Before you begin learning to trade the Forex market You need to weigh all the pros and cons of this market and draw conclusions for themselves - whether this is for you. The Forex market is difficult in its simplicity and accessibility - it is easier to learn to trade, but harder to understand in comparison with other markets.
All lessons will be free. Why Forex visitors voted in the majority - Tips for beginners. I would like to hear during training You a lot of questions that You are guaranteed to get the answers.
The aim is to avoid loss of Your money, time, weed out what is necessary for trading (saving time in the search for literature, reading books) to put You on the right path and point out the many nuances.
What you need to trade Forex?
The ability
Money
Time
Ability is the significant factor of the profitability of the trade. This includes market analysis, vision, the ability to make the right focus, hone strict discipline and work on yourself. It's so easy You will not make money - because your competitors are commercial banks with their analytical departments, and pension funds, professional traders. Forex is not a casino game in black and white where 2 bets , and not a game of 2 buttons - buy or sell. But it is hard work.
Money - need money to start trading, the amount may be different depending on your requests and requirements. But, initially, the ability of the authority as having the skills, you can earn 1 thousand, having counts, and not having to lose can having 100k in the account. Money is always much easier to lose than to earn them - especially in PFS.
Time – it takes a lot of time and desire to start earning on Forex. If You are new to the market – You need to forget about earnings for at least 3 months as this time goes on familiarity with the market and work on demo accounts – checking their readiness for real work. There are traders that are unable to capitalize on FKH wasting your precious time, money and health wasted. Statistics say that only about 50-10% of people will become successful in the market remaining after the time lost "merge" or morally loaded failures leave the market forever.
Let's look at the pros and cons of Forex trading.
Pros:
- Hour access. Trading is possible 24 hours a day. If ,for example, in the stock exchanges such as NYSE, NASDAQ, AMEX stocks can only be traded in the us session, or some nuances on CME – then in Forex you can work starting Sunday night and ending Saturday, i.e. 6 days a week. Unlike stock markets, where transactions are conducted only during the working session, which usually coincides with a working day in the country, the forex market operates 24 hours a day. Market participants do not need to wait for market open. Besides practically there are no abrupt price changes that often happen on the exchanges due to the fact that the important information comes out of the ranges of the trading session. So a trader can with great flexibility to plan your trading activity.
- Liquidity. Providing a market full of freedom during trading operations in virtually any volume existing at the moment the prices. Through the Forex market daily volumes are more than a trillion dollars. The forex market is the largest market in the world - in 20 - 30 times more than the total US stock market. Such liquidity allows to open and close positions of any volume instantly, without any difficulty.
Unlimited in time
3.Financial independence. The availability of trading operations from any place which has connection to the Internet. You do not depend on an administrative resource tax, fire, and sanepidemstantsii. You work at home when you want and how you want without a Director - bringing to themselves the responsibility for the result.
Openness When working in the FOREX market there are no hidden costs and unexpected expenses. Before the transaction You know exactly how much needs to pay for her Commission and this amount you do not pay before and no more commissions.
Leverage •. The main difference in FOREX is the ability to buy and sell foreign currency without having the full amount necessary for operations. That is, your broker, in other words will give some of the money missing to trade, but the leverage leads to greater profits and losses.
- The focus of the market. The movement of currencies in the forex market is partly subject to a number of laws, both statistical and economic nature. A long enough period of time for which it is possible to trace these patterns allows them to track, allocate and use in trade for profit.
- Accessibility. The Forex market is available to everyone and you can trade starting from 1 dollar. This is impossible to do in Forex – as it is necessary Marigny the mortgage ,for example , for intraday trading on the U.S. stock market where you need to have more money 25 thousand.
Disadvantages Of Forex:
- The uncertainty of the future. You can spend a lot of money (even more than your initial Deposit if you treat gambling as a game) and time and leave the market without earnings, and trades to entertain the illusion and hope of success tomorrow. And in the end to "stay with".
- The lack of information. Forex after a few years of trading and reading many Internet sites realize that very little information, and all information rewriting from one source and half-truths. It happens that for some strange reason the price will go because ,for example, the world's largest company Exxon Mobil Corp received € 50 billion and decided to exchange them for dollars in a relaxed (thin) market. Information on the volume in the ECN are classified and have access to only certain market makers that much trouble trading simple in Forex unlike the stock and futures markets.
- The volatility of the market. The market is constantly changing and you need to follow the variability, to welcome innovation and to keep abreast of. Became particularly volatile price dynamics, volatility of prices, always increasing volume of applications, the amount of capital.
- There is no stability. Trader of FKH cannot plan their revenues and profits due to market volatility. In this market there will be a stable profit each month for a long time, and possible loss.
- Fraud. Forex has become the center of entertainment industry and a host of scams and scammers that revolve in the market and aim to collect money to recruit. Can be rapid and significant price changes with equally rapid return to the original condition which are not substantiated by independent sources of the quotes. If Yes, in 2007, the U.S. Commission on commodity futures trading (CFTC), a regulator of the currency market, noted the increasing cases of fraud in the activities of non-Bank industry of currency trading. The main object of the fraud is a private trader. In the CIS there is no regulator of the foreign exchange market, but a much higher level of fraud.
Here are the main advantages and disadvantages of the market. You decide whether you need the Forex market? Whether you want to try them? Il You are interested in the stock market? If you want to speculate in the future in the stock or commodities market –You will still be useful to test the market and to compare to practice trading on a demo account.
If you want I can try to learn, if you do not like or will not do trade can always quit.
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