Bitter Truth About Forex And What You Trade

 

THE TRUTH IS BITTER

There are certain facts that should sink into your head before you consider trading currencies:

These are the truth about the FXmarket which most people who offer free Seminars and training wouldn’t like to tell you.

Nothing good come easy boy! Let’s check it out!

Ø All Forex Traders LOSE Money On Trades.

As I have mentioned earlier, more than 97% of traders lose money, mainly because of lack of Training, Improper Planning or Poor Money Management rules. That’s it!!

Ø Forex Trading Is A SKILL You Need To Learn.

Let me tell you the truth. Skilled traders make good money in this field daily. I think the 2% winners are skilled traders.

First of all, Learn how to trade. After that, “Try the DEMO”. And when DEMO trading, pretend as if it is real money. When you lose in your DEMO, feel the pain and try to rectify where you went wrong.

Ø Forex Is Not Job Seekers or low income

You should be able to have at least $10,000 of trading capital (in a mini account) or $1000 (in micro account).

Also be sure you can afford to lose all.

Ø Want To Get-Rich-Quick? Forex Is Not For You.

If you are the type that wants to make some Trillions of Bucks with a deposit of few hundreds of Dollar in THREE months, just kick your ass out’a here! Look for another type of business.

Ø Concentrate On ONE Major Currency Pair.

Always stick with one of the major pair because they are the most liquid with cheap spreads.

Personally, I love the EUR/USD so much. Good traders profit always with it.

You can stick with any of the major pairs and when you are familiar with one, you may try another.                      

     What Do You Trade On The FX Market?

 

The simple answer is MONEY.

Since Forex trading is the simultaneous Buying of one currency and the Selling of another, therefore, you trade two currencies at a time.

We call it pairing.

To summarize it all, currencies are traded in pairs.

For example,

Ø European Euro and United States Dollar is represented as EUR/USD,

Ø British Pound and United States Dollar as GBP/USD and 

Ø British Pound and Japanese Yen as GBP/JPY..... etc.

 

Because you're not buying anything physical, this kind of trading can be confusing.

Think of buying a currency as buying a share in a particular country.

When you buy, say, Canadian Dollar (CAD), you are in effect buying a share in the economy of Canada at that particular price and time.

The price of the currency is a direct reflection of what the market thinks about the current and future status of that country’s economy.

 

To be precise, the currency value of any country you buy into or sell out of depends on whether the economy is strong or weak at that point in time.

In this effect, the currency value of a Country is the yardstick for measuring the Nation’s economy.

 

You measure the US economy with the Dollar, New Zealand economy with NZD.  etc.

 

Ok, buddy, let’s take a look at the major traded currencies.