Forex Market for Beginners

First of all I would like say my thanks to all of my friends and colleagues who have constantly support all of my works so far in the forex world. In fact, they are they are the main reason why I could strive this far. Without them, I do not think that I would actually step into this “world”. When I first started as a beginner in forex market, I have to admit that I got myself lost in this chaotic world but they were the one who keep on holding me till where I am right now. For me, this opportunity is something that I would love to share with anyone in this funny world.

The world of “forex” used to be so gloomy for me and even the word “forex” was foreign (hmm...so ironic) enough to me. Whenever I gathered with my friends at diner or somewhere (we didn’t have Twitter those days lol), once a while one of my friends would dragged the discussion to forex marketing. I was not interested at all at that time to know what does it mean by that word but I did learn few jargons. Gradually my mind developed this mind boggling scenario where day after day I would always thought about joining the so-called scheme.

For beginners, their common questions would evolve around how to successfully trade in forex market and how to understand the market fluctuations. Slowly from there beginners begin to learn how to read the charts and the graphs and begin to filter out currencies that are not worth trading for. Unfortunately, there are only a handful of websites on this very earth that are available to provide us with all these information. In fact, it is hard to find one that is free and willing to tutor us on how to get involved in forex trading. Despite all these obstacles, I consider myself to be lucky enough when I managed to get some kind help from one of my friends who has vast experience in the market.

So I started to learn from him few basic things about forex and the principles behind the market. A beginner like me would take quite some time to understand the whole game and furthermore, the fact that I’m getting older and older might be the actual reason why it was too hard for me to be a beginner. To be frank, it took me few years to fully understand the market and how to trade efficiently and effectively.

The first thing I learned about forex is the definition of the word itself. Forex itself is not an English word as it is a combo of two different words; foreign and exchange. Both words are completely different in terms of the meaning and definition. However, when we combined the words together, we will get a phrase which is “foreign exchange” and the phrase has a absolutely different meaning. Foreign exchange is a situation where the currencies of all the participating countries are being exchanged (buy and sell) for many purposes (we’ll go into that later).

You might be surprised that foreign exchange (Forex) market is in reality the largest financial market in the world. To be specific, more than a trillion dollars have been exchanged daily around the world. To those who are mathematically challenged, a trillion has how many zeros? Twelve. In numbers, a trillion looks like this - 1,000,000,000,000 (notes: this calculation is based on US system of numbering but some other countries might say that a trillion has 18 zeros which is a quintillion to us, but most countries now define a trillion to have twelve zeros). Now the question is how much is a trillion? To correctly visualized that, let say that your monthly income is $1000. So it will take you one thousand months (approximately 83 years) to get a million dollars. To get a billion dollars, you will have to work your butt out for about 83 thousand years (that is about 830 centuries or 83 millenniums). So, in order to get a trillion, you will have to work for 83 million years. Got it? LOL.

Now that you have already know how much have been traded in forex marketing daily, I assume that you can easily grab the idea of why millions of people are attracted to invest in the market. There are a lot of money could be made out there in the market. Unlike any other financial markets, forex has no physical location and has no central exchange which means it is operated through many institutions and networks such as banks and corporations. Forex is certainly a big world and now I think you would finally understand why I said earlier that it is easy for beginners to be carried away or lost in the mist. Due to this fact too, the forex market is virtually alive 24 hours around the clock spanning from one center to another.

You might be thinking that if the forex market really is that lucrative, why would I bother to spend my time here blogging and rambling about it instead of busying myself to check the today’s market? The actual answer lies somewhere in my head now but that is not to be revealed at this moment. As far as I am concerned, my current aim with this tiny blog of mine is to disclose everything about forex marketing that I know of. I may not be a good writer but please bear with that since another reason why I setup this beginner’s blog is to improve my writings. I have a big plan where in the future I will write books and reports about forex.

Ok, back to business. After few weeks of learning about forex from my friend (let just say that his name is Freign Kyle), one day he asked me a big question:

“Do you really want to get involve in forex?”

I replied by saying yes absent-mindedly. He kept on asking me few similar questions and again and again I answered the same thing. So then he decided that I am ready to move to the next step by letting me to watch the market flow. By the time I almost fell down from the chair due to dizziness of watching the graphs and charts, something struck my mind. Is this market really is a good place to start for a beginner like me? Is forex really is for me, an old beginner?

I turned my head to Mr. Kyle and then only I realized the actual purpose of his previous action of asking me whether I really want to know about forex. I realized that forex is not for beginners like me. I realized that the market is too huge for a tiny red ant like me. So I did ask him whether this is the right market for me. Well, quoting what he said to me, the market is certainly not for beginners to try out their marketing skills that they have learned at schools. Forex is not where you bet on your only money. The beginners should always keep this in mind to avoid from being scammed into an unfortunate misreading of the market flows and fluctuations.

There are other financial markets where you can venture into if your intention is to try out your marketing skills. The best way to try out what have been preached to you for years at college is to go to the open market. Sell something that people consume daily such as hotdogs and sandwiches. Ok, so you are too fond about forex, so why not naming one of your home-made hotdogs as “Forex hotdogs” or one of your sandwiches as “Currencwich”. Try selling them to the walking businessmen on the street or the lady in red waiting for her husband to pick her up near a book store. Or maybe you can try to sell it to a hotdog store and try to convince the seller that yours is much more delicious than his.

If you manage to convince the people that your product is good, that means you have successfully practice the basic marketing skill; convincing the audience. That goes the same with the forex marketing where everything is not as what you see. Everyone everywhere is trying to convince anyone and everyone that theirs are better. In other words, you might end up trading a currency that is not worth a cent to trade at a particular time yet you are convinced by some so-called forex experts who told you that you could be losing today or tomorrow but no one actually knows what will happen next week where you could be a millionaire in less than a month by trading in forex market.

Forex is a huge financial market and frankly say a beginner who is a rich fellow can always lose money in split second. Think wisely before you decide to join this very world and participate aggressively in the market. Prepare yourself with every single lesson that you have learned so far about marketing and trading. Trading in forex is all about applying all the basics and all the principles. If you fail to trade efficiently, you will lose unless you are some lucky chap and you have some luck in forex.

Money makes money. I am sure enough that you have heard that saying myriad times. But is the saying really is true? Yes it is. At least that is what I understand from the forex itself. We are trading the currencies and if you play the game well by spending your money at the right place and at the right time in the market, you will be able to generate lots and lots of money. If you are dumb and too stubborn to accept anyone’s opinion about forex, then consider yourself to be a lonely beginner in the market and I wish you all the best.

In my next post, I will start by explaining deeper on forex and the market and how beginners can survive in the market by applying some rules of thumb. Remember, you can be greedy as that is the motivation that we need in this cruel forex world, but don’t be too greedy as that can stop you from thinking rationally and wisely.