Dollar. You will be selling the Euro to the bank. If you were exchanging the dollar for the Euro, you will be buying. If you had bought the Euro at 1.4550 and you sell it at 1.4450, you will have made a loss of 0.0100. But, if let’s say selling price was 1.4650, you will have made 0.0100 profit.
From the example, Forex Trade with brokers works in similar fashion only that it leveraged by the broker. (We will get to talk about leverage later). Mostly, Forex involves speculation in that you predict the direction the price is going to move-which is usually two-way up (buy) and down (sell).If you predict the price is going to go up and you are correct, then you make a profit and vise versa. But it’s not just a straight forward prediction, you will have to use a few things to arrive at your opinion but it is usually of two kinds.
1. Technical analysis
2. Fundamental analysis
Technical analysis involves the reading of charts of various periods ranging from 1 minute to monthly and using an array of tools at your disposal like moving averages, macd, parabolic sar, trendlines, Fibonacci and many others that help you predict future price action.
Fundamental analysis involves price action being determined by economic announcements made by countries concerning the state of the economy or news which impact on the specific currency. Usually, economic announcements are set at specific dates and times but news can occur at any time causing a price spike. But both cause short term effects in determining the future price action.
Leverage is what makes it possible for small investors to participate in Forex Trade. To trade forex as a small investor you will have required a lot of money but leverage takes this out of the picture. Let’s use the previous example to get this. Now, if you had 100 USD, the profit/loss would be 1 USD-not much. But if it was through a broker in Forex Trade, the broker gives you money that is not yours for purposes of opening a trade. Here, the 100 USD will be increased (leveraged) to let’s say 1000 USD thus the profit/ loss you make would be 10 USD-quite a big difference. This is what makes Forex Trade through brokers interesting as well as challenging.
Depending on the account you open with a broker you can make easy money online with Forex but at the same time huge losses. Therefore you will have to learn all that is required first before diving in-usually 2 years minimum. There are free resources online to get you started or check out: Forex Strategies Revealed and Investopedia.
In summary, this is what you will require to start your Forex Business:
1.Internet Connection-should be fast and reliable for dealing purposes.
2.Forex Education-use free resources online like those provided earlier.
3.Chose a reliable forex broker:just google 'forex brokers' to find one and preferably one that supports MT4.But be cautious,there are those that might rip you off(do thorough research).
4. Strategy-your plan on how you are going to open trades and close trades.Read more.
5. Money for opening a live account-can be opened with as low as 100usd. For demo (is for purposes of testing your strategy and to know your way around the broker platform), no money is required.
6. A very strong mind set. This is what will make or break you. Don’t enter forex with the notion that it is a get rich quick endeavor. Suppress your greed.
Well it is a good home opportunity, try it out and see whether it will make easy money online for you.
Disclaimer: Forex Trade involves a high level of risk. While you can make huge profits you can also make huge losses. Don’t use money which you can’t afford to lose.
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