Forex made easy for everyone

forexanbu03

Banned
Jul 3, 2020
18
8
9
33
Forex made easy is as simple as you would want it to be. The foreign exchange market is a worldwide market and according to some estimates is almost as big as thirty times the turnover of the US Equity markets. That is some figure to chew on. Forex is the commonly used term for foreign exchange. As a person who wants to invest in the forex market, one should understand the basics of how this currency market operates. Forex can be made easier for beginners to understand it and here’s how.

Foreign exchange is the buying and the selling of foreign exchange in pairs of currencies. For example you buy US dollars and sell UK Sterling pounds or you sell German Marks and buy Japanese Yen. Why are currencies bought or sold? The answer is simple; Governments and Companies need foreign exchange for their purchase and payments for various commodities and services. This trade constitutes about 5% of all currency transactions, however the other 95% currency transactions are done for speculation and trade. In fact many companies will buy foreign currency when it is being traded at a lower rate to protect their financial investments. Another thing about foreign exchange market is that the rates are varying continuously and on daily basis. Therefore investors and financial managers track the forex rates and the forex market it on a daily basis.

Those who are involved in the forex trade know that almost 85% of the trading is done in only US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar. This is because they are the most liquid of foreign currencies (can be easily bought and sold. In fact the US Dollar is most recognizable foreign currency even in countries like Afghanistan, Iraq, Vietnam etc).

Being a truly 24/7 market, the currency trading markets opens in the financial centers of Sydney, Tokyo, London and New York in that sequence. Investors and speculators alike respond to the ever-changing situations and can buy and sell simultaneously the currencies. In fact many operate in two or more currency market using arbitrage to gain profits (buying in one market and selling in another market or vice versa to take advantage of the prices and book profits).

While dealing in forex, one should have a margin account. Quite simply put if you have US$ 1,000 and have a forex margin account which leverages 100:1 then you can buy US$ 100,000 since you only need 1% of the US$100,000 or US$1,000. Therefore it means that with margin account you have US$ 100,000 worth of real purchasing power in your hand.

Since the foreign currency market is fluctuating on a continuous basis, one should be able to understand the factors that affect this currency market. This is done through Technical Analysis and Fundamental Analysis. These two tools of trade are used in a variety of other markets such as equity markets, stock markets, mutual funds markets etc. Technical Analysis refers to reading, summarizing and analyzing data based on the data that is generated by the market. While fundamental Analysis refers to the factors, which influence the market economy, and in turn how it would affect the currency trading. Of course there are other economic and non economic factors which can suddenly affect the trading of the forex markets such as the 9/11 tragedy etc. One needs to have a shrewd acumen and a few number crunching abilities to strike gold in the forex market.
 
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Zeenat shein

Banned
Apr 11, 2020
56
12
24
25
If it were easy, then more people would be doing it and making tons of money doing it.
So, no, it is not easy.
Trading, especially FX, does a very good job at attracting newcomers into thinking they can beat the market. One reason is, biased- hindsight confirmation.
 
Jul 22, 2020
2
2
3
35
Forex is not easy in any way. Technical trading strategies have been proven wrong so there's not much you can do to trade forex succesfully. You could rely on fundamental strategies, but its really hard to put USD/CAD fundamentals into numbers
 
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shahzaib95

Trader
Jul 23, 2020
1
2
6
18
Your friend Forex trading is not easy for everyone it is very difficult when you start but when you learn and earn it then you easily make good profit from that
 
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Reactions: Zalea and Kristof

Zalea

Newbie
Sep 15, 2020
28
2
4
26
Forex is that the usually used term for exchange. Foreign exchange is that shopping for and therefore the merchandising of exchange in pairs of currencies. Forex may be created easier for beginners to know it and here's however Forex is not easy for everyone. if anyone can do forex trading obviously research forex strategy.
 

Dora_WalletInvestor

Active Trader
Aug 17, 2020
282
43
44
Apart from what previous posters have said, that forex is not that simple, I would also like to add I wouldn't go around recommending margin trading so confidently. One of the first "rules" of any trading is to only invest capital you can afford losing. With margin trading, you can lose even more than you have invested if things don't go your way. It is a risky business even for professional traders.
 

ForexTus

Banned
Sep 23, 2020
28
4
4
36
Forex made easy is as simple as you would want it to be. The foreign exchange market is a worldwide market and according to some estimates is almost as big as thirty times the turnover of the US Equity markets. That is some figure to chew on. Forex is the commonly used term for foreign exchange. As a person who wants to invest in the forex market, one should understand the basics of how this currency market operates. Forex can be made easier for beginners to understand it and here’s how.

Foreign exchange is the buying and the selling of foreign exchange in pairs of currencies. For example you buy US dollars and sell UK Sterling pounds or you sell German Marks and buy Japanese Yen. Why are currencies bought or sold? The answer is simple; Governments and Companies need foreign exchange for their purchase and payments for various commodities and services. This trade constitutes about 5% of all currency transactions, however the other 95% currency transactions are done for speculation and trade. In fact many companies will buy foreign currency when it is being traded at a lower rate to protect their financial investments. Another thing about foreign exchange market is that the rates are varying continuously and on daily basis. Therefore investors and financial managers track the forex rates and the forex market it on a daily basis.

Those who are involved in the forex trade know that almost 85% of the trading is done in only US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar. This is because they are the most liquid of foreign currencies (can be easily bought and sold. In fact the US Dollar is most recognizable foreign currency even in countries like Afghanistan, Iraq, Vietnam etc).

