Before we dive into our holy discussion, once again I would like to remind you that trading in forex market is definitely not for beginners. Beginners in my humble opinion are those who have heard about foreign exchange many times and how it has helped many to earn handsome income but yet to decide to join and play the game along with other players. The recession might be one of the factors that some have finally decided to get into the market and try their lucks. Please bear it in your mind all the time that the forex market is not meant to be manipulated by anyone especially beginners.
I have read in today’s news about Obama’s speech in Costa Mesa where he takes the blame in AIG bonus issue. The president said that he shares widespread anger at AIG for giving their executives $165 million worth of bonuses at a time when the insurance giant is being bailed out by the federal government with more than $170 billion. What gives? Why Obama should take the blame in AIG flap when he was not the one who approved it in the first place? Well, from what I see, Obama is doing the right thing. Obama is the current president of the United States. He is a beginner as a president but his seniority in politics world is crystal clear here. Not like others, Obama is taking the blame and we should respect that smart move.
By the way, the AIG CEO Edward Liddy has testified before House members that the bonus would not be given should the federal government did not bail them out. He said that AIG might have spiraled into bankruptcy and all the basic contracts would have been void. Finally, he has come into sense that the company is bound to social responsibilities especially when the money given to AIG is from the US taxpayers. I’m willing to part from my money to pay out the tax but I won’t allow the money to be spent for bonuses. Never!
Ok, back to our discussion. I am sure by now almost everyone has fully understood what Forex is what is traded in Forex market. However, since the market does not trade any physical products like the stock market, trading in this market might be very confusing and there are a lot of distractions and false alarms. The highs and lows of the currencies are determined by various factors and sometimes based on nothing at all. When the currency’s value is not based on anything at all, it might have been manipulated by some people. That’s why I said that trading in forex market is not for fresh green beginners.
Oh my God, I have just read another story. I’m sorry that I have to divert for a while. This is about one of my favorite actress, Natasha Richardson. “Natasha Richardson” died yesterday from head injuries suffered while she was skiing in Montreal. She was actor Liam Neeson’s beloved wife and what happen was she fell on a beginners slope near Montreal. She was skiing during a ski lesson conducted there and according to previous news, she was initially appeared coherent but complained of a headache about an hour later. Natasha Richardson has won many awards as she was a very versatile actress. Including Liam Neeson, Natasha Richardson is survived by two sons; her mother; and a sister.
Sorry about that. I love to read things while typing. Back to work. Beginners tend to be impatient and they simply want to skip few steps and jump to conclusion. They want to invest and trade in the forex market as soon as possible. Those who are patient enough are those who later will reap the most from the forex market. Let’s take a look at some of the popular currencies. When I say they are popular, it means that they are traded frequently every day.
There are few of them; buck, fiber, yen, cable, swissy, loonie, aussie, and kiwi. Each one of those are nicknames for the real currencies. “Buck” is referring to the United States dollar, “Fiber” is referring to Euro, “cable” is referring to the pound sterling, “swissy” is referring to Franc, “loonie” is referring to Canada dollar, “Aussie” is referring to the Australian dollar and “Kiwi” is referring to New Zealand dollar. Oh yes, there is another thing that I want to remind you. In the forex world, each of the currency symbols are represented by three letters. For instance, the US dollar is represented by “USD”. “US” is the country’s name and “D” at the end is used to identify the country’s currency; which is in this case is dollar. So if you see MYR, “MY” is for Malaysia and “R” is for “ringgit”.
Since currencies in the forex market are traded all the time around the globe, you can trade anytime you want since the forex market will never close. People from East like in China and Japan might be trading for USD while we are sleeping and when we wake up, we will be trading for their currencies as well. If you prefer to work at nights, you may see a different set of movements in the forex market. In other words, the market is a challenging one and at the same times an interesting market.
There are just so many reasons why people choose to trade in forex market. There are other markets but why do they choose to trade in forex market? What gives? There must be something about the market and I believe I have mentioned few of them few times in my previous posts. First of all it is because of the nature of the forex market itself. Forex market is a huge one compared to other trading markets. Due to this fact, the forex market is super duper liquid. You can buy and sell at will almost instantly and with the rapid moves in technology, you can now trade in forex market online; which makes the market even bigger and crowded with beginners.
The best part about trading in forex market is you can set your trading activities to close at your desired profit level. If the trade is not in your best interest, you can also stop the trade immediately. We will look into the terms later in our discussion. What I’m trying to say here is you are the one who decides whether you can make money or lose money. No one else. If you know what you are doing, then you may make some money. If you don’t have any idea where you are going, then less than likely you can make money from trading in forex market.
