Even when pitted against huge currency markets like the Stock Market and Cryptocurrency, Forex is still the largest key player in the money-making field to which it belongs. Prominent businessmen, as well as typical individuals, are trading on it every day accumulating great piles of riches along the way. Anyone, including you, who might have no basic background with Forex yet can get rich with the market too… if you educate yourself with the analytical and technical skills needed.
Why Forex is declared as the largest trading market is the fact that it never sleeps, literally. For every single minute in which people buy goods, via online or through shipping, currencies from every country get transported, stored, and converted into another form as well.
Although the main office of Forex is only open from Monday to Friday, the trading tasks that people do online never stop. Another factor that makes it unimaginably huge is that it is able to circulate around 4 trillion dollars of money every day.
Billion-dollar companies, government institutions, and business-minded entities of all kinds trade within currency exchange every minute that’s why the market grows exponentially throughout the generations.
Because of this overwhelming fact, it would be unwise to not participate in Forex. You might ask, “How can a small-time individual like me take part in such a massive market?” You might see yourself as a nobody who can’t contribute anything to the endless cycle of foreign exchange but read on. You will eventually find out that you can take part in it, and by doing so, you can reap huge rewards in the long run.
What to expect from this article series that I’ll be doing.
This article series is intended for those who don’t have any knowledge whatsoever about Foreign Exchange. But this doesn’t mean though that there isn’t anything new to learn if you are someone who’s very well-versed already with the intricacies of the currency market.
In the posts that follow, you will get to know the beginner’s guide to trading, the right psychology of a trader, and what are the basic mechanisms that make Forex what it is. Once you’ve been through that, you will then be provided with the knowledge on how to proceed with your very first trading experiences.
Also included in the discussions will be how to find a good broker, how to avoid bad ones, and what are the worst mistakes that a trading newbie must avoid. To get really good with your trading decisions as you improve on your skills, an in-depth guide about how you will conduct some analysis will also be explained.
Since Forex is about making money, how you will manage your finances as a trader will also be tackled. The best techniques and strategies will also be included so that you will become an expert already during the commencing paragraphs of this article series.
Currency trading requires that you should be very good with logic, and quick decision making. If you can attain these qualities in increasing measure, a great means of financial freedom surely awaits you as you immerse yourself deep into the lessons written in this material. Lucky for you, all you need to learn about getting rich with Forex is already laid out for you in the posts that follow.
You will be ushered into a detailed process about how to have the right mindset, what steps to take, and how to get ahead in the trading game of the currency market. It will not always be an easy undertaking, but it will surely be a worthwhile experience for you as a Forex aspirant.
Understanding The Flow of Foreign Exchange
Traveling to another country, buying goods, and exchanging the currency of one country to another are three of the main activities that take place within the Forex market. Without such, the whole system wouldn’t function at all, and Forex wouldn’t be declared as the biggest market in the world.
The core concept of foreign exchange can be understood in this simple scenario. For instance, when one country buys goods from another country, it needs to buy the local currency first, which is exactly what happens when you go on a vacation. Paying for hotel accommodation, cab fares, and dining in restaurants would be impossible if you don’t get to acquire the currency of the country you’re visiting.
What tourists and single individuals do is just the same as how huge businesses and governments participate in Forex. The only difference is that extremely huge amounts are being processed because it could be a governmental transaction or it could be a major corporation obtaining a large volume of goods.
As companies and individuals exchange currencies, they actually move the price since the demand for the currency they deal with increases. When the demand increases, the prices go with it as well. As with any market, the prices that revolve around Forex are determined by the law of supply and demand.
If there are a lot of people who want to exchange their Euros into Dollars, the price of the Dollar will rise compared to the Euro, thus changing the exchange rates. By having a thorough understanding of such processes, any determined individual can make huge profits out of it.
Some well-educated professionals are even quitting their day jobs because of the irresistible allure that Forex trading shows. The brilliant thing about it is that the allure could indeed become real when the right mindset and attitudes are attained and executed.
Forex in a simple approach
To simplify the mechanism behind Forex, let’s understand this simple transaction. If you are from Europe, and you went on a vacation to The US and exchanged your 500 Euros at the rate of 1.60 US Dollars, you will get nearly 700 Dollars instantly. If you hold on to it for a while, you could gain more if the exchange rate from USD to Euro gets even higher. Conversely, though, you could also suffer from great losses if you happen to exchange the currency you’re holding when the rates are low.
So the concept of Forex trading basically lies in the act of buying a certain amount of currency, holding on to it a bit, while waiting for the rates to rise, and then exchange the money back to its original form. This is how some Forex traders get very rich – they have a very deep understanding of how the value of money rises or how it falls at certain times.
Making huge gains with Forex seems to be truly attainable if you will just travel from one country to another. However, such a move wouldn’t be very practical as it would be very time-consuming and not to mention very exhausting. Fortunately, there is an easier and more convenient way to achieve the goal.
By signing up to various online platforms that specialize in handling foreign exchange trades, interested parties can participate with Forex right at the comfort of their own homes or anywhere they want. Armed with just a mobile phone or a laptop, anyone can trade any form of currency to another, accumulating huge amounts of money daily.
What this actually means is that you can select any time of the day to watch the constantly changing rates and take advantage of such fluctuations. When you notice that a certain currency has a low value, you may buy that currency and when it becomes high, you will sell it so you’ll gain revenue.
There will be more of this in the next few days. Until then, Excelsior!
This was my first learning goal in 2021. But I have to move it back when I got involved in cryptocurrency. But I still want to learn forex trading and try it in the months to come.