Beginners Can Trade in Forex Market

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!