Forex market is joined by many countries and therefore it is so huge that no one can actually manipulate the whole system. Of course, there are some people who found ways to manipulate the market but usually the sleazy tactics are not that effective in a long term. It might works for a certain period, say, a day. However, to manipulate the forex market involves a lot of things and only those who have been in the market for many years might be able to perform the tactics. As at this moment, don’t worry too much about this since the scenarios are not going to happen every single day. Once in a blue moon, you will see them but since the market is global, those tactics can be easily detected at early stage.
That’s all for now as I am now not in the best shape to write. I will write some more posts later in the future and they will be more focusing on what you should do as beginners to trade efficiently in the forex market. Remember, patient is the only first thing that you should first have before you start trading in forex market. Oh yes, apart from that we will also look into details on how beginners can make money online trading in forex market. Trust me, the system is in only about buying and selling currencies and once you know the gist and the principle behind forex market, then you are capable of trading currencies in forex market.
Until next time, have a good one!
Thursday, March 19, 2009
Wednesday, March 18, 2009
Trading in Forex Market for Beginners
The current global recession which has tremendously hit the United States is a disaster that has caused a lot of people to lose their current jobs. Unfortunately, the only way for many companies to survive either they are giant companies or not, are to cut down a major amount of their costs and one of them is definitely human resources. Like it or not, it is best to keep the interest for the whole nation instead of the interest of a few bunch of people. To survive, you need to sacrifice and to sacrifice; you need to have a big heart to do it. God bless America.
Millions have lost their jobs and a fraction of them have decided to jump into small businesses to make a little bit of fortune for themselves. That would be a smart move since survival is necessary and working hard and smart is the only way to survive. However, there are also those who believe that with some savings that they managed to keep during the good times they can just invest in other things such as the forex market. They are under the impression that trading in forex market is the best alternative to earn some handsome money. Unfortunately, that is not the case.
Forex market is not for beginners. I know that statement is pretty lame or cliché but that is the truth. “Beginners” are those who thought that simply by reading few manuals and “how-to” books on forex market and trading they can just play the game. Unfortunately, trading in forex market is not like playing snakes and ladders game. Trading in forex is also not like playing chutes and ladders. You can’t just throw the dice and wait till you reach the last space. That is not how beginners play the game of forex trading and marketing. There are just so many loopholes in the system and beginners will definitely fall into any of the booby traps.
Trading in forex market is like going into the jungle for war. To go into the jungle, you should always be prepared. You must bring your weapons and other necessary gadgets in order to survive. When you see enemies, you don’t simply fire at will. You use strategies to take the enemies down. If you are an FNG, then you have to go for training first. After you have gone intensive training, then only you are allowed to go into the forest and fight. In order to fight well, you have to go through a number of experiences. You will learn a lot along the way and that’s how a beginner should first tackle to ensure survival in the forex market.
The market is so huge that anyone can just join and make money; or lose money. Beginners are the easiest targets by many parties since they have no idea of which to trade and which is not to be traded. Unfortunately, the number of these brown cunning foxes portraying themselves as forex experts is numerous and keeps expanding from time to time; parallel to the number of beginners. If you are careless, then you are more likely to lose your money and I doubt that you will continue to trade. If you are lucky, then you are more than likely to earn a lot from trading in forex market though you are still a beginner. However, luck is probability that is taken personally. Luck is circumstantial and you don’t have any control over it whatsoever. If you are a beginner and you only trust on luck, then you can forget about trading in forex market. If you are a rationalist, then read on.
Fortunately these days it is quite easy to search for how-to books on how to trade in forex market especially for beginners. You just have to know the right place to find it. If you ask someone who could be an expert in forex market about where to find books or courses on how to trade in forex market for beginners, you might receive a number of answers. Some might say that you can find them on the net and some might say that it is best to first check out books from the forex experts. Either one, you will definitely find good materials to read about forex market.
Red Flags to Seek Out When Buying “How to Trade in Forex Market for Beginners” Books
If you go to the book store, you might end up looking at an array of thousands of books and magazines about beginners guidelines for trading in forex market. You won’t be able to differentiate which is the best material to read and which is just plain crappy forex market book. If you take a look at each one of the books, the possibility is almost certain to see some biography or author’s background on the first page or at the back of the books. Almost all of them will claim that they are the experts and the specialist in forex market. Almost all of them will claim that they know so much about forex and trading in the market and you should be listening to their advices.
