Forex trading is the exchange of currencies in a global setup. It is always advisable to start by opening a demo account. It gives you a trial run before any serious investments. You can learn a lot by observing how things are going on in the market.
The whole thing may check your patience as profits are hard to come by if not persistent in decisions. Never make the mistake of jumping to quick decisions and taking unnecessary risks. The timing of buying and selling of currencies is critical to the success. One must clearly understand when the trend is going up or when the exchange rates are down that can lead to less profit or even losses. Always focus on the current market trends and the global happenings that may affect that.
Intelligent traders never feel overwhelmed by winning trades or getting disappointed by losing a round. The law of averages will catch you sometime. Think straight and plan for the long term scenario. Analyze the conditions prevailing in the Forex market and make intelligent decisions that agree with the market realities. Always remember that in order to obtain practical profits you must know the trade like the back of your hand.
Why Trade the Forex?
Forex market is the global market for trading of currencies. It is the most liquidated financial market in the world. This means that compared to commodities and the stock markets, there will not be much market manipulation.
One can open a Forex trading account with much less money than you must initially invest for a commodity or share trading. There are no brokerage fees in the Forex market. For any pair, of currency that you trade in the transaction cost is the difference between their buying and selling price. The profit or loss may multiply extremely slowly in Forex trading with investments at leverage of 1:100 and lower. But it can as high as 1:4 in the commodities and the stock markets. So, you can be sure not lose your investments and make reasonable profits on the safe side.
Trade execution is almost instantaneous as you don’t have to depend on a broker, to do it for you. Most of the trade is concentrated on a few currencies which makes trading simpler unlike the stock and commodities market where you have them in hundreds and thousands. Making trading decisions even simpler is that except in weekends, the Forex market is open for business throughout the day.