Forex Trading -1

Forex for beginner traders is an excellent opportunity to prove oneself. Here you can make money with your knowledge and skills without ever leaving your own home! However, the foreign exchange market is tamed down only to those who are able to demonstrate psychological strength and discipline. 

To make it in the Forex market you have to arm yourself with enough patience to go all the way to victory.The work of Forex market is directly connected with the Internet and information technology. That gives everyone opportunity to get to know Forex better and try one’s strength. All you need is an internet connection – and you can trade wherever you are!



Basically, the Forex market is where banks, businesses, governments, investors and traders come to exchange and speculate on currencies. The Forex market is also referred to as the ‘Fx market’, ‘Currency market’, ‘Foreign exchange currency market’ or ‘Foreign currency market’, and it is the largest and most liquid market in the world with an average daily turnover of $3.98 trillion.

The Fx market is open 24 hours a day, 5 days a week with the most important world trading centers being located in London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris, and Sydney.

It should be noted that there is no central marketplace for the Forex market; trading is instead said to be conducted ‘over the counter’; it’s not like stocks where there is a central marketplace with all orders processed like the NYSE. 

Forex is a product quoted by all the major banks, and not all banks will have the exact same price. Now, the broker platforms take all theses feeds from the different banks and the quotes we see from our broker are an approximate average of them. It’s the broker who is effectively transacting the trade and taking the other side of it…they ‘make the market’ for you. When you buy a currency pair…your broker is selling it to you, not ‘another trader’.

What is Forex Trading?

Forex trading as it relates to retail traders (like you and I) is the speculation on the price of one currency against another. For example, if you think the euro is going to rise against the U.S. dollar, you can buy the EURUSD currency pair low and then (hopefully) sell it at a higher price to make a profit. Of course, if you buy the euro against the dollar (EURUSD), and the U.S. dollar strengthens, you will then be in a losing position. So, it’s important to be aware of the risk involved in trading Forex, and not only the reward.

Why is the Forex market so popular?

Being a Forex trader offers the most amazing potential lifestyle of any profession in the world. It’s not easy to get there, but if you are determined and disciplined, you can make it happen. Here’s a quick list of skills you will need to reach your goals in the Forex market:

• Ability - to take a loss without becoming emotional
• Confidence - to believe in yourself and your trading strategy, and to have no fear
• Dedication – to becoming the best Forex trader you can be
• Discipline - to remain calm and unemotional in a realm of constant temptation (the market)
• Flexibility - to trade changing market conditions successfully
• Focus – to stay concentrated on your trading plan and to not stray off course
• Logic – to look at the market from an objective and straight forward perspective
• Organization – to forge and reinforce positive trading habits
• Patience – to wait for only the highest-probability trading strategies according to your plan
• Realism – to not think you are going to get rich quick and understand the reality of the market and trading
• Savvy – to take advantage of your trading edge when it arises and be aware of what is happening in the market at all times
• Self-control – to not over-trade and over-leverage your trading account

As traders, we can take advantage of the high leverage and volatility of the Forex market by learning and mastering and effective Forex trading strategy, building an effective trading plan around that strategy, and following it with ice-cold discipline. Money management is key here; leverage is a double-edged sword and can make you a lot of money fast or lose you a lot of money fast. 

The key to money management in Forex trading is to always know the exact dollar amount you have at risk before entering a trade and be TOTALLY OK with losing that amount of money, because any one trade could be a loser. More on money management later in the course. Hang on with smarthubcash to get the latest forex trading articles. Our advise is to not start to invest before you learn well. So learn well and then you can earn well.