Forex Home Trader ? Facts You Need To Know About Trading Forex
Posted by Nick Niesen on October 29th, 2010
Forex trading (foreign exchange) become the latest trading activity for beginner traders. Some of them see this as an opportunity to earn a living by trading from home as a Forex Home Trader. The foreign exchange market also known as the ?Forex? is the trading between different currencies of different countries. This very liquid market only became available online for trading, to the individual private trader in last couple of years.
Every currency has it own three-letter symbol that will represent that country of the currency that is being traded. For example, the Japanese Jen is the JPY and the United Stated dollar is USD. So you will note that these currencies are always quoted as USD/JPN
These trades are facilitated through a Forex broker, with whom you will sign up, in order to get your own online trading account. It is strongly advised that you first sign up for a ?Demo? trading account where you can trade currencies in a simulated environment ? so none of your own funds will be used in ?real time?. This type of account is excellent for developing your own trading strategy and for you to get the feel for the markets; it also prepares you for trading your own funds in a ?Live? account. Warning! The degree of discomfort in trading in ?Demo? mode varies greatly from ?Live? trading as there is quite a difference between trading ?cyber money? and trading your own funds ?Real time?. Sign up for various ?Demo? accounts at various brokers and test drive their online trading software or trading platforms ? make sure that you start trading with the software you are most comfortable with, it is only in you own interest!
Be very aware of the following: You can lose some or all your funds in trading the Forex market! This market is extremely fast and some times very volatile! ? ensure that you complete at least a comprehensive Forex trading course and try to enlist the help of a seasoned Forex trader that you can use as a mentor, before starting to trade actively in the market. To lose a lot of money in a trade when the market goes against you is not easy, you must be mentally strong to absorb you losses and have the drive to learn out of your mistakes!
Ensure that the broker or Forex Company which you decide to trade through is fully authorized to deal in Forex. In the United States, numerous rigid new laws and regulations regarding the trade of Forex for US citizens are being implemented. If you are searching the internet for a Forex broker, ensure that you read the ?fine print? on their brochure, proposal or website ? make sure that your company or broker is legal.
Before entering any trade make sure that you did your homework, did you do Fundamental analysis of the markets ? take a look at your economic calendar, what are the other countries doing? Will there be announcements that will influence the currency you are going to trade? Did you decide where your entry and exit point will be? Do not forget to set your stop loss! Otherwise your trade can be disastrous for you if the market turns against you and you don?t get out of your trade in time.
Remember that by preparing yourself well before entering any trade in Forex, can only benefit your own pocket, so be informed and enjoy Forex Trading!
About the AuthorNick Niesen
Joined: April 29th, 2015
Articles Posted: 33,848
CryptoKnight Capital - Earn Crypto on Auto-Pilot!
Start investing safely in crypto when you follow our automated cryptocurrency trading portfolios. Let us do the work and earn you money!
MXC | Bitcoin Trading Platform-Bitcoin_Litecoin Real-time Price Quotes | MXC Exchange
MXC Exchange is the world's leading digital asset platform. It provides real-time price quotations in multiple currencies such as BTC, LTC and ETH, and supports hundreds of digital assets trading and investment information. MXC Exchange is best choice
HOTBIT Crypto Exchange
Hotbit is one of the professional digital asset exchange platforms that provide trading services among major digital currencies like Bitcoin, Litecoin and Ethereum for users from all over the world.
The World's Leading Crypto Asset Trading Platform
Download The App - Celsius
Buy, Earn & Borrow on the Blockchain. Celsius Network lets you buy coins, earn interest on your crypto and borrow against it.
CryptoSlots: $1,000,000 Jackpot & Provably Fair Games
Provably Fair games, exciting wins, huge bonuses. ★CryptoSlots★ is your crypto casino of choice. Sign up in seconds to start winning!