Be as wary as you can but don’t be too paranoid when choosing the right book on how to trade in forex market. If possible, get some basic information first on who are the tycoons in this market. If you can’t find any experts’ names, do not be worry. Take some time between an hour or two to figure out which book stands out most. Reputable books are usually printed by reputable book publishers. If you can’t find any, then the best alternative is to choose a few books that you feel will provide you with some basics of trading in foreign exchange market. The bottom line is, there is no specific guideline you should follow the first time you buy books. Read all the books you have purchased and if the materials do not contradict with each other, then most probably that they are telling you the right thing about forex. If they don’t, then go out and buy some more books. Eventually you will end up knowing more about forex. Eventually you will know which one provides you with solid facts about how to trade in forex market and which one provides you total craps.
If it is more convenient for you to search for the information online, then you should keep in mind about the brown cunning foxes I mentioned earlier. They are tech-savvy guys too and they have published thousands of websites just to lure you into their traps. They just want your money and they just can’t help quitting from doing so. Search the net by using as many keywords as you can about forex. There is no such thing as learning from the best when it comes to forex trading. Learn the basics and then try your skills you have learned theoretically by using any free forex demos.
When to Start Trading in Foreign Exchange (Forex) Market
Beginners, hold your horses. Do you think that your “horse” is competent enough to beat other horses? Or do you think that you as the rider of the horse know well about your horse and control it? If what you have is just the theory, then you should first play around with the demos. You can sign up at any sites that offer the service and you can play with the account for free. You do not have to pay anything to get the demos. Be careful though that sometimes the demos have been tweaked to show great results so that later when you feel confident with your results you will sign up with them. So it is best to open few accounts with different providers and see the difference between them.
If you ask someone when you can actually start trading in forex, most of the times you will get answers like “you can start almost immediately” or “you should wait for at least 6 months”. You should stick to the second answer. Yes, you should wait for at least six months. So what should you do within that six months? You should study the market and make your own analysis on how the market goes and how the market is influenced by either political events or any sort of events. The market is just so huge that you cannot depend on the views of other people only. Most probably the person that you asked is also a beginner in the market and perhaps he too has only a small fraction of knowledge about the market.
Another thing that you should do before you begin trading is to play around with the forex demo as many times as you can. Learn how to read the graphs, learn how to interpret them, and learn the differences it makes when you invest a small amount of “money” and when you spend a big amount of money. The forex demo is designed to help you to understand the market flow and how you can manipulate the information that you have obtained. Six months is good enough for you to understand the “basics”. I repeat, the basics. You won’t be an expert in forex market simply by mastering the system in the forex demo account. It is only a preparation for you before stepping into the real world; the world of forex market.
Should you have any doubts, please do not hesitate to search for forums where people sharing and distributing tips and tricks in the forex market. You are welcome to join the forum and please feel free to contribute or ask any question in the forex market forum. Some are beginners like you trying to learn on how to trade in the forex market. Be wary too when you go to forums because more than likely you will find others who seem to be the experts but in fact they are just beginners like you. Take notes on all sorts of opinions either positive or negatives and make your own judgment. Of course, trading in the forex market is not for beginners, so be patient and as perseverance as you can. Learning how to exchange correctly is essential and don’t ever stop though you have experimented few times. Keep learning so that you will be a good and patient beginner.
Millions have lost their jobs and a fraction of them have decided to jump into small businesses to make a little bit of fortune for themselves. That would be a smart move since survival is necessary and working hard and smart is the only way to survive. However, there are also those who believe that with some savings that they managed to keep during the good times they can just invest in other things such as the forex market. They are under the impression that trading in forex market is the best alternative to earn some handsome money. Unfortunately, that is not the case.
Forex market is not for beginners. I know that statement is pretty lame or cliché but that is the truth. “Beginners” are those who thought that simply by reading few manuals and “how-to” books on forex market and trading they can just play the game. Unfortunately, trading in forex market is not like playing snakes and ladders game. Trading in forex is also not like playing chutes and ladders. You can’t just throw the dice and wait till you reach the last space. That is not how beginners play the game of forex trading and marketing. There are just so many loopholes in the system and beginners will definitely fall into any of the booby traps.
Trading in forex market is like going into the jungle for war. To go into the jungle, you should always be prepared. You must bring your weapons and other necessary gadgets in order to survive. When you see enemies, you don’t simply fire at will. You use strategies to take the enemies down. If you are an FNG, then you have to go for training first. After you have gone intensive training, then only you are allowed to go into the forest and fight. In order to fight well, you have to go through a number of experiences. You will learn a lot along the way and that’s how a beginner should first tackle to ensure survival in the forex market.
