Earning Money From The Forex Market, Myth or Reality?
In this article I would like to first of all establish what the Forex market is and how to trade on the Forex Market. How to profit from trading the Forex market; and manage a profitable account.
What is the Forex market?
The buying and selling of currency pairs is what is known as the forex, FX or Foreign Exchange. The process of trading forex can be done from the comfort of your home with a high speed internet connection and a computer, in fact it can be done from anywhere in the world as long as you have access to a computer and the internet. Many people are now setting themselves up at home as independent forex traders and getting a slice of the tax free trillions that are traded on the forex market every day.
How To Profit from Currency Trading.
The countries currencies around the world are paired up into specific pairs e.g. GBP/USD or EUR/USD e.t.c. It is these currency pairs that fluctuate in price against each other. Today the USD might be worth $1.60 to the pound and tomorrow it might be worth $1.65 to the pound. In the forex market we trade on the last two decimal places so a fluctuation of a tenth of a penny would be worth whatever your stake is on that trade. If you stake 10 per point and the trade moves 10 points or 1p then you would make 100 profit.
Trading profitably is all about risk management after all you get loosing trades even the best traders in the world cannot completely predict the movement of a currency. You must know your entry and exit points to a trade and where you intent to place your stop loss and profit orders. Only trade with 5% of your trading account, at any one time.
Always trade with a stop loss in place this can not be stressed enough. Start by setting yourself a 30 point stop loss and a 30 point profit order. A stop loss means that if your trade goes the wrong way you will only lose what you have set your stop loss at and no more. if you do not set a stop loss then a computer generated stop loss will be generated for you which can be upt to 200points. - 23208
What is the Forex market?
The buying and selling of currency pairs is what is known as the forex, FX or Foreign Exchange. The process of trading forex can be done from the comfort of your home with a high speed internet connection and a computer, in fact it can be done from anywhere in the world as long as you have access to a computer and the internet. Many people are now setting themselves up at home as independent forex traders and getting a slice of the tax free trillions that are traded on the forex market every day.
How To Profit from Currency Trading.
The countries currencies around the world are paired up into specific pairs e.g. GBP/USD or EUR/USD e.t.c. It is these currency pairs that fluctuate in price against each other. Today the USD might be worth $1.60 to the pound and tomorrow it might be worth $1.65 to the pound. In the forex market we trade on the last two decimal places so a fluctuation of a tenth of a penny would be worth whatever your stake is on that trade. If you stake 10 per point and the trade moves 10 points or 1p then you would make 100 profit.
Trading profitably is all about risk management after all you get loosing trades even the best traders in the world cannot completely predict the movement of a currency. You must know your entry and exit points to a trade and where you intent to place your stop loss and profit orders. Only trade with 5% of your trading account, at any one time.
Always trade with a stop loss in place this can not be stressed enough. Start by setting yourself a 30 point stop loss and a 30 point profit order. A stop loss means that if your trade goes the wrong way you will only lose what you have set your stop loss at and no more. if you do not set a stop loss then a computer generated stop loss will be generated for you which can be upt to 200points. - 23208
About the Author:
Adam Woods has been trading foreign currency for three years but never realised his true potential until he joined up with Colin Atkins at his private online club Now Adam is trading full time from home and gaining the confidence to increase his target profit everyday. Come and see how this lucrative business can give you the opportunities you need to trade on the forex market from home
posted by X - Men @ 10:53 AM
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