Forex is a port of forex and exchange. Forex is the process of converting one currency into another currency, usually for trade, commerce or tourism, for a variety of reasons. According to a recent three-year report by the Bank for International Solutions (Global Bank for National Central Banks), the average daily foreign exchange trading volume was more than $ 5.1 trillion.
Who or what are the key players involved?
As the world's largest financial market, it may come as a surprise that there are only five key players:
Central banks facilitate government monetary policy in each country. For example, the United States has the Federal Reserve. Bank of Japan is located in Japan.
Bank There are trading currencies with banks through electronic networks.
Large companies participate in foreign exchange. For example, before a US-based company buys parts in China, it must first exchange the US dollar for the Chinese yuan (CNY)
Cash managers are individuals who trade in the foreign exchange market and manage investment funds on behalf of their clients, including central banks and the government.
Individual traders are individuals who use their own capital to trade and speculate in the currency market. Once you learn more about forex trading you will soon be one of them.
What are the seven major currencies and pairs?
Although there are many currencies around the world, the forex market is dominated by seven major currencies. Each is linked to another currency based on the overall cash flow.
Major Coins
Coupling the main currency
The New Zealand dollar (NZD) generally ranks eighth.
Now that you have the basic information you need, you can start buying or selling currency pairs. At the simplest level, forex investment requires basic analysis to help you make a profit.
You can say that the currency pair is rooted for EUR / USD.
The euro acts as the base currency and the USD as the reference currency
This means the EUR will be the basis for whether to buy or sell a currency pair.
Given the current state of the US economy due to the impact of the corona virus, you believe it will continue to weaken. So, expecting the euro to rise against the dollar, you execute the buy order.
If the situation is reversed, you are running a sales order because you expect the euro to fall.
Are you getting the forex sense yet?
Once you learn the ropes and transition from start to finish, you will find strategies that you can use to earn more, including going longer or shorter.
How to start forex trading?
1.Start with the basics
You must first build a solid framework for your life. If you think this is boring, you want to learn directly how to make money and study advanced strategies, you are going to build very weak foundations and sooner or later, the building you are building will crumble.
2.Choose the right broker
I have many things to say about brokers, but I will try to keep this article simple and concise, so I will put my advice first when you choose a broker: check regulation.
When you visit a broker's homepage at the bottom of the page, you can read the regulation and authorization that the broker holds.
You want your broker to be controlled by a strong national institution because it is a guarantee that your money is in safe hands.
3.Training
It is very good that you have read the basics, you know nothing about pips, forex, margin, loss stopping, profit and many more concepts, but you need to put this into practice.
As I always tell my students, when you sign up for the gym, you have all the equipment and an instructor is ready to follow you, but if you watch a TV series on Netflix and go home eating chips, you will not see any results, will you? So, open a demo account, which is an account provided by many brokers, allows you to trade for free and be active with the same market conditions, start trading as soon as possible.
4.Have a trading strategy
Most traders fail because they do not have a strategy. They approach the forex market like gambling.
"I think the euro dollar will depreciate today" or "I believe the Australian dollar will be strong today".
No, there is no room for “I feel” and “I believe”. You need a strategy. It can be a strategy based on price action, it can be a strategy based on indicators, it can be a means, it's really options, but you have to have a strategy, otherwise, trust me, your life will not last long as a forex trader.
5.Focus on risk management
Risk management is the most important part of building a successful career as a forex trader.
You have to be a trader and a risk manager.
You need to have rules to protect your money because once your money is gone you are no longer in the game.
IF YOU ENJOYED THIS ARTICLE PLEASE
DON'T FORGET TO GIVE ME A
AND
FEEL FREE TO ASK ANYTHING,I SEE YOU IN THE NEXT ONE ,UNTIL THEN ENJOY WATCHING THIS METEOROID.
Beware, there are lot of forex scams. I did subscribed and like you please do same to me.