What Is Forex Trading?
The foreign exchange market is where currencies are traded.
Currencies are important to most people around the world, because currencies need to be exchanged in order to conduct foreign trade and business. The same goes for traveling. A French tourist in Egypt can’t pay in euros to see the pyramids because it’s not the locally accepted currency. As such, the tourist has to exchange the euros for the local currency, in this case the Egyptian pound, at the current exchange rate.
The need to exchange currencies is the primary reason why the forex market is the largest, most liquid financial market in the world.
Currency trading is conducted electronically which means that all transactions occur via computer networks between traders around the world. The market is open 24 hours a day, five and a half days a week, and currencies are traded worldwide in the major financial centers of London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney – across almost every time zone. This means that when the trading day in the U.S. ends, the forex market begins anew in Tokyo and Hong Kong. As such, the forex market can be extremely active any time of the day, with price quotes changing constantly.
CAN I MAKE A LIVING TRADING FOREX?
That’s a good question
Every successful trader started somewhere before they learned the ins and outs of forex. By asking this question, it shows you do care and hopefully the answers you read will help put you in the right direction for making sustainable profits and making a realistic learning curve. Forex can be very profitable but is quite complex due to all the variables impacting it which is why its hard but not impossible to master.
When trading Forex due to the lack of expertise you will inevitably lose trades and money.
Even if you lose money in the beginning, you should not quit, it should only drive you to try harder, learn more, change your trading plan and try again until your percentage of successful trades outweighs your losses because if the amateur works hard and gains valuable experience, then the answer changes to YES because they stop being an amateur and becomes a PROFESSIONAL TRADER
EDUCATION IS THE KEY
You could decide that you have great instincts and money to burn so you do not need to complete any training as your training will come from “live trading” unfortunately this is what most amateur traders think and why they lose all their money and run to the hills.
PATIENCE IS THE KEY TO SUCCESS
The patience to build your in depth knowledge of the Markets and Trading Analysis indicators is rare in this fast paced world but building a strong foundation stands you in good stead when emotions come in to play.
People are filled with emotions making us who we are. Usually this is not a bad thing since it makes us able to socialize, empathize and be good human beings. In the world of trading human emotion is a detriment that can impact even the best forex traders. Emotions hinder our rationale, and logical thinking which may poorly impact out trading decisions.
That’s why we believe in the strength of Forex Trading Analysis tools as these remove the possibility of the trader being influenced by emotion and get in and out of trades at exactly the wrong moments./ Also it is good to remember that most markets are manipulated by a variety of factors but the most basic tenet to remember is to trade with a long term view and not to attempt to beat the market to make fast money as the only fast money you will see is your own flying out of the window!
OUR TOP 3 TRADING ANALYSIS TOOLS
The Ichimoku Kinko Hyo, or Ichimoku for short, is a technical indicator that is used to gauge momentum along with future areas of support and resistance. The all-in-one technical indicator is comprised of five lines called the tenkan-sen, kijun-sen, senkou span A, senkou span B and chickou span.
Understanding Ichimoku Kinko Hyo
The Ichimoku Kinko Hyo indicator was originally developed by a Japanese newspaper writer to combine various technical strategies into a single indicator that could be easily implemented and interpreted. In Japanese, “ichimoku” translates to “one look,” meaning traders only have to take one look at the chart to determine momentum, support, and resistance.
Ichimoku may look very complicated to novice traders that haven’t seen it before, but the complexity quickly disappears with an understanding of what the various lines mean and why they are used.
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