The market is so huge that anyone can just join and make money; or lose money. Beginners are the easiest targets by many parties since they have no idea of which to trade and which is not to be traded. Unfortunately, the number of these brown cunning foxes portraying themselves as forex experts is numerous and keeps expanding from time to time; parallel to the number of beginners. If you are careless, then you are more likely to lose your money and I doubt that you will continue to trade. If you are lucky, then you are more than likely to earn a lot from trading in forex market though you are still a beginner. However, luck is probability that is taken personally. Luck is circumstantial and you don’t have any control over it whatsoever. If you are a beginner and you only trust on luck, then you can forget about trading in forex market. If you are a rationalist, then read on.
Fortunately these days it is quite easy to search for how-to books on how to trade in forex market especially for beginners. You just have to know the right place to find it. If you ask someone who could be an expert in forex market about where to find books or courses on how to trade in forex market for beginners, you might receive a number of answers. Some might say that you can find them on the net and some might say that it is best to first check out books from the forex experts. Either one, you will definitely find good materials to read about forex market.
Red Flags to Seek Out When Buying “How to Trade in Forex Market for Beginners” Books
If you go to the book store, you might end up looking at an array of thousands of books and magazines about beginners guidelines for trading in forex market. You won’t be able to differentiate which is the best material to read and which is just plain crappy forex market book. If you take a look at each one of the books, the possibility is almost certain to see some biography or author’s background on the first page or at the back of the books. Almost all of them will claim that they are the experts and the specialist in forex market. Almost all of them will claim that they know so much about forex and trading in the market and you should be listening to their advices.
Be as wary as you can but don’t be too paranoid when choosing the right book on how to trade in forex market. If possible, get some basic information first on who are the tycoons in this market. If you can’t find any experts’ names, do not be worry. Take some time between an hour or two to figure out which book stands out most. Reputable books are usually printed by reputable book publishers. If you can’t find any, then the best alternative is to choose a few books that you feel will provide you with some basics of trading in foreign exchange market. The bottom line is, there is no specific guideline you should follow the first time you buy books. Read all the books you have purchased and if the materials do not contradict with each other, then most probably that they are telling you the right thing about forex. If they don’t, then go out and buy some more books. Eventually you will end up knowing more about forex. Eventually you will know which one provides you with solid facts about how to trade in forex market and which one provides you total craps.
If it is more convenient for you to search for the information online, then you should keep in mind about the brown cunning foxes I mentioned earlier. They are tech-savvy guys too and they have published thousands of websites just to lure you into their traps. They just want your money and they just can’t help quitting from doing so. Search the net by using as many keywords as you can about forex. There is no such thing as learning from the best when it comes to forex trading. Learn the basics and then try your skills you have learned theoretically by using any free forex demos.
When to Start Trading in Foreign Exchange (Forex) Market
Beginners, hold your horses. Do you think that your “horse” is competent enough to beat other horses? Or do you think that you as the rider of the horse know well about your horse and control it? If what you have is just the theory, then you should first play around with the demos. You can sign up at any sites that offer the service and you can play with the account for free. You do not have to pay anything to get the demos. Be careful though that sometimes the demos have been tweaked to show great results so that later when you feel confident with your results you will sign up with them. So it is best to open few accounts with different providers and see the difference between them.
If you ask someone when you can actually start trading in forex, most of the times you will get answers like “you can start almost immediately” or “you should wait for at least 6 months”. You should stick to the second answer. Yes, you should wait for at least six months. So what should you do within that six months? You should study the market and make your own analysis on how the market goes and how the market is influenced by either political events or any sort of events. The market is just so huge that you cannot depend on the views of other people only. Most probably the person that you asked is also a beginner in the market and perhaps he too has only a small fraction of knowledge about the market.
Another thing that you should do before you begin trading is to play around with the forex demo as many times as you can. Learn how to read the graphs, learn how to interpret them, and learn the differences it makes when you invest a small amount of “money” and when you spend a big amount of money. The forex demo is designed to help you to understand the market flow and how you can manipulate the information that you have obtained. Six months is good enough for you to understand the “basics”. I repeat, the basics. You won’t be an expert in forex market simply by mastering the system in the forex demo account. It is only a preparation for you before stepping into the real world; the world of forex market.
Should you have any doubts, please do not hesitate to search for forums where people sharing and distributing tips and tricks in the forex market. You are welcome to join the forum and please feel free to contribute or ask any question in the forex market forum. Some are beginners like you trying to learn on how to trade in the forex market. Be wary too when you go to forums because more than likely you will find others who seem to be the experts but in fact they are just beginners like you. Take notes on all sorts of opinions either positive or negatives and make your own judgment. Of course, trading in the forex market is not for beginners, so be patient and as perseverance as you can. Learning how to exchange correctly is essential and don’t ever stop though you have experimented few times. Keep learning so that you will be a good and patient beginner.
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