This article is not a tutorial, merely an encourager; you really do need to learn from the experts. However I can tell you a little about what Forex trading is, where it comes from and some of the possibilities.
FOREX stands for Foreign Exchange Market, also called FX, or the Currency Market. It is a world-wide market for the purpose of the exchange of one currency for another for trading purposes.
When the world, following the US lead under Nixon, gradually abandoned the gold standard, the Bretton Woods system, set up in 1944, gave way to the FX during the 1970s.
The Forex determines how the values of different currencies are related to one another. It operates for 24 hours a day, 5 days a week, i.e. 20.25 on Sunday until 22.00 on Friday [this is Greenwich Mean Time] The volume of trading is massive. It is estimated that an average of $ 1.8 trillion per day is traded, making it the world’s greatest financial sector.
Want to give it a try? Yes, you do have a long way to go but it can be financially worthwhile as well as very, very interesting. The basic idea is to buy low and sell high, coming out with a profit. However there is much more to getting this right than meets the eye. You need to get into the habit of studying trends, find out the rules and regulations governing the Forex market and how trading takes place. Reading and studying every bit of information you can find online, offline and in books; attending seminars and lectures; talking to the experts will help. Before you start trading, you need to know enough to plan and form strategies. Trade small at first until you are confident that you know the ropes, your experience is growing and your strategies actually working.
You can find good tutorials online conducted by experts. There are also websites offering software that you may find very helpful.
Your knowledge needs to expand to include world events and day- to-day happenings. Everything significant that happens in the world affects currencies and trading. This will help you to make informed decisions about what to trade in and when to make your moves.
You are going to need both discipline and confidence. You cannot make the right decisions running on emotions. This is no lottery! You cannot be greedy, or blindly follow forecasts. The successful investor is going to be successful from making the right decisions for the right reasons and nothing else.
If this all seems too much for you, you can approach a forex broker to act for you, or you may be able to get advice and tips, to help you along. Just be sure that he has a proven success record.
Although it is not an easy task to negotiate the mysteries of the Forex, when you do you can turn just a few dollars into thousands by buying and selling the right currencies at the right times.