Forex trading (foreign exchange) become the latest trading activity for beginner traders. Some of them see this as an opportunity to earn a living by trading from home as a Forex Home Trader. The foreign exchange market also known as the “Forex” is the trading between diff
erent currencies of different countries. This very liquid market only became available online for trading, to the individual private trader in last couple of years.
erent currencies of different countries. This very liquid market only became available online for trading, to the individual private trader in last couple of years.Every currency has it own three-letter symbol that will represent that country of the currency that is being traded. For example, the Japanese Jen is the JPY and the United Stated dollar is USD. So you will note that these currencies are always quoted as USD/JPN
These trades are facilitated through a Forex broker, with whom you will sign up, in order to get your own online trading account. It is strongly advised that you first sign up for a “Demo” trading account where you can trade currencies in a simulated environment – so none of your own funds will be used in “real time”. This type of account is excellent for developing your own trading strategy and for you to get the feel for the markets; it also prepares you for trading your own funds in a “Live” account. Warning! The degree of discomfort in trading in “Demo” mode varies greatly from “Live” trading as there is quite a difference between trading “cyber money” and trading your own funds “Real time”. Sign up for various “Demo” accounts at various brokers and test drive their online trading software or trading platforms – make sure that you start trading with the software you are most comfortable with, it is only in you own interest!
Be very aware of the following: You can lose some or all your funds in trading the Forex market! This market is extremely fast and some times very volatile! – ensure that you complete at least a comprehensive Forex trading course and try to enlist the help of a seasoned Forex trader that you can use as a mentor, before starting to trade actively in the market. To lose a lot of money in a trade when the market goes against you is not easy, you must be mentally strong to absorb you losses and have the drive to learn out of your mistakes!
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