Being a truly 24/7 market, the currency trading markets opens in the financial centers of Sydney, Tokyo, London and New York in that sequence. Investors and speculators alike respond to the ever-changing situations and can buy and sell simultaneously the currencies. In fact many operate in two or more currency market using arbitrage to gain profits (buying in one market and selling in another market or vice versa to take advantage of the prices and book profits).

While dealing in forex, one should have a margin account. Quite simply put if you have US$ 1,000 and have a forex margin account which leverages 100:1 then you can buy US$ 100,000 since you only need 1% of the US$100,000 or US$1,000. Therefore it means that with margin account you have US$ 100,000 worth of real purchasing power in your hand.

Since the foreign currency market is fluctuating on a continuous basis, one should be able to understand the factors that affect this currency market. This is done through Technical Analysis and Fundamental Analysis. These two tools of trade are used in a variety of other markets such as equity markets, stock markets, mutual funds markets etc. Technical Analysis refers to reading, summarizing and analyzing data based on the data that is generated by the market. While fundamental Analysis refers to the factors, which influence the market economy, and in turn how it would affect the currency trading. Of course there are other economic and non economic factors which can suddenly affect the trading of the forex markets such as the 9/11 tragedy etc. One needs to have a shrewd acumen and a few number crunching abilities to strike gold in the forex market.


Nice post thank you
 

Dora_WalletInvestor

Active Trader
Aug 17, 2020
282
43
44
is it not worth mentioning the negatives and the way margin and leverage can also work against you?

I think it is worth mentioning, and it is important to mention it, too. Margin trading sounds great up until the point where one realizes how risky it really is, and it's possible to lose a lot of money if one is not careful...
 

Terry_8

Trader
Mar 23, 2020
252
9
19
51
is it not worth mentioning the negatives and the way margin and leverage can also work against you?
It definitely is! Leverage, if not used correctly, can have a huge wrong impact, got to be rational and careful while choosing the correct leverage.
 
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hk_09

Banned
Oct 30, 2020
90
12
19
38
It definitely is! Leverage, if not used correctly, can have a huge wrong impact, got to be rational and careful while choosing the correct leverage.
Agreed, the correct leverage is crucial to our trading. Beginners, especially should be too focused and careful while choosing the leverage they trade at.
 
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Reactions: Terry_8

Resolve

Master Trader
Dec 7, 2013
741
8
54
Agreed, the correct leverage is crucial to our trading. Beginners, especially should be too focused and careful while choosing the leverage they trade at.
If we will make use of lower trading leverages then we can make sure that the losses in our trading will remain under control.
 
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Reactions: hk_09

danielbro

Trader
Nov 26, 2020
60
11
9
39
The more accurate title is Forex made accessible for everyone. Forex is never easy else we would all be millionaires (or even billionaires at this point)
 
Aug 5, 2021
266
20
24
26
I wouldn't call forex trading easy as many of us put a lot of blood, sweat, and tears into it. However, you did make the point that it's something that everyone could have the opportunity to do (given access to the internet and etc.).
 

sharabela

Master Trader
Oct 19, 2016
125
7
54
43
Forex made easy is as simple as you would want it to be. The foreign exchange market is a worldwide market and according to some estimates is almost as big as thirty times the turnover of the US Equity markets. That is some figure to chew on. Forex is the commonly used term for foreign exchange. As a person who wants to invest in the forex market, one should understand the basics of how this currency market operates. Forex can be made easier for beginners to understand it and here’s how.

Foreign exchange is the buying and the selling of foreign exchange in pairs of currencies. For example you buy US dollars and sell UK Sterling pounds or you sell German Marks and buy Japanese Yen. Why are currencies bought or sold? The answer is simple; Governments and Companies need foreign exchange for their purchase and payments for various commodities and services. This trade constitutes about 5% of all currency transactions, however the other 95% currency transactions are done for speculation and trade. In fact many companies will buy foreign currency when it is being traded at a lower rate to protect their financial investments. Another thing about foreign exchange market is that the rates are varying continuously and on daily basis. Therefore investors and financial managers track the forex rates and the forex market it on a daily basis.

Those who are involved in the forex trade know that almost 85% of the trading is done in only US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar. This is because they are the most liquid of foreign currencies (can be easily bought and sold. In fact the US Dollar is most recognizable foreign currency even in countries like Afghanistan, Iraq, Vietnam etc).

Being a truly 24/7 market, the currency trading markets opens in the financial centers of Sydney, Tokyo, London and New York in that sequence. Investors and speculators alike respond to the ever-changing situations and can buy and sell simultaneously the currencies. In fact many operate in two or more currency market using arbitrage to gain profits (buying in one market and selling in another market or vice versa to take advantage of the prices and book profits).

While dealing in forex, one should have a margin account. Quite simply put if you have US$ 1,000 and have a forex margin account which leverages 100:1 then you can buy US$ 100,000 since you only need 1% of the US$100,000 or US$1,000. Therefore it means that with margin account you have US$ 100,000 worth of real purchasing power in your hand.

Since the foreign currency market is fluctuating on a continuous basis, one should be able to understand the factors that affect this currency market. This is done through Technical Analysis and Fundamental Analysis. These two tools of trade are used in a variety of other markets such as equity markets, stock markets, mutual funds markets etc. Technical Analysis refers to reading, summarizing and analyzing data based on the data that is generated by the market. While fundamental Analysis refers to the factors, which influence the market economy, and in turn how it would affect the currency trading. Of course there are other economic and non economic factors which can suddenly affect the trading of the forex markets such as the 9/11 tragedy etc. One needs to have a shrewd acumen and a few number crunching abilities to strike gold in the forex market.
Forex is never easy. It is not only tough but the 2nd riskiest business in the world after coal mining. Nevertheless, people get engaged with this business and some makes fortune out of it. One must try hard and be very patient in every single second